Palladium Futures Trading Basics

Best Binary Options Brokers 2020:
  • Binarium

    Best Binary Options Broker 2020!
    Free Trading Education!
    Free Demo Account!
    Perfect for Beginners!

  • Binomo

    2 place in the ranking!

Palladium Futures Trading Basics

Palladium futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of palladium (eg. 100 troy ounces) at a predetermined price on a future delivery date.

Some Facts about Palladium

Palladium is a hard, silver-white metal which is usually found alloyed with other metals of the platinum group in platinum ores. Like platinum, palladium has excellent catalytics properties and are often used as catalyst, such as in catalytic converters on automobiles. [Click here to learn about the main uses of Palladium. ]

Palladium Futures Exchanges

You can trade Palladium futures at New York Mercantile Exchange (NYMEX) and Tokyo Commodity Exchange (TOCOM).

NYMEX Palladium futures prices are quoted in dollars and cents per ounce and are traded in lot sizes of 100 troy ounces .

TOCOM Palladium futures are traded in units of 500 grams (16.08 troy ounces) and contract prices are quoted in yen per gram.

Exchange & Product Name Symbol Contract Size Initial Margin
NYMEX Palladium Futures
(Price Quotes)
PA 100 troy ounces
(Full Contract Spec)
USD 2,750 (approx. 15%)
(Latest Margin Info)
TOCOM Palladium Futures
(Price Quotes)
500 grams
(Full Contract Spec)
JPY 60,000 (approx. 23%)
(Latest Margin Info)

Palladium Futures Trading Basics

Consumers and producers of palladium can manage palladium price risk by purchasing and selling palladium futures. Palladium producers can employ a short hedge to lock in a selling price for the palladium they produce while businesses that require palladium can utilize a long hedge to secure a purchase price for the commodity they need.

Palladium futures are also traded by speculators who assume the price risk that hedgers try to avoid in return for a chance to profit from favorable palladium price movement. Speculators buy palladium futures when they believe that palladium prices will go up. Conversely, they will sell palladium futures when they think that palladium prices will fall.

Learn More About Palladium Futures & Options Trading

You May Also Like

Continue Reading.

Buying Straddles into Earnings

Buying straddles is a great way to play earnings. Many a times, stock price gap up or down following the quarterly earnings report but often, the direction of the movement can be unpredictable. For instance, a sell off can occur even though the earnings report is good if investors had expected great results. [Read on. ]

Writing Puts to Purchase Stocks

If you are very bullish on a particular stock for the long term and is looking to purchase the stock but feels that it is slightly overvalued at the moment, then you may want to consider writing put options on the stock as a means to acquire it at a discount. [Read on. ]

What are Binary Options and How to Trade Them?

Also known as digital options, binary options belong to a special class of exotic options in which the option trader speculate purely on the direction of the underlying within a relatively short period of time. [Read on. ]

Investing in Growth Stocks using LEAPS® options

If you are investing the Peter Lynch style, trying to predict the next multi-bagger, then you would want to find out more about LEAPS® and why I consider them to be a great option for investing in the next Microsoft®. [Read on. ]

Effect of Dividends on Option Pricing

Cash dividends issued by stocks have big impact on their option prices. This is because the underlying stock price is expected to drop by the dividend amount on the ex-dividend date. [Read on. ]

Bull Call Spread: An Alternative to the Covered Call

As an alternative to writing covered calls, one can enter a bull call spread for a similar profit potential but with significantly less capital requirement. In place of holding the underlying stock in the covered call strategy, the alternative. [Read on. ]

Dividend Capture using Covered Calls

Some stocks pay generous dividends every quarter. You qualify for the dividend if you are holding on the shares before the ex-dividend date. [Read on. ]

Leverage using Calls, Not Margin Calls

To achieve higher returns in the stock market, besides doing more homework on the companies you wish to buy, it is often necessary to take on higher risk. A most common way to do that is to buy stocks on margin. [Read on. ]

Day Trading using Options

Day trading options can be a successful, profitable strategy but there are a couple of things you need to know before you use start using options for day trading. [Read on. ]

