Table of contents
- Important note
- What are silver futures?
- SI futures: the correct terminology
- SI vs SIL vs QI vs SIC
- Tick value and dollar risk
- Why trade silver futures?
- How does the silver price move?
- Silver vs gold
- Margin and leverage
- Physical delivery and rollover
- Futures vs ETFs, stocks and CFDs
- Trading hours
- Strategies for silver futures
- Example trades
- Common mistakes
- Broker and tools
- Glossary
- Sources
- Conclusion
- FAQ
Quick summaryWhat you should know about silver futures
- SI is the standard contract for COMEX Silver Futures. One contract represents 5,000 troy ounces of silver.
- SIL is Micro Silver Futures at 1,000 troy ounces, a fifth of SI, but still a large contract for many retail accounts.
- SIC is 100-Ounce Silver Futures. The contract is financially settled and gives far more precise risk control for small accounts.
- SI and SIL are physically deliverable. Retail traders should normally close or roll well ahead of when delivery becomes relevant.
- Silver is affected by both gold, real rates and the dollar, and by industrial demand from electronics, solar energy, power grids and technology.
- Margin is not risk. The real risk is determined by contract size, stop-loss, volatility and the number of contracts.
Silver isn't just cheaper gold
Silver often trades alongside gold when the market is focused on rates, the dollar, inflation and geopolitical unrest. At the same time, silver is an important industrial commodity in electronics, solar cells, power grids, battery technology, the car industry and advanced computing.
That combination makes the market more complex than gold, but also interesting for traders who want to follow macro, commodity flows, industrial demand and technical structure all at once.
Important note
Best Futures is not an investment adviser, brokerage, tax adviser or financial adviser. This article is general information for European traders who want to understand silver futures, contract types and risk.
Silver futures carry a high level of risk. Silver can move quickly on macro news, rate decisions, dollar moves, physical demand, industrial activity and speculative positioning. Because futures use margin, gains and losses can become significantly larger than the amount originally tied up as collateral.
- Know which contract you're trading.
- Calculate tick value and dollar risk before entry.
- Check when the contract expires.
- Understand whether the contract is physically deliverable or financially settled.
- Use stop-loss and position size based on maximum risk, not free margin.
What are silver futures?
Silver futures are standardised exchange-listed contracts that give exposure to the future price of silver. The contracts trade on COMEX, part of CME Group.
When you buy a silver futures contract, you go long and profit if the silver price rises. When you sell a contract short, you profit if the price falls. You don't necessarily own physical silver while trading, but some contracts can end in physical delivery if the position is held too long into expiry.
| Participant | Why they trade |
|---|---|
| Mining companies | Hedge future selling prices |
| Industrial companies | Reduce risk tied to silver as an input |
| Refiners and bullion dealers | Manage physical inventory and price risk |
| Banks and commodity houses | Provide liquidity, clearing and risk management |
| Hedge funds and CTAs | Trade macro, trend and relative value |
| Retail traders | Trade price moves intraday or over several days |
SI futures: the correct terminology
SI is the ticker for standard COMEX Silver Futures. It's therefore most precise to write SI futures when you mean the standard 5,000 troy ounce contract.
The price is quoted in US dollars per troy ounce. The minimum price movement in the standard contract is $0.005 per ounce. That means:
$0.005 × 5,000 ounces = $25 per tick.
The SI contract is physically deliverable. Delivery consists of silver with a minimum fineness of 999, normally in the form of large bars via approved COMEX warehouses. This isn't a contract retail traders should hold into the delivery process without specialised expertise and an arrangement with their broker.
