Introduction
Gold futures trading can feel overwhelming if you’re unfamiliar with the terminology. This glossary breaks down 20 essential gold futures terms in simple language—perfect for beginners who want to learn the basics before placing their first trade.
Gold Futures Glossary: 20 Must-Know Terms
1. Gold Futures
A standardized contract to buy or sell gold at a fixed price on a future date, traded on exchanges like COMEX.
2. COMEX
Short for “Commodity Exchange,” COMEX is part of the CME Group and is the primary U.S. market for trading gold futures.
3. GC (Symbol)
The ticker symbol used to identify gold futures contracts on COMEX.
4. Contract Size
The amount of gold represented by one futures contract. For standard GC contracts, it’s 100 troy ounces.
5. Tick Size
The smallest price movement a gold futures contract can make, which is $0.10 per ounce.
6. Tick Value
The dollar amount each tick is worth. For gold futures, one tick equals $10 per contract.
7. Initial Margin
The amount you must deposit to open a gold futures position—typically a fraction (~5%) of the total contract value.
8. Maintenance Margin
The minimum account balance you need to keep a position open. Falling below this triggers a margin call.
9. Leverage
The ability to control a large contract with a small margin deposit. In gold futures, leverage can be 20:1 or more.
10. Expiration Month
The month when the futures contract settles. Gold futures typically expire in Feb, Apr, Jun, Aug, Oct, Dec.
11. Settlement
The process of closing a contract at expiration. Gold futures are physically settled unless closed beforehand.
12. Roll Over
Closing a near-month contract and opening a later one to avoid delivery and stay in the market.
13. Go Long
Buying a gold futures contract with the expectation that gold prices will rise.
14. Go Short
Selling a gold futures contract to profit from falling gold prices.
15. Stop-Loss Order
An automated order to exit a trade when price moves against you, used to manage risk.
16. Take-Profit Order
A preset order to exit a trade at a profitable level.
17. Volume
The number of contracts traded in a given session. Higher volume = more liquidity.
18. Open Interest
The number of outstanding contracts that have not been closed or delivered.
19. Volatility
A measure of how much and how quickly prices move. High volatility increases both risk and reward potential.
20. Speculator vs. Hedger
A speculator aims to profit from price changes. A hedger uses gold futures to offset risk (e.g., a gold mining company).
How to Use This Glossary
- Bookmark this page to revisit terms as you learn
- Use these definitions while reading charts, broker platforms, or trading news
- Combine with practical guides like How to Start Trading Gold Futures
Understanding these basic terms gives you a strong foundation to trade confidently and reduce costly mistakes.
📌 FAQs
1. What is a gold futures contract?
A standardized agreement to buy or sell gold at a future date, traded on COMEX.
2. What does the symbol GC stand for?
GC is the ticker symbol for gold futures on the COMEX exchange.
3. How much is one tick in gold futures?
One tick = $0.10/oz = $10 per contract.
4. What is the typical margin required?
Around $16,500, depending on market conditions and broker requirements.
5. What’s the difference between a speculator and a hedger?
Speculators aim to profit; hedgers use futures to protect against price risk.
