PRAETIR / Markets

Record silver futures SI correctly

In standard silver futures SI, a small move in the quoted price can represent a substantial dollar amount. A journal therefore needs to distinguish tick size from contract size.

Distinguish SI from other silver products

Standard SI represents 5,000 troy ounces. For ordinary outright futures transactions, one tick is USD 0.005 per ounce, or USD 25 per contract. Spread transactions can use different minimum increments. The table and calculator use the outright specification.

Seven ticks equal USD 175

In the synthetic long example, entry and exit are USD 30.000 and 30.035 per ounce. The distance 0.035 / 0.005 equals seven ticks. For one contract, that is USD 175 before fees and USD 169 after assumed costs of USD 6.

Do not round imported prices to two decimal places. Otherwise 30.035 becomes 30.04 and changes the calculated distance. Display precision must preserve SI’s required increments.

Review execution quality separately

Compare planned price, actual fill and the bid-ask spread observed when the order was placed. Record partial fills. Tick-based comparisons help assess execution; account impact also requires quantity and costs.

Preserve the traded contract month

SI is deliverable. Preserve the month code and check exchange and broker deadlines. Do not combine standard silver, smaller silver contracts and spot products under one tick-value assumption. Group them for review only after explicit normalization.

CME contract specifications · USD
ContractPoint valueTick sizeTick value
SI5,0000.00525

Sources and methodology

Sources explain concepts or the respective provider’s product descriptions. Worked examples are original and synthetic. Verify current contract specifications before use.

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