Metal Futures Trading

Overview

vCap Futures is strives to be a leading provider of futures brokerage services in the metal futures and options arena. Our clients include speculators, hedge funds, institutions, commodity hedgers, principal producers, processors, consumers, and dealers of the traded metals in all geographical regions. vCap Futures provides its clients with access to high-end trading technology for electronic or pit-traded order execution, metal market-making, trade clearing, and contract administration.

With vCap Futures you can access exchange traded as well as over-the-counter products – from the standard to the exotic.

• Gold Futures
• Silver Futures
• Copper Futures
• Platinum Futures
• Aluminum Futures
• Palladium Futures
• Metal Forward swaps and OTC options
• Metal Warrant swaps
• Inventory management
• Metal Arbitrage swaps and options
• Physical trading and financing

Metal Futures

Metal futures provide producers, manufacturers, traders and speculators with cost-efficient trading and risk management opportunities. The contracts are firm commitments to make or accept delivery of a specified quantity and quality of a commodity during a specific month in the future at a price agreed upon at the time the commitment is made. However, a very small percentage all metals futures contracts traded result in delivery of the underlying commodities. Instead, investors offset their futures positions before their contracts mature.

For most people, buying and storing the physical form (i.e. coins, bullions, bars) is not a practical choice as an investment. Businesses and individual traders trade metal futures for different reasons, but the primary goal is to profit from, or protect themselves from changes in the price of the underlying metals. Producers and manufacturers, such as companies involved in mining or industrial and manufacturing industries, utilize metal futures for managing or mitigating risk and hedging raw material costs and finished product revenues against adverse price fluctuations. Individual traders or speculators trade metal futures to speculate on the commodity price fluctuations.

Advantages

We believe trading metal futures offer a number of advantages:

• The contracts are liquid financial instruments that are standardized by quality and quantity.
• They offers cost-efficient trading and risk management opportunities.
• Metal futures prices are widely and instantaneously disseminated, serving as world reference prices.
• Metal futures markets allow hedgers and investors to trade anonymously through futures brokers.
• The depth of the market allows the contracts to be easily liquidated prior to required receipt or delivery of the underlying commodity.
• While metal futures contracts are seldom used for delivery, if delivery is required, performance is guaranteed. Counterparty risk is absent from transactions executed on the exchanges.
• Contract performance in the metal futures and options contract is supported by a strong financial system, backed by exchange clearing members, including some of the most well-respected names in the banking and financial services industries.
• The exchanges offers safe, fair, and orderly markets protected by its rigorous financial standards and surveillance procedures.

CBOT Metal Futures