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A look at Coal Futures

Coal Futures Contracts are traded on the NYMEX exchange. This fuel has many uses today including solid fuel to produce heat and electric through combustion. It is also possible to convert this fuel into a liquid fuel, like petroleum or diesel.

A standard Nymex futures contract is the value of 1,550 tons of coal.

The initial margin requirement for a coal futures contract is currently $3,375 and the maintenance is currently $2,500.

Coal trading is not very common. This can lead to low liquidity and contracts having high spreads. However, it is still possible to invest in coal on margin if you feel that price is going to move up or down in the short, medium or long term future. It is important to remember, these contracts, like all futures must be considered how risk and a full understanding of margin is required for successful trading.

Return from Coal Futures to Energy Futures








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