What is the Put Call Ratio and How to Use It

Learn about the put call ratio, the way it is derived and how it can be used as a contrarian indicator. [Read on. ]

Understanding Put-Call Parity

Put-call parity is an important principle in options pricing first identified by Hans Stoll in his paper, The Relation Between Put and Call Prices, in 1969. It states that the premium of a call option implies a certain fair price for the corresponding put option having the same strike price and expiration date, and vice versa. [Read on. ]

Understanding the Greeks

In options trading, you may notice the use of certain greek alphabets like delta or gamma when describing risks associated with various positions. They are known as “the greeks”. [Read on. ]

Valuing Common Stock using Discounted Cash Flow Analysis

Since the value of stock options depends on the price of the underlying stock, it is useful to calculate the fair value of the stock by using a technique known as discounted cash flow. [Read on. ]

Palladium Jun ’20 (PAM20)

metals Futures News

Bob Hunt – The Pattern Trapper Fri Apr 3, 6:35PM CDT

The Trend Trader helps to identify the current trend status of your favorite futures markets. It not only helps us to stay on the right side of market.

Kevin J. Davey – Fri Apr 3, 2:36PM CDT

Based on 8 algo trading strategies developed with the Strategy Factory approach and 4 indicator based algo strategies, the current position bias for Gold.

Arkadiusz Sieron – Sunshine Profits Fri Apr 3, 12:56PM CDT

What do chess and the epidemic have in common? What is the difference between linear and exponential growth? Should we really worry about this pandemic.

Przemyslaw Radomski – Sunshine Profits Fri Apr 3, 12:44PM CDT

Two important things happened yesterday. And no, the ridiculous rally in crude oil wasnt one of them. Yes, it was ridiculous, because it was clearly.

Paul Rejczak – Sunshine Profits Fri Apr 3, 12:36PM CDT

The gold futures contract has gained 2.91% on Thursday. It retraced some of the recent decline, as the price got back above $1,600 mark again. The.

Edgard Cabanillas – Alpine Trading LLC Thu Apr 2, 10:55PM CDT

You heard it here first!

Stocks: 15 20 minute delay (Cboe BZX is real-time), ET. Volume reflects consolidated markets. Futures and Forex: 10 or 15 minute delay, CT.

© 2020, Inc. All Rights Reserved.

The All Futures page lists all open contracts for the commodity you’ve selected. Intraday futures prices are delayed 10 minutes, per exchange rules, and are listed in CST. Overnight (Globex) prices are shown on the page through to 7pm CST, after which time it will list only trading activity for the next day. Once the markets have closed, the Last Price will show an ‘s’ after the price, indicating the price has settled for the day. The page will always show prices from the latest session of the market.

End-of-Day prices are updated at 8pm CST each evening, and includes the previous session volume and open interest information.

The Cash Contract is listed as the first contract at the top of the page.

Data Updates

For pages showing Intraday views, we use the current session’s data, with new price data appear on the page as indicated by a “flash”. Stocks: 15 minute delay (Cboe BZX data for U.S. equities is real-time), ET. Volume reflects consolidated markets. Futures and Forex: 10 or 15 minute delay, CT.

The list of symbols included on the page is updated every 10 minutes throughout the trading day. However, new stocks are not automatically added to or re-ranked on the page until the site performs its 10-minute update.

Page Sort

Pages are initially sorted in a specific order (depending on the data presented). You can re-sort the page by clicking on any of the column headings in the table.


Most data tables can be analyzed using “Views.” A View simply presents the symbols on the page with a different set of columns. Site members can also display the page using Custom Views. (Simply create a free account, log in, then create and save Custom Views to be used on any data table.)

Each View has a “Links” column on the far right to access a symbol’s Quote Overview, Chart, Options Quotes (when available), Barchart Opinion, and Technical Analysis page. Standard Views found throughout the site include:

    Main View: Symbol, Name, Last Price, Change, Percent Change, High, Low, Volume, and Time of Last Trade.

