Platinum Futures and Palladium
Futures and Options Market
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Free Platinum/Palladium Futures E Guide
Dear clients and students of the commodity markets, the
following information should answer all of your questions about Platinum and
Palladium Futures and Options. You may also call 800-915-4716 or
email tkfutures@earthlink.net your platinum
and palladium future questions to be answered by a seasoned professional.
Platinum Futures and Palladium Futures Trading Facts
Platinum and palladium are both very important
metals for a multitude of industrial and personal
uses. The New York Mercantile exchange is the
world's premiere exchange dealing in these two very
important metal future contracts. Platinum futures
and palladium futures trading have become more
popular over the last several years.
Platinum and palladium are the most widely used of
the six platinum group metals (PGM); the group also
includes rhodium, ruthenium, osmium, and iridium.
They are especially valued for their catalytic
functions, their conductivity, and their resistance
to corrosion. They are essential in key
manufacturing processes in the automobile, chemical,
petroleum refining, pharmaceutical, and electronics
industries.
Contact us at tkfutures@earthlink.net for specific platinum future
or palladium future data or click here now open an
account to open your platinum futures or
palladium futures account today.
During the September 11 terrorist attacks the NYMEX
was destroyed but within days the platinum futures
and palladium futures markets were trading again.
This is a testament to the strength and reliability
of the metals future markets.
Platinum is the principal metal of the six-metal
group that bears its name; the other platinum group
metals are palladium, rhodium, ruthenium, osmium,
and iridium. All possess unique chemical and
physical qualities that make them vital industrial
materials.
Jewelry creates the largest demand for platinum,
accounting for 51%. Automotive catalysts take 29%
and chemical and petroleum refining catalysts, 13%.
Platinum is used in the computer industry and in
other high-tech electronic applications since it is
an excellent conductor of electricity, does not
corrode, and has a low reactivity with other metals.
This sector accounts for about 7% of consumption.
Platinum is among the world's scarcest metals; new
mine production totals approximately only 5 million
troy ounces a year. In contrast, gold mine
production runs approximately 82 million ounces a
year, and silver production is approximately 547
million ounces.
Supplies of platinum are concentrated in South
Africa, which accounts for approximately 80% of
supply; Russia,
11%; and North America, 6%.
Why Trade NYMEX Division Platinum Group Metals
Futures and Options?
Platinum's importance in world markets and
responsiveness to world events make NYMEX Division
platinum group metals futures and options and
important risk management tool for commercial
interests as well as an exciting, potentially
rewarding opportunity for those investors who seek
to profit by correctly anticipating platinum futures price changes.
Platinum Futures
Platinum
Futures contracts are firm commitments to make or
accept delivery of a specified quantity and quality
of a commodity during a specific month in the future
at a price agreed upon at the time the commitment is
made. Less than 3% of all metals futures contracts
traded each year result in delivery of the
underlying commodities. Instead, traders generally
offset their futures positions before their
contracts mature. The difference between the initial
purchase or sale price and the price of the
offsetting transaction represents the realized
profit or loss.
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Open an Account today
Platinum Options
Because of the global nature of the metals markets,
their prices can be volatile. The metals industry
and other commercial market participants have
learned to cope with this price uncertainty by
actively hedging against adverse price movements.
While platinum futures are among the primary risk management
tools available, options on futures open a host of
versatile, economical trading strategies.
Options on futures provide:
·
A
limit on potential loss to the buyer.
·
The ability to hedge without foregoing the benefits
of favorable price movements.
NYMEX Division Platinum Futures and Options
Trading Unit
Platinum
Futures:
50
troy ounces.
Options:
One NYMEX Division platinum futures contract.
Trading Hours
Platinum
Futures and Options:
8:20A.M. To 1:05P.M., for the open outcry session.
Trading Months
Platinum
Futures:
Trading is conducted over 15 months beginning with
the current month and the next two consecutive
months before moving into the quarterly cycle of
January, April, July, and October.
Options:
Trading is conducted in the nearest three contiguous
calendars contract months, plus the next two months
of the quarterly cycle of January, April, July, and
October.
Price Quotation
Platinum
Futures and Options:
Dollars and cents per troy ounce. For example:
$425.20 per troy ounce.
Minimum Price Fluctuation
Platinum
Futures and Options:
Price changes are in multiples of $0.10 per troy
ounce, $5 per contract.
Maximum Daily Limit
Platinum
Futures:
$25 per troy ounce ($1,250 per contract). There is
no maximum daily limit during the current delivery
month and the three business days preceding it.
Options:
No Price Limit
Last Trading Day
Platinum
Futures:
Trading terminates at the close of business on the
fourth business day prior to the end of the delivery
month.
Options:
Second Friday of the month prior to the delivery
month of the futures contract traded.
Options Strike Price Intervals
Strike prices are in increments of $10 per troy
ounce. At least seven strike prices are listed at
all times.
 Exchange
of Futures for Physicals (EFP)
 The buyer or
seller in a cash market transaction may exchange a
futures position for a physical position of
approximately equal quantity. EFPs may be used to
either initiate or liquidate a futures position.
Grade
and Quality Specifications
In
fulfillment of each contract, the seller must
deliver 50 troy ounces (±7%) of platinum not less
than .9995 fineness, with no single piece weighing
less than 10 ounces. Each contract unit may consist
of ingots or plates, each incised with the lot or
bar number, weight, grade, name, or logo of the
assayer, and symbol identifying the metal.
Margin
Requirements
Margins are required for open futures
positions.
Trading
Symbol
PL
NYMEX Division Palladium Futures
Palladium is the other
major metal of the platinum group. It is mined with
platinum, and resembles it in many respects, yet
there are important differences between the two
metals. Palladium is also produced as a by-product
of nickel mining. Russia supplies about 67% of
production, South Africa, 23%; and North America,
8%. Annual production runs approximately 8.1 million
ounces.
Automotive catalysts are the largest consuming
sector, accounting for 63% of demand. Electronic
equipment accounts for 21%; dental alloys, 12%; and
jewelry, 4%.
Trading Unit
100 troy ounces
Trading Hours
8:30A.M. to 1:00P.M. New York time.
Trading Months
Trading is normally conducted over 15 months
beginning with the current month and the next two
consecutive months before moving into the quarterly
cycle of March, June, September, and December.
Price Quotation
Dollars and cents per troy ounce. For example:
$98.85 per troy ounce
Minimum Price Fluctuation
Price changes are in multiples of $0.05 per troy
ounce ($5 per contract).
Maximum Daily Limit
$6 per troy ounce ($600 per contract). There is
no maximum daily limit during the current delivery month and the three business
days preceding it.
Delivery
Period
Delivery
notice may be given by the seller to the Exchange on
the last business day preceding the delivery month
or any subsequent business day up to the third
business day prior to the end of the delivery month.
The basis of delivery is the settlement price on the
day the delivery notice is issued.
Exchange
of Futures for Physicals (EFP)
The buyer or
seller in a cash market transaction may exchange a
futures position for a physical position of
approximately equal quantity. EFPs may be used to
initiate or terminate a futures position.
Margin
Requirements
Margins are
required for open futures positions.
Trading
Symbol
PA
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silver futures and
copper futures.
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