Other precious metals

traderjb

traderjb

What has been everyone's experience in trading Platinum or Palladium at the NYMEX? I've traded gold and silver in the past, but never these out of fear of liquidity issues. Any input would be most appreciated.
 
They are capable of moving quite a bit. Spreads are fairly narrow during US regular trading hours. Other times the spread for Platinum may be 500 usd and for palladium 200 usd. I trade longer time frames (weeks) and its not a problem for me.

Sridhar
 
Never traded Palladium, Have traded Platty a few times before. I was always spread gold against though, so never a true outright. It's a big contract and the liquidity isn't great and it looks like it can get pushed around pretty well. It looks to catch enormous trends so I wouldn't try and tic-fuck it.
 
wow..thanks gang. I was looking into spread trading, against gold or silver. Any thoughts? Do you get the margin credit?
 
There is a NYMEX credit of 70% I believe but most clearing firms won't allow it. (just my experience) The "correct" ratio is 2:1 that gives you about 24 k in margin to deal with. There are certainly historical relationships between gold and platty. I'm not too sure about silver, I'm sure there is but I've never looked into it. Be careful with it as it's incredibly volatile. Platty and Gold were at parity a few months ago. Plat is now 100 plus positive to it.
 
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