Q:

How do you buy silver futures?

A:

Quick Answer

As of October 2014, to buy silver futures, an account must be opened with a futures broker. Funds are deposited sufficient to cover the performance bond and to maintain a margin level meeting exchange requirements: $6,050 and $5,500 respectively for the 5,000 troy ounce contract on the Chicago Mercantile Exchange.

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Full Answer

There is also a 1,000 troy ounce contract available in the Intercontinental Exchange. It carries an initial performance bond of $1,375 and a maintenance margin requirement of $1,250. It is also necessary to deposit funds sufficient to cover any account fees, commissions and foreign exchange costs. Once this is completed, buying silver futures simply requires entering an order online or over the telephone.

Trading futures involves a significant amount of risk and is suitable for experienced investors. It is possible to lose more money than the initial performance bond posted and to be put in a position of owing more money in the event of significant market moves against traders. It is possible that there may be no market available to liquidate a position at any price.

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