E-micro Gold Futures

Buying, selling, and trading futures can be a profitable investment opportunity if done properly. Some of the most popular futures contracts available on the market are the new micro-sized futures, which are one tenth the size of a conventional futures contract, and therefore require only 10% of the conventional margin requirements/performance bond of a typical futures contract. These new micro futures are making Forex trading an accessible investment opportunity for a larger range of investors and traders, including individual traders, commodity trading advisors, and small/medium enterprises. The new micro contracts were introduced to the market by the Chicago Mercantile exchange (CME) in 2009, and since then have gained a lot of popularity and have attracted many investors to Forex trading. E-micro futures give almost anyone the ability to begin trading futures contracts, and are therefore suitable startup endeavors for aspiring traders.

What are E-micro Gold Futures?
E-micro Gold futures contracts are based on 10 ounces of gold, which is only 10% of the size of the global benchmark for gold prices. These contracts are offered by the Chicago Mercantile Exchange (CME), and are an ideal opportunity for individual investors that would like to begin investing in gold futures. Other than their size, E-micro Gold futures contracts hold many of the same attributes as conventionally sized gold futures contracts, including the same tick sizes, last trading days, and depository locations. It should be noted that an E-micro Gold futures contract simply gives the holder guaranteed access to an Accumulated Certificate of Exchange (ACE), which is equivalent to owning 10% of a 100 ounce bar of gold. Thus, in order to obtain an actual physical bar of gold the investor would have to have 10 contracts or Accumulated Certificate of Exchanges.

What Are the Benefits of E-micro Gold Futures?
Since the E-micro futures contracts are traded on the largest derivatives exchange in the world (Chicago Mercantile Exchange), and are regulated by the Commodity Futures Trading Commission, you can be sure that your assets are safe and you are investing in a lucrative opportunity. Because E-micro Gold futures require you to invest less money, you’ll ultimately be reducing investment risk, which is a crucial component for new investors that want to minimize losses in their initial trading endeavors. As such, E-micro Gold futures are less capital intensive and safer investments than standard gold futures. These contracts provide opportunities to aspiring traders that did not exist before 2009, and are causing a significant boost in the gold futures trading market. Not only are E-micro Gold futures less risky because of their size, they are also a reliable investment because of the consistent value of gold and the well-known risk management capabilities of CME.

Trading and Delivery Periods for E-micro Gold Futures
Trading E-micro Gold futures is terminated on the third business day of the specified delivery month. E-micro Gold futures trading is conducted within the months of April, June, February, August, December, and October. Delivery for the contracts may occur on any business day after the first business day of the delivery month, however cannot occur after the last business day of the specified delivery month. Gold delivered through E-micro Gold Futures contracts must be a minimum quality of .995, and all E-micro Gold futures contracts are subject to the regulations of COMEX. The minimum price fluctuations of an E-micro Gold Futures contract is $.10 per troy ounce, and prices are quoted in United States dollars and cents. It is important to remember that E-micro Gold futures contracts are not redeemed by physical gold. Instead, when the contract is delivered an ACE is issued by the Chicago Mercantile Exchange clearing house.

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