Trading Silver on Comex or E-CBOT?

Discussion in 'Commodity Futures' started by PohPoh, Jun 24, 2008.

  1. Any preferences, or major differences??
  2. comex much more liquid, margin higher. Cbot lower margin but not as liquid
  3. hmmm..
    why would the margin be higher on the comex?
    are the contracts not fungible?
  4. ess1096


    Don't think of it as higher margin on Comex.
    More like the margins on CBOT are lower as an incentive to trade with much lower liquidity.
    I prefer to pay up for the liquidity.
  5. i just looked at the margin sheets and yeah comex 6075 initial and 4500 spec. cbot is 4050 initial and 3000 spec.
  6. so i guess they ain't fungible...

    thanks guys..
  7. The CBOT may have greatly reduced exchange fees as an incentive to trade their contracts. If you expect to generate a lot of trades, it may be a better way to go.
  8. Magna

    Magna Administrator

    This varies from broker to broker, but on IB the Silver margin requirements (large contract) for the eCBOT are 20% higher than for the NYMEX (Comex).

    Currently for ZI (5000 oz) on eCBOT:
    Intraday Initial -- 8,100
    Overnight Maintenance -- 6,000

    Currently for SI (5000 oz) on NYMEX:
    Intraday Initial -- 6,750
    Overnight Maintenance -- 5,000

    And as far as liquidity they're not even in the same ballpark, the SI blows away the ZI by many multiples.
  9. funny ... it used to be the other way around ( margin wise )
  10. From what I recall the contracts are 80% fungible from a cbot stand point.

    There are four silver contracts and I think you should have them all on the screen, similar to how equity traders have arca, island etc on their screen.

    Just so I don't get accused of anything I have research extensively silver trading but have yet to make a trade
    #10     Jun 26, 2008