What Are Platinum Futures (PL)? Complete Contract Breakdown
Platinum futures (PL) are NYMEX contracts that let traders control 50 troy ounces of platinum with leverage. If you’re new to metals, understand this upfront: PL moves fast, trades thinner than gold, and will punish sloppy execution. This guide lays out how the contract actually works so you stop guessing.
PL Contract Specs (The Stuff You Must Know)
The Platinum futures contract is cleaner than most metals but still catches beginners off guard. Here are the numbers that matter:
| Component | Value |
|---|---|
| Exchange | NYMEX (CME Group) |
| Contract Size | 50 troy ounces |
| Minimum Tick | $0.10 per ounce |
| Tick Value | $5.00 per tick |
| Symbol | PL |
| Settlement | Physical delivery |
| Trading Hours | 5:00 p.m.–4:00 p.m. CT (Sun–Fri) |
If you’ve traded Gold (GC) or Silver (SI), PL’s structure will feel familiar — but its liquidity profile is much less forgiving.
Why PL Trades Differently Than GC or SI
Platinum isn’t a “safe haven.” It’s an industrial metal first, and a jewelry metal second. That means its price responds to:
- Automotive catalytic converter demand
- Mining conditions in South Africa and Russia
- Industrial usage cycles (chemical, hydrogen tech, etc.)
- Supply disruptions far more than investor sentiment
GC and SI have massive speculative flows. PL doesn’t — so the order book is thinner, and price jumps come harder. Don’t treat PL like a liquid major. It isn’t one.
How Margin Works for Platinum Futures
Margin on PL is set by CME and your broker. Two numbers matter:
- Initial Margin: What you need to open a position.
- Maintenance Margin: What you must keep while the position is open.
Day margin is a broker gimmick. Overnight margin is the real requirement. If you’re taking swing trades, build everything around the overnight number — not the “$1,000 day margin” bait brokers throw at beginners.
Who Actually Uses PL Futures?
It’s not retail. The people moving this contract are:
- Auto manufacturers hedging catalytic converter exposure
- Mining companies locking in pricing
- Industrial users with large platinum needs
- Funds running metal spreads like PL/PA or PL/GC
That’s why the market pauses, surges, and retraces around fundamentals more than speculative sentiment.
Bottom Line: PL Is Tradable, But Not Forgiving
If you understand the contract size, tick value, liquidity, and industrial drivers, PL can be clean. If you don’t, you’ll get whipped out of thin books and random air pockets. Master the specs before you touch it — and then move into volatility, seasonality, and spreads, which we cover in upcoming articles.