By using this website you agree to our cookies policy X Login Register English Chinese, Simplified Follow us: Gold spot price USD 1,790.60 Search Who we are What we do About gold Data Research News and events Home What we do Investing in gold How to buy gold Gold derivatives: futures, forwards and options Share this page: Gold derivatives: futures, forwards and options Investing in derivatives requires more knowledge of financial securities than other forms of investing and may not be suitable for all investors. Derivatives trade over-the-counter (OTC) and on exchanges. Derivatives traded on exchanges settle in a central clearing house that matches buyers and sellers. OTC derivatives are bilateral contracts that have more flexible structures but include additional counterparty risk. While there are many types of derivatives, the most common ones include futures, forwards and options. These contracts often allow settlement in-kind, as well as in-cash. Derivatives trade on margin. The initial margin – or cash deposit paid to the broker – is a fraction of the price of the underlying contract. Consequently, investors can achieve notional gold value considerably greater than their initial cash outlay. While this leverage can increase return-on-investment, it also increases the chance for significant losses in the event of an adverse price movement in gold. Gold.org does not offer investment advice This information is provided solely for general information and educational purposes. It is not, and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell. See also ‘Terms and conditions’. Investing in gold Why invest in gold? How to buy gold Bars and coins Gold-backed ETFs and similar Allocated accounts Internet Investment Gold Gold derivatives: futures, forwards and options Gold mining stocks Drivers of gold price performance Official institutions Market infrastructure Our history Contact us Sitemap Modern slavery statement Cookies Privacy Terms and conditions Accessibility COVID-19 statement Human rights statement London - Head office World Gold Council - Head Office 7th Floor, 15 Fetter Lane, London EC4A 1BW United Kingdom info@gold.org +44 207 826 4700 New York World Gold Council 685 Third Avenue 27th Floor New York NY 10017 United States of America info@gold.org +1 212 317 3800 Singapore World Gold Council (Singapore) Pte Ltd 10 Collyer Quay Level 37, Ocean Financial Centre Singapore 049315 info@gold.org +65 6808 6749 Mumbai World Gold Council (India) Private Ltd (CIN: U74900MH2011FTC224567) Registered office: B-6/3, 6th floor Laxmi Towers C-25 Bandra Kurla Complex Bandra (East) Mumbai 400051 India info@gold.org +91 22 6157 9100 Shanghai World Gold Council Room 4805 B No. 1717 Nanjing West Road Wheelock Square Jing’an District 200040 Shanghai People's Republic of China info@gold.org +86 21 2226 1188 Beijing World Gold Council Room 1009, 10/F, Beijing Fortune Building, No. 5 North Dongsanhuan Road, Chaoyang District, 100004 Beijing, People’s Republic of China info@gold.org +86 10 8592 5000 ©2021 World Gold Council 沪ICP备16026324号-1 公安备案号31010602004116