Technical View: Symbol, Name, Last Price, Today’s Opinion, 20-Day Relative Strength, 20-Day Historic Volatility, 20-Day Average Volume, 52-Week High and 52-Week Low.

Performance View: Symbol, Name, Last Price, Weighted Alpha, YTD Percent Change, 1-Month, 3-Month and 1-Year Percent Change.

  • Fundamental View: Available only on equity pages, shows Symbol, Name, Weighted Alpha, Market Cap, P/E Ratio. Earnings Per Share, Beta, Return on Equity, and Price/Sales
  • Data Table Expand

    Unique to, data tables contain an “expand” option. Click the “+” icon in the first column (on the left) to “expand” the table for the selected symbol. Scroll through widgets of the different content available for the symbol. Click on any of the widgets to go to the full page.

    Horizontal Scroll on Wide Tables

    Especially when using a custom view, you may find that the number of columns chosen exceeds the available space to show all the data. In this case, the table must be horizontally scrolled (left to right) to view all of the information. To do this, you can either scroll to the bottom of the table and use the table’s scrollbar, or you can scroll the table using your browser’s built-in scroll:

    • Left-click with your mouse anywhere on the table.
    • Use your keyboard’s left and right arrows to scroll the table.
    • Repeat this anywhere as you move through the table to enable horizontal scrolling.

    Also unique to Barchart, FlipCharts allow you to scroll through all the symbols on the table in a chart view. While viewing FlipCharts, you can apply a custom Chart Template, further customizing the way you can analyze the symbols. FlipCharts are a free tool available to Site Members.


    Download is a free tool available to Site Members. This tool will download a .csv file for the View being displayed. For dynamically-generated tables (such as a Stock or ETF Screener) where you see more than 1000 rows of data, the download will be limited to only the first 1000 records on the table. For other static pages (such as the Russell 3000 Components list) all rows will be downloaded.

    Free members are limited to 5 downloads per day, while Barchart Premier Members may download up to 100 .csv files per day.

    Should you require more than 100 downloads per day, please contact Barchart Sales at 866-333-7587 or email [email protected] for more information or additional options about historical market data.

    cmdtyNewswires Commentary

    cmdtyNewswires is Ag market commentary for Grains and Oilseeds, Energy, Gold, Silver, Cocoa, Coffee, and Sugar markets.

    Futures News

    View the latest top stories from our trusted partners, with a focus on today’s futures and commodity markets.

    Insight On Palladium In 2020: Read This & Start Trading Now

    Sharing is caring!

    Last Updated on December 18, 2020

    4 Reasons You Might Invest in Palladium

    Investors should consider purchasing palladium for the following reasons:

    1. Bet on Automobile Demand
    2. Bet on Supply Constraints
    3. Bet on Investment Demand
    4. Portfolio Diversification

    Is Palladium a Safe Bet Because of the Auto Industry?

    The automobile market is the most critical industry for palladium.

    Investing in the commodity is a way to bet on surging demand for automobiles in emerging market countries such as China and India.

    BYD Qin Hybrid Vehicle in China via Wikimedia

    Similarly, the low-interest rate environment in the United States and Europe should bode well for the automobile industry. Low rates mean affordable access to credit markets. Since most buyers finance automobile purchases, rates play an important role in determining demand.

    As long as rates remain near historically low levels, demand for cars and the catalytic converters that go in them should remain strong.

    Betting on Supply Constraints

    With three-quarters of the global supply of palladium coming from two countries, there is the real possibility for supply shocks in palladium production.

    The United States is a large importer of palladium and has a recent history of tensions with Russia. Should Russia curtail its exports of palladium, the price of the metal could soar.

    Similarly, labor disputes in South Africa or new mining regulations could lead to supply disruptions and higher prices.

    Speculating on Investment Demand

    Investment products focused on palladium are relatively new compared to other precious metals such as gold and silver.

    As more traders discover the favorable supply/demand fundamentals for this commodity, palladium prices could rise. The thin liquidity in the market could exaggerate price gains.

