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.
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|
(Full Contract Spec)
|USD 5,000 (approx. 17%)|
(Latest Margin Info)
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.
To buy or sell futures, you need a broker that can handle futures trades.
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