Palladium Futures (PA) on NYMEX: 100 Troy Ounce Contract Details and Margin

Q: What are palladium futures (PA)?

PA is the NYMEX futures contract for 100 troy ounces of palladium, physically delivered, and part of CME Group.

Q: What is the minimum price move on palladium futures?

Palladium outrights tick in $0.50 steps, which is $50.00 on one contract.

Q: How much does a $10 palladium move change one PA contract?

$1,000 for a single contract, since palladium futures cover 100 ounces.

Q: How do I calculate the value of a PA contract?

Take the price per ounce times 100; palladium at $1,200 gives a face amount of $120,000.

Q: Does PA end in physical delivery?

Yes. Palladium of at least 99.95 percent purity is delivered during the delivery month, so traders who do not want delivery exit before first notice day.

Q: Which PA months are active?

March, June, September and December carry the volume. The three nearest calendar months are listed as well.

Q: When do PA contracts expire?

A PA month finishes trading late in that same month, on its third last business day, and delivery can occur on any business day of the month.

Q: How much margin does Lincoln Park Financial require for PA?

For PA, our listed margin is $3,000 for an intraday position and $24,200 for a position held overnight. The margins page reflects any adjustment.

Q: During which hours is palladium open?

PA is open on CME Globex from 5:00 p.m. CT Sunday until 4:00 p.m. CT Friday, closed from 4:00 p.m. to 5:00 p.m. CT each weekday.

Q: Why does palladium depend so much on the auto industry?

Most palladium demand comes from catalytic converters that reduce emissions from gasoline engines, so vehicle production and emissions standards shape demand.

What Is a NYMEX Palladium (PA) Futures Contract?

Palladium futures (PA) are a NYMEX contract, part of CME Group, for 100 troy ounces of palladium of at least 99.95 percent purity, settled by physical delivery. The outright tick is $0.50, or $50.00 per contract; one dollar in the palladium price is worth $100 on a position.

Most palladium is used in catalytic converters for gasoline and hybrid vehicles, with smaller amounts in electronics, dentistry and chemical production. PA is traded by automakers, refiners, mining companies and traders who follow the platinum group metals. Its NYMEX sister contract is Platinum (PL), and our metals hub covers gold and silver.

NYMEX Palladium (PA) Contract Specifications

PA lists three consecutive months plus March, June, September and December contracts out to 36 months, and those quarterly months are the active ones. Outright trades use a $0.50 tick, while spreads and settlement prices use $0.10. The final trading day for each month is its third last business day.

Product:

Palladium

Futures Contract Symbol:

Exchange:

NYMEX (part of CME Group)

Contract Size:

100 troy ounces

Trading Hours:

On CME Globex, 5:00 PM CT Sunday until 4:00 PM CT Friday; no trading 4:00 PM to 5:00 PM CT on weekdays

Minimum Price Fluctuation:

Outright: $0.50 per troy ounce ($50.00); spreads and settlement: $0.10

Contract Months:

Three nearest months, then Mar, Jun, Sep and Dec contracts out to 36 months

Settlement Method:

Deliverable; palladium of 99.95 percent purity or higher

Exchange Fees:

$1.60/contract

NYMEX Palladium (PA) Margin

Holding Period:

Day Trading Margins

Overnight Margins

Margins:

$3,000

$24,200

Palladium margin is on our futures margins page with every other metal. Compare PA with Platinum (PL), or see COMEX contracts on the gold futures hub, COMEX Silver (SI) and Copper (HG). To trade palladium, open an account or get a commission quote.

Official Exchange Source: CME Group NYMEX Palladium Contract Specifications

The above information is derived from sources believed to be accurate. It is provided without guarantees and is subject to change without notice.

What Drives the Palladium Market?

Palladium supply is concentrated in a few countries and demand is concentrated in one industry, so the market can move quickly. PA traders analyze the following factors; they do not forecast prices.

Russian and South African output: Russia and South Africa account for most mined palladium, so sanctions, export policy and mine disruptions affect supply.
Gasoline vehicle production: palladium is the main metal in gasoline and hybrid catalytic converters, so global auto output matters.
Electric vehicle adoption: battery electric vehicles do not use catalytic converters, so their share of vehicle sales is followed closely.
Substitution: automakers can replace some palladium with platinum when the price gap between the two metals is wide.
Recycling: metal recovered from scrapped catalytic converters is a growing source of supply.

Palladium has a history of large price swings, and futures trading involves substantial risk of loss.