    Diversify Your Portfolio

    Most traders have the vast majority of their assets in stocks and bonds. Commodities such as palladium provide a way to diversify and reduce the overall risk of portfolios.

    Should I Invest in Palladium?

    Traders who want to invest in palladium should consider purchasing it along with a basket of commodities that includes other precious metals (i.e., gold and silver), base metals (i.e., copper, nickel, lead and zinc), agricultural commodities (i.e., dairy, meats and grains) and energy.

    Purchasing a basket of commodities helps protect traders from the volatility of any individual commodity. It also adds overall diversification to a stock and bond portfolio.

    There are three specific trends that could raise palladium prices in the years ahead:

    1. Chinese Demand
    2. Investment Demand
    3. Energy Costs

    Chinese Demand

    China is the top consumer of palladium and could increase its consumption in the years ahead. The Chinese economy has experienced a recent slowdown, although there are signs this may be coming to an end. Investing in palladium is one way to bet on a resurging Chinese economy.

    Investment Demand

    The proliferation of ETFs has exposed more traders to precious metals. As the gold and silver trade becomes crowded, traders could seek new ways to gain exposure to precious metals. Palladium could benefit from this trend.

    Energy Costs

    Higher energy costs make mining an increasingly challenging business. As fuel and electricity costs rise, more mining operations could close or consolidate. This should produce higher palladium prices.

    However, traders should also consider the risks of investing in palladium:

    1. A Global Recession: A global recession could weaken Chinese and US automobile demand.
    2. Cheaper Substitutes: Cheaper substitutes could replace demand for palladium in catalytic converters.
    3. Global Economic or Political Control: Global economic or political turmoil could strengthen the US dollar and weaken demand for precious metals and other commodities.

    What Do the Experts Think About Palladium?

    Most analysts who follow the palladium market pay attention to its price relationship with platinum. One expert sees reasons for optimism about the palladium market compared to platinum:

    Palladium is powering on with the demand for more vehicles. There’s more need for palladium, which cannot be reclaimed as easily or as often from junked automobiles as platinum.

    George Gero, managing director, RBC Wealth Management, New York

    However, another leading analyst sees reasons for caution. He believes that while the rising market share of gasoline-powered vehicles is a positive, the future presents challenges for palladium prices:

    Diesel’s share of the European auto market is falling and the flip side of that is gasoline’s share is rising. Chinese car sales supported palladium, but there will a reality check as tax incentives are removed. In Europe and the United States, car sales look to be peaking.

    Julius Baer analyst Carsten Menke

    How Can I Invest in Palladium?

    Investors have several options for gaining exposure to palladium prices:

    Palladium Trading and Investing Methods Compared

    Method of Investing Complexity Rating (1 = easy, 5=hard) Storage Costs? Security Costs? Expiration Dates? Management Costs? Leverage? Regulated Exchange?
    Palladium Bullion 1 Y Y N N N N
    Palladium Futures 5 N N Y N Y Y
    Palladium Options 5 N N Y N Y Y
    Palladium ETFs 2 Y N N Y N Y
    Palladium Shares 2 N N N N Y Y
    Palladium CFDs 3 N N N N Y Y

    Palladium Bullion

    Physical bullion, such as bars or coins, is the most direct way to invest in palladium. However, investing in bullion requires a secure storage facility. Ultimately, the cost of this storage and the low value-to-weight ratio could make holding physical palladium an impractical proposition.

    Palladium Coin via Wikimedia

    Palladium Futures

    The Chicago Mercantile Exchange (CME) offers a contract on palladium that settles into 100 troy ounces of the commodity.

    The contracts trades globally on the CME Globex electronic trading platform and have a variety of expiration months.

    Futures are a derivative instrument through which traders make leveraged bets on commodity prices. If prices decline, traders must deposit additional margin in order to maintain their positions. At expiration, the contracts are physically settled by delivery of palladium.

    Investing in futures requires a high level of sophistication since factors such as storage costs and interest rates affect pricing.

    Palladium Options on Futures

    The CME offers an American-style options contract on Palladium Futures.

