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Tin Futures Trading Basics
Tin futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of tin (eg. 5 tonnes) at a predetermined price on a future delivery date.
Tin Futures Exchanges
You can trade Tin futures at London Metal Exchange (LME).
LME Tin futures prices are quoted in dollars and cents per metric ton and are traded in lot sizes of 5 tonnes (11023 pounds).
| Exchange & Product Name | Symbol | Contract Size | Initial Margin |
| LME Tin Futures (Price Quotes) | SN | 5 tonnes (Full Contract Spec) | USD 11,700 (approx. 20%) (Latest Margin Info) |
Tin Futures Trading
Consumers and producers of tin can manage tin price risk by purchasing and selling tin futures. Tin producers can employ a short hedge to lock in a selling price for the tin they produce while businesses that require tin can utilize a long hedge to secure a purchase price for the commodity they need.
Tin futures are also traded by speculators who assume the price risk that hedgers try to avoid in return for a chance to profit from favorable tin price movement. Speculators buy tin futures when they believe that tin prices will go up. Conversely, they will sell tin futures when they think that tin prices will fall.
Related Articles
- Buying Tin Futures to Profit from a Rise in Tin Prices
- Selling Tin Futures to Profit from a Fall in Tin Prices
- Tin Options Basics
- Tin Call Option Trading Basics
- Tin Put Option Trading Basics
- Hedging Against Rising Tin Prices with Tin Futures
- Hedging Against Falling Tin Prices with Tin Futures
How to Start Trading Tin Futures
To buy or sell tin futures, you need to open a trading account with a broker that handles futures trades. Most online brokerages out there only deal with stocks and stock options. Only a few such as optionsXpress lets you trade futures and futures options as well. optionsXpress also provide a virtual trading platform where beginners can try out futures and options trading in real market conditions without using real money.
