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Zinc Futures Trading Basics
Zinc futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of zinc (eg. 25 tonnes) at a predetermined price on a future delivery date.
Zinc Futures Exchanges
You can trade Zinc futures at London Metal Exchange (LME).
LME Zinc futures prices are quoted in dollars and cents per metric ton and are traded in lot sizes of 25 tonnes (55116 pounds).
| Exchange & Product Name | Symbol | Contract Size | Initial Margin |
| LME Zinc Futures (Price Quotes) | ZS | 25 tonnes (Full Contract Spec) | USD 5,000 (approx. 17%) (Latest Margin Info) |
Zinc Futures Trading
Consumers and producers of zinc can manage zinc price risk by purchasing and selling zinc futures. Zinc producers can employ a short hedge to lock in a selling price for the zinc they produce while businesses that require zinc can utilize a long hedge to secure a purchase price for the commodity they need.
Zinc 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 zinc price movement. Speculators buy zinc futures when they believe that zinc prices will go up. Conversely, they will sell zinc futures when they think that zinc prices will fall.
Related Articles
- Buying Zinc Futures to Profit from a Rise in Zinc Prices
- Selling Zinc Futures to Profit from a Fall in Zinc Prices
- Zinc Options Basics
- Zinc Call Option Trading Basics
- Zinc Put Option Trading Basics
- Hedging Against Rising Zinc Prices with Zinc Futures
- Hedging Against Falling Zinc Prices with Zinc Futures
How to Start Trading Zinc Futures
To buy or sell zinc 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.
