Gold futures: the contract and the exposure

Start with the contract unit

The standard COMEX Gold futures contract, commonly identified by GC, represents 100 troy ounces. The contract specification defines more than a name: it sets the quantity and other terms of the instrument. This size should not be applied automatically to a micro contract, an exchange-traded share or a broker’s separately defined product. Read the specification for the exact instrument before interpreting a price movement. [1]

A small move across a large quantity

A hypothetical US$10-per-ounce move on a 100-ounce position changes its value by US$1,000 before costs: 10 multiplied by 100. For a long position, a rise is favourable and a fall is adverse; a short position reverses that direction. The arithmetic is an exposure example, not a forecast, entry price or recommendation. The key point is that the quantity multiplies the price change.

Margin is performance security

Futures margin is collateral supporting the position, not a down payment that purchases a fraction of a bar. Initial margin is required to establish a position; maintenance requirements govern the minimum equity that must be maintained. Adverse moves can create a need for additional funds or lead to position reduction or liquidation. Requirements can change, so a single fixed margin amount should not be treated as a permanent feature of the contract. [2]

The deposit is not a loss ceiling

A position can lose more than its initial margin. That is why contract size, liquidity, cash demands and contractual obligations need to be understood together. A stop order does not convert the contract into a guaranteed maximum-loss product. Before studying the direction of a price chart, identify the full quantity at risk and how losses are settled. A small visible deposit can accompany a much larger economic commitment. [2] [3]

FOLLOW THE EVIDENCE

Sources & further reading

Sources checked 14 November 2026. The artwork is illustrative. Reference organisations do not endorse this website. Financial examples are educational, not investment recommendations.