SI vs SIL vs QI vs SIC futures
The difference between the contracts is critical. All track the silver price, but the dollar risk and settlement form differ greatly.
| Contract | Full name | Size | Tick value | Settlement | Best suited for |
|---|---|---|---|---|---|
| SI | Silver Futures | 5,000 oz | $25 | Physical delivery | Professionals and larger accounts |
| QI | E-mini Silver Futures | 2,500 oz | $31.25 | Financially settled | Medium-sized positions |
| SIL | Micro Silver Futures | 1,000 oz | $5 | Physical delivery | Active retail traders |
| SIC | 100-Ounce Silver Futures | 100 oz | $1 | Financially settled | Small accounts and precise risk |
Micro doesn't automatically mean low risk
SIL is smaller than SI, but one contract still represents 1,000 ounces of silver. SIC is considerably smaller, at 100 ounces and cash-settled. For many traders, this is a more realistic way into the silver market.
Tick value and dollar risk in silver futures
Futures aren't only about direction. They're about how much each price move means in money.
| Silver move | SI | SIL | SIC |
|---|---|---|---|
| $0.01 per oz | $50 | $10 | $1 |
| $0.10 per oz | $500 | $100 | $10 |
| $0.50 per oz | $2,500 | $500 | $50 |
| $1.00 per oz | $5,000 | $1,000 | $100 |
| $2.00 per oz | $10,000 | $2,000 | $200 |
| $5.00 per oz | $25,000 | $5,000 | $500 |
If you buy one SI contract at $60.00 and silver falls to $59.00, the loss is $5,000. The same move in SIL is $1,000, while the same move in SIC is $100.
This is why contract choice must come before trade idea. The same chart can be manageable in SIC and far too large in SI.
Why trade silver futures in 2026?
Silver is relevant because it's affected by several strong themes at once. On one hand, silver often follows gold when the market focuses on rates, the dollar, inflation, geopolitical risk or weakened confidence in financial assets. On the other hand, silver has a clear industrial role.
The Silver Institute notes that industrial demand had another record year in 2024, supported by electronics, electrical applications, solar cells, the car industry, power grids and AI-related uses, among others. At the same time, the market is more complex than a simple green-energy story, because higher prices and technological development can reduce silver use per unit in some segments.
- Traders who want more volatility than gold.
- Traders who follow rates, the dollar and macro data.
- Investors who want to hedge physical silver or silver ETFs.
- Intraday traders who use VWAP, volume profile and order flow.
- Swing traders who follow the gold/silver ratio, trend and macro regime.
How does the silver price move?
Gold, rates and the dollar
Silver can move on the same type of macro news as gold, but often with larger percentage swings. Falling real rates and a weaker dollar can support precious metals. Rising real rates and a stronger dollar can create pressure.
Silver traders should follow US inflation figures, labour market data, FOMC meetings, government bond yields, the dollar index, and how gold reacts to the same information.
Industry, China and technology
Silver is used in electrical components, electronics, solar cells, cars, power grids, medical technology and specialised chemical processes. China matters because the country plays a central role in global industrial production, solar energy, electronics, cars and commodity demand.
For a trader, this means headlines about green energy alone aren't enough. You need to look at actual silver intensity, technological change, price level, inventories and demand development.
The physical market and inventories
The silver price is also affected by physical availability, inventory flows, bullion demand, ETF holdings, and metal moving between warehouses and regions. A tight physical market can support price, but that doesn't mean silver rises every week. Timing, positioning and the macro regime still matter a great deal.
Silver vs gold: why silver often moves more
| Factor | Gold | Silver |
|---|---|---|
| Main role | Monetary metal and safe haven | Precious metal and industrial metal |
| Industrial demand | Limited | Significant |
| Volatility | Often lower | Often higher |
| Sensitivity to China and growth | Lower | Higher |
| Sensitivity to rates and the dollar | High | High |
| Sensitivity to industrial data | Lower | Higher |
Silver can often be described as gold with higher beta. When gold rises in a strong precious-metals regime, silver can rise more in periods. When the market picture turns, silver can also fall faster.
Margin and leverage in silver futures
Margin is the collateral you post to control the futures contract. It is not maximum risk. At an illustrative silver price of $60 per ounce, notional value looks like this:
| Contract | Contract size | Notional value at $60 |
|---|---|---|
| SI | 5,000 oz | $300,000 |
| QI | 2,500 oz | $150,000 |
| SIL | 1,000 oz | $60,000 |
| SIC | 100 oz | $6,000 |
CME publishes margin information on an ongoing basis, and brokers can require higher margin than the exchange minimum. So don't use free margin as the basis for position size.