    Options are also a derivative instrument that employ leverage to invest in commodities. As with futures, options have an expiration date. However, options also have a strike price, which is the price above which the option finishes in the money.

    Options buyers pay a price known as a premium to purchase contracts. An options bet succeeds only if the price of palladium futures rises above the strike price by an amount greater than the premium paid for the contract. Therefore, options traders must be right about the size and timing of the move in palladium futures to profit from their trades.

    Palladium ETFs

    These financial instruments trade as shares on exchanges in the same way that stocks do. The ETFS Physical Palladium Shares (NYSEARCA: PALL) invests in physical palladium that it stores in secure vaults.

    Shares of Palladium Companies

    There are many publicly traded companies that have some exposure to palladium prices.

    Best Binary Options Brokers 2020:
    • Binarium

      Best Binary Options Broker 2020!
      Free Trading Education!
      Free Demo Account!
      Perfect for Beginners!

    • Binomo

      2 place in the ranking!

    While investing in companies can be a leveraged way to gain exposure to palladium prices, many of these companies have significant exposure to other precious metals. In addition, factors such as company management and the overall stock market can also affect these investments:

    ETFS Physical Palladium Shares
    Company Current Price Overview Listings Founded Number of Employees Interesting Fact
    Norilsk Nickel
    The American depositary receipts of the world’s largest palladium producer OTC, London, Frankfurt, Berlin 1993 96,193+ The nickel deposits of Norilsk-Talnakh are the largest nickel-copper-palladium deposits in the world Anglo American Platinum Ltd South African company engaged in the production and sale of platinum group metals. OTC 1995 24,945 In August 2007, British charity War on Want published a report accusing Anglo American Platinum’s parent company Anglo American of profiting from the abuse of people in the developing countries in which the company operates North American Palladium Ltd Canadian company that explores for palladium, platinum, gold, nickel, copper, and other metals. Toronto 1993 201-500 1 of only 2 North American based palladium or platinum producers Platinum Group Metals Ltd Canadian company that explores for and develops precious and base metal properties in South Africa and Canada NYSE 2002 111 The Company is focused on exploration and development of platinum. It has operations in South Africa and Canada


    Illustrative prices only. CFD Service. 80.6% lose money.

    One way to invest in palladium is through the use of a contract for difference (CFD) derivative instrument. CFDs allow traders to speculate on the price of palladium. The value of a CFD is the difference between the price of palladium at the time of purchase and its current price.

    Some regulated brokers worldwide offer CFDs on palladium. Customers deposit funds with the broker, which serve as margin. The advantage of CFDs is that traders can have exposure to palladium prices without having to purchase shares, ETFs, futures or options.

    Illustrative prices only.

    One of the leading CFD brokers for trading agricultural commodities, like palladium, is Plus 500. Here’s why:

    • No commission on trades (other charges may apply)
    • Free demo account
    • Easy to use (mobile-friendly) platform
    • Industry-leading risk management tools
    • Trade palladium and hundreds of other markets
    • Your funds are safe – publicly listed company regulated by the UK’s Financial Conduct Authority and Cyprus’ Securities and Exchange Commission

    Start Trading at Important: Your capital is at risk. CFD services are suitable for experienced traders only.

    One of the leading CFD brokers for trading metal commodity CFDs, like palladium, is Plus 500. Here’s why:

    • No commission on trades (other charges may apply)
    • Free demo account
    • Easy to use (mobile-friendly) platform
    • Industry-leading risk management tools
    • Trade palladium and hundreds of other CFDs
    • Your funds are safe – publicly listed company regulated by the UK’s Financial Conduct Authority and Cyprus’ Securities and Exchange Commission

    Important: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail trader accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

    Best Binary Options Brokers 2020:
    • Binarium

      Best Binary Options Broker 2020!
      Free Trading Education!
      Free Demo Account!
      Perfect for Beginners!

    • Binomo

      2 place in the ranking!

    Like this post? Please share to your friends:
    Binary Options Online Trading
    Leave a Reply

    ;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: