Silver Futures Quotes
The silver futures price is different than the silver options price. Commodity and futures prices like silver
prices are usually quoted the same way prices are quoted in the cash market (physical market). That is, in dollars, cents,
and sometimes fractions of a cent. Different commodities are quoted in different trading units. silver prices are quoted per
ounce. Be certain you understand the price quotation system for the particular commodity that you consider trading.
NYMEX silver futures contract is a contract for future physical delivery of 5,000 ounces of silver; however, the vast majority
of the futures positions are offset well before delivery. The NYMEX silver futures contract is priced in dollars and cents
per troy ounce. The silver futures trade in ½ cent increments, equivalent to $25.00 per contract.
Example of Futures Quote:
$9.375 or $9.37 ½ per ounce
Silver Options Quotes
The NYMEX silver options contract controls 5,000 ounces of silver based on the underlying futures
contract. 10¢ ($0.10) and 25¢ ($0.25) per ounce apart for strike prices less than or equal to $8.00; 25¢ ($0.25)
per ounce apart for strike prices greater than $8.00 and up to $15.00; and 50¢ ($0.50) per ounce apart for strike prices
greater than $15.00 during the first six nearby trading months. For all other months up to two years to expiration, increments
are 25¢ ($0.25) per ounce apart for strike prices up to $8.00; 50¢ ($0.50) per ounce apart for strike prices greater
than $8.00 and up to $15.00; and $1.00 per ounce apart for strike prices greater than $15.00. For months greater than two
years to expiration, strike increments will be $1.00.
Example of Options
0.651 means $.651
$.651 X 5,000 ounces = $3,255
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