PL (platinum) and PA (palladium)

Platinum and palladium: the auto-driven cousins

Platinum trades on NYMEX as PL — 50 troy ounces per contract, tick 0.10, which works out to $5 per tick. Palladium trades on NYMEX as PA — 100 troy ounces, tick 0.05, also $5 per tick. They sit in the precious metals bucket because they're rare and they're shiny, but in practice they're industrial metals first and stores of value a distant second.

Here's where these metals get specific. The single biggest source of demand for both is catalytic converters — the emissions-control device on the exhaust of every gasoline and diesel car. Palladium dominates in gasoline engines. Platinum dominates in diesel. So when global auto sales rise or emissions standards tighten, these metals get bid. When auto sales slow or EVs replace combustion engines, demand pressure eases.

Two practical rules for trading PGMs (platinum group metals). One: respect the volatility. Daily ranges of 3-5% are routine, and there's no micro version of these contracts. A full-size PL or PA tick is $5, but a $50 move in palladium — common on a quiet day — is $5,000 per contract. Two: read the supply story. These markets are heavily concentrated in a handful of mines, mostly in Russia and South Africa. Strikes, sanctions, electricity rationing — single news events move these metals the way no S&P futures move ever could.

Recap: PL = 50 oz / $5 tick (diesel catalysts). PA = 100 oz / $5 tick (gasoline catalysts). Thin markets, big swings, supply-driven. Trade them small or paper-trade them entirely until you've watched a few real moves.