Feeder Cattle Futures
What are feeder cattle futures?
Feeder cattle futures are one of the most widely traded livestock futures contracts in the U.S. Feeder cattle futures contracts represent the delivery of cattle that are ready to be sold for use in industries including agriculture and in the manufacture of consumer goods.
How to trade feeder cattle futures
Feeder cattle futures can be traded nearly 24 hours a day on the thinkorswim® trading platforms.
Feeder cattle futures contract specifications
Considering trading feeder cattle futures? Here are the feeder cattle futures contract specifications.
| Exchange, Symbol | Chicago Mercantile Exchange, /GF |
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Multiplier |
500 |
| Minimum Tick Size and Value | 0.025 = $12.50 |
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Settlement |
Cash |
|
Trading Hours |
9:30 am – 2:05 pm ET, Monday - Friday |
At Schwab, you also get access to advanced trading platforms and education, where you can take advantage of market research, real-time feeder cattle futures quotes, and other specialized tools.
Why trade feeder cattle futures?
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Investors can use agricultural products like feeder cattle futures to diversify their portfolio using investments that have a low correlation with their financial assets. Traders can use feeder cattle futures to speculate on the price of young cattle placed on feed lots, which can be affected by a number of factors including overall demand for animal protein and potential shortages due to weather or political events, the change in price of commodities used to feed the animals like corn and soybeans, and even the strength of the U.S. dollar. Options on feeder cattle futures are also available.
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It is important to understand the benefits and risks involved with feeder cattle futures before placing a futures trade. With feeder cattle futures you can trade outside of the traditional market hours associated with equities and take advantage of potential trading opportunities regardless of market direction. Feeder cattle futures also provide the ability to trade with greater leverage and can allow a more efficient use of trading capital. However, trading leveraged products like feeder cattle futures is not suitable for all investors. It involves risks that greater losses can occur with smaller market movements, and more than your initial investment can be lost.
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Futures trading at Schwab
Take advantage of specialized education, platform, and support.
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