Learn · Gold futures
Gold futures vs gold ETFs: how the structures differ
Both give exposure to the gold price, but the mechanics are different: what you actually hold, how much leverage is involved, when you can trade and what it costs to keep the position. This is an explainer, not a recommendation.
By the NQ Replay team · Updated
Short answer
A gold futures contract (GC = 100 oz, MGC = 10 oz) is a leveraged, margined agreement with a delivery month that trades nearly 24 hours on CME Globex. A gold ETF or ETP is a share on a securities exchange, traded during that exchange's hours, with no expiry for the holder and ongoing fund expenses. Some gold ETPs hold bullion; others hold futures and must roll them.
Side-by-side comparison
| Gold futures (GC / MGC) | Gold ETF / ETP shares | |
|---|---|---|
| What you hold | A contract for 100 oz (GC) or 10 oz (MGC) for a delivery month | Shares of a fund or trust; it holds bullion or futures |
| Where it trades | COMEX on CME Globex | A securities exchange |
| Hours | Sun–Fri 6:00 p.m.–5:00 p.m. ET with a daily break | That exchange's session, plus any extended hours your broker offers |
| Leverage | Built in: margin is a fraction of contract value | None by default (unless bought on margin or a leveraged product) |
| Expiry | Yes — close or roll before delivery | No expiry for the shareholder; futures-based funds roll internally |
| Ongoing costs | Commissions, fees and the roll's price difference; no management fee | Fund expense ratio plus trading costs |
| Minimum exposure | 10 oz (MGC) per contract | One share (or a fraction, where offered) |
Bullion-backed vs futures-based products
Not every gold ETP holds metal. Products that hold futures have to replace expiring contracts with later ones, and the CFTC notes that commodity ETPs and funds investing in futures present different risks from owning shares of a company (CFTC advisory). Read a product's prospectus to see what it holds. The roll mechanics themselves are explained in gold futures rollover.
Leverage in numbers
With gold near $4,000 per ounce — roughly where GC traded in mid-2026 — one GC contract represents about $400,000 of gold and one MGC about $40,000. Every $1.00 move is $100 per GC and $10 per MGC. The same $1.00 move changes a gold ETF share by an amount set by how much gold each share represents, which is far smaller per unit. Use the gold futures calculator to see tick-level P&L.
Where a replay simulator fits
A futures replay lets you rehearse the mechanics that are unique to futures — contract sizing in ticks, sessions that start the evening before, roll dates and event days — without real money. NQ Replay covers GC and MGC (Pro and Pro+) and NQ/MNQ; it does not cover ETFs or stocks. Nothing here suggests which instrument anyone should hold.
Frequently asked questions
Is a gold ETF the same as gold futures?
No. An ETF or exchange-traded product is a share that trades on a securities exchange; some hold physical gold and some hold futures. A futures contract is itself an agreement to buy or sell a fixed amount of gold in a delivery month.
Are gold futures leveraged?
Yes. A futures position is opened by posting margin that is a fraction of the contract's value, so gains and losses are large relative to the money posted. One GC contract controls 100 troy ounces.
Which is better, gold futures or a gold ETF?
This page doesn't make that judgement — it depends on your goals, account and risk tolerance, and is a question for a licensed professional. It only explains the structural differences.
Can I practise gold ETFs in NQ Replay?
No. The simulator covers GC and MGC futures (Pro and Pro+) and NQ/MNQ futures. It has no stock or ETF data.
Sources
- CME Group — Gold (GC) futures contract specifications
- SEC Investor.gov — Investor Bulletin: Exchange-Traded Funds (ETFs)
- CFTC — Customer advisory: risks of commodity ETPs and funds
- NQ Replay 1-minute archive (GC, MGC, NQ, MNQ), measured October 23, 2026. Measurements describe past sessions only.