Silver futures contracts are tradable Instruments for the purchase and delivery of 5,000 ounces of silver (standard contract), or 1000 ounces of silver (Micro contract). Each futures contract, like silver, has a unique set of contract specifications that are set by the futures exchange.
Silver futures trading is an agreement between a buyer and seller at a specified price in a contract that will expire on a specific date. Traders can enter and exit positions any time one day prior to the first notice date in physically delivered futures like the silver contract.
There are many advantages to trading silver futures, including offering traders direct market access for speculating on the price movement of silver. Silver futures provide good liquidity virtually 24 hours a day, lower trading capital requirements, and uncorrelated diversification. Silver futures can also offer traders more trading opportunities and flexibility over coins, mining stocks, and ETFs with their many limitations.
Silver futures are traded on a well-regulated exchange where orders are matched and cleared on a fair and level playing field with full price and order transparency. Traders can place buy and sell orders through their broker to enter or exit a position virtually 24 hours a day in the silver futures market.
Yes, you can trade silver futures with NinjaTrader. NinjaTrader is an industry-leading futures broker offering low commissions, low margin rates, and safety of your account funds. With NinjaTrader you can trade dozens of the most actively traded futures markets in the world including the silver futures contract.
Like every futures contract, the primary risk here is that the price of the silver futures will go against the trader’s position. Mining sector news, economic and government news, and reports related to supply and demand can all have a significant effect on the price of silver futures.
Economic activity from the global silver industry can have a significant impact on the world economy. With its wide use in industrial and manufacturing applications, the price of silver is a vital economic global indicator.