A better model
Risk = distance to stop-loss × contract size × number of contracts.
If you trade SIL with an entry of 60.00, a stop-loss of 59.40 and one contract, the risk is 0.60 × 1,000 = $600. If that's too much, SIC is probably a better tool than moving the stop closer arbitrarily.
Physical delivery and rollover
SI and SIL are physically deliverable. SI represents 5,000 ounces of silver. SIL represents 1,000 ounces and can, on delivery, produce an Accumulated Certificate of Exchange, or ACE. This is delivery mechanics most retail traders should avoid by closing or rolling the position well ahead of time.
SIC and QI are financially settled. That means the contract closes in cash, not physical metal. For smaller accounts and traders who want to avoid delivery risk, this is a significant difference.
Rollover means closing the position in the expiring contract and opening an equivalent position in the next contract month. Silver contracts are normally listed in March, May, July, September and December. Always follow volume, First Notice Day, the last trading day and your broker's own deadlines.
Silver futures vs ETFs, silver stocks and CFDs
| Instrument | Exposure | Advantage | Key risk |
|---|---|---|---|
| SI / SIL / SIC | Direct silver futures | Long and short, clear contract | Margin, volatility and rollover |
| Silver ETF | Fund-based silver price | Easier access via a brokerage account | Fees and market hours |
| Silver mining stocks | Company + silver price | Potential operational leverage | Debt, costs, management and country risk |
| Physical silver | Direct metal | No futures margin | Spread, storage and liquidity |
| CFD on silver | Derivative with a provider | Simple access at some brokers | Spread, financing and counterparty risk |
Silver mining stocks aren't the same as silver. A mining stock is affected by energy costs, labour, project execution, debt, political risk, currency and the company's own operations.
Trading hours for silver futures
Silver futures trade nearly around the clock on CME Globex from Sunday to Friday, with a daily maintenance break. CET times vary around the shift between US and European daylight saving time.
| CET | Typical market focus |
|---|---|
| 00:00-08:00 | Asia, often lower European activity |
| 08:00-14:00 | Europe, London, rates and currencies |
| 14:30-18:00 | US opens, higher volume and macro reactions |
| 18:00-23:00 | US afternoon and positioning |
| Weekend | CME closed, but global news can create gaps at the open |
Strategies for silver futures
Trend-following with gold and the dollar as context
A long idea can be that silver makes higher highs and lows, holds above VWAP, gold is stable or rising, the dollar weakens, and price breaks above resistance with acceptance. A short setup can be the opposite: price under VWAP, lower highs, a stronger dollar, and a failed retest of prior support.
VWAP reclaim
VWAP is useful in silver because the contract can have fast intraday moves and false breaks. A possible long setup is that silver falls below VWAP, sellers fail to extend the fall, price reclaims VWAP, and the retest holds.
US open and macro volatility
Silver can move quickly when US markets open, especially around inflation figures, labour market data or Fed-related news. Mark the Asia high/low, Europe high/low, yesterday's levels, VWAP, volume areas, gold and the dollar index before considering entry.
Gold/silver ratio as context
The gold/silver ratio shows how many ounces of silver equal the value of one ounce of gold. A falling ratio often means silver is outperforming gold. Use the ratio as context, not as an automatic buy or sell signal.
Example trades in silver futures
| Parameter | SIC example | SIL example |
|---|---|---|
| Entry | $60.00 | $60.00 |
| Stop-loss | $59.40 | $59.40 |
| Target | $61.20 | $61.20 |
| Contract size | 100 ounces | 1,000 ounces |
| Risk | $60 | $600 |
| Potential gain | $120 | $1,200 |
| Risk/reward | 1:2 | 1:2 |
This shows why the same technical setup can be right in one contract and too large in another.
