Chat with us, powered by LiveChat Everything You Need To Know About ‘Gold Futures’ - Orion Metal Exchange

WE WILL BEAT ANY COMPETITOR'S ADVERTISED PRICE - Call Now To Confirm Product Availability 1-800-559-0088


Everything You Need To Know About ‘Gold Futures’

Everything You Need To Know About ‘Gold Futures’

The following article is created and or curated by the Orion Metal Exchange for the benefit of our followers.  We seek to provide relevant precious metals, economic and geopolitical content that can impact your retirement and savings. If you are interested in learning about precious metals investing, call 1-800-559-0088, for a FREE investor kit.

If you have been involved in the stock market (or in the financial sector for that matter), you must know that the market can fluctuate at any time.

One moment, the economy would be rapidly growing and the next thing you know, it all comes crashing down. The 2008 financial crisis is a good example of that. However, where there is risk, there’s also opportunity.

Gold Future

Although we will be specifically talking about gold futures but, the basic concept of a future contract is the same for all commodities.

A gold future allows you to purchase gold in the future at today’s price. To better understand this let’s look at the following example; suppose the current gold prices are $100. However, you know that in three months the prices will go up to $110.

You enter a future contract, which states that you will purchase gold three months later at today’s price ($100). Three months later the prices do go up however, you will be able to purchase gold at $100. This will allow you to make a profit of $10.


Some people tend to delay settlement of the contract because they are unsure if gold prices will really increase in the future. This can be a problem for all the parties involved.

Therefore, in order to counter this problem, both parties deposit a margin with a third party. It’s rate fluctuates and can be anything between 20-80%.

Over the Counter Futures

Over the Counter Future Contracts are quite different from normal future contracts since they are customizable. Not only that, they are liquid and can be quickly converted into cash in case the need arises.

In addition to that, there’s no chance of a default since the clearer is responsible for handling all the payments like margin.


Up until now, we have mentioned how trading with futures can be profitable but there’s a flip side to it as well. There have been cases in the past when people have misjudged the market and ended up facing huge losses.

Even if you do get back the amount you invested, you will lose the margin. If you had not paid the margin, you will lose your entire amount.

Another thing you want to know about futures is that at the end of the day they are derivative instruments. Majority of the payments are done on credit basis because of which they are also quite risky.

Need assistance with investment in gold and precious metals? Get in touch with us. We offer a wide range of services like secure gold and silver storage. We can also help you buy gold coins online.

Contact us at 1-800-559-0088.

Your Order Summary

A minimum total purchase amount of $10,000.00 is required to checkout. Click here to shop more

Your Details Back
Your personal data will be used to process your order, support your experience throughout this website, and for other purposes described in our privacy policy.

Once you've placed the order, our team will contact you shortly.