Common mistakes when trading silver futures
- Choosing SI without calculating dollar risk.
- Assuming SIL is financially settled because it's called Micro Silver.
- Using margin as a measure of maximum risk.
- Trading silver as if it were the same as gold.
- Ignoring the dollar, rates and key US data.
- Using the gold/silver ratio as the only signal.
- Holding SI or SIL too long into expiry.
- Believing solar energy alone determines the silver price.
- Overtrading SIC because the contract is small.
- Overlooking currency risk against your home currency.
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| Term | Explanation |
|---|---|
| SI futures | Standard COMEX Silver Futures at 5,000 ounces. |
| SIL futures | Micro Silver Futures at 1,000 ounces. |
| SIC futures | 100-Ounce Silver Futures at 100 ounces. |
| QI futures | E-mini Silver Futures at 2,500 ounces. |
| Troy ounce | Standard unit of weight for precious metals, about 31.1 grams. |
| Tick | The smallest price movement in a futures contract. |
| Tick value | The dollar value of one minimum price movement. |
| Margin | Collateral requirement for holding a futures position. |
| Physical delivery | The contract can end in delivery of physical metal. |
| Financial settlement | The contract closes with a cash settlement. |
| Rollover | Switching from an expiring contract to the next contract month. |
| Gold/silver ratio | The ratio between the gold and silver price. |
| VWAP | Volume-weighted average price through the trading day. |
Sources and further reading
- CME Group: Silver Futures contract specs
- CME Group: E-mini Silver Futures contract specs
- CME Group: 100-Ounce Silver Futures
- CME Group: 100-Ounce Silver futures fact card
- The Silver Institute: Silver Supply & Demand
Conclusion: silver futures offer opportunity, but require precise risk management
Silver futures is one of the most interesting metals markets for active traders. Silver combines the characteristics of a precious metal with demand from industry, technology and electrification.
The market can give strong trend moves when several drivers point the same way: falling rates, a weaker dollar, stronger gold, investor interest, positive industrial development, and technical breaks with volume and acceptance.
Choose the contract based on risk, not margin
For many retail traders, SIC is the most manageable entry point because it represents 100 ounces and is financially settled. SIL can suit active traders who want larger exposure, but it's still physically deliverable. SI should be treated as a professional contract.
The most important rule is simple: choose the contract based on maximum risk at your stop-loss, not on how much margin you have available.
Capital risk: Futures trading carries a high level of risk and is not suitable for everyone. Losses can exceed deposited capital. This article is general information, not investment advice.
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Frequently asked questions about silver futures
Short answers about SI, SIL, QI, SIC, tick value, physical delivery and what drives the silver price.
Silver futures are exchange-listed contracts that give exposure to the future price of silver. The most used US contracts trade on COMEX, part of CME Group.
SI is the standard COMEX Silver Futures contract. One contract represents 5,000 troy ounces of silver, is priced in USD per troy ounce, and is physically deliverable.
SIL is Micro Silver Futures. One contract represents 1,000 troy ounces of silver, a fifth of the standard SI contract. SIL is physically deliverable.
SIC is 100-Ounce Silver Futures. The contract represents 100 troy ounces, is financially settled, and carries far less dollar risk than SI and SIL.
One tick in SI is $0.005 per troy ounce. With 5,000 ounces per contract, that equals $25 per tick.
Micro Silver has the same minimum price movement as SI, $0.005 per troy ounce. With 1,000 ounces per contract, that equals $5 per tick.
CME Group's fact card for 100-Ounce Silver futures states the minimum tick as $0.01 and the tick value as $1 per contract.
SI and SIL are physically deliverable. QI and SIC are financially settled. Retail traders should normally close or roll physically deliverable contracts before delivery becomes relevant.
The most important drivers are gold, real interest rates, the US dollar, ETF flows, physical availability, investor interest, industrial activity, China, solar energy, electronics and global growth.
A simulator is always a good first step. For live trading, SIC will normally be the most manageable because the contract represents only 100 ounces and is financially settled.