For thousands of years people have been trading silver. The precious metal is also known as “poor man’s gold” and has been in use for making jewellery and as a form of money for many centuries now. Today silver is also an important industrial metal that has many applications. It is being used in household appliances, batteries, solar panels, electronic circuits, etc.
Silver is one of the most popular metals among daytraders and is enjoying a solid crowd of followers. The reason that silver is so popular with traders is that it is highly volatile. Much more volatile than big brother gold. The correlation between the price movements of silver and of gold is large (about 95%). So the silver price follows largely the price of gold. However, the up and down swings are much larger.
PriorFX recognizes how important trading Silver is to any investor who takes the market seriously. As a result PriorFX understands how important it is to provide the trader with the best possible market conditions.
- Fast Execution & Tightest Spreads Available.
- Trading Silver via Multiple Platforms (Web, Desktop, Mobile).
- Balanced Leverage and Exposure , 1:200 , 0,5% of transaction value.
- Variable STP spread
Silver Trading Hours
Silver is traded from Sunday at 23:00 GMT to Friday at 23:00 GMT. It is important to note that there is a daily break in Silver trading services between 21:00 GMT and 22:00 GMT, market trading in Silver resumes at 22:00 GMT. During the break period, no trading, or placement of orders will be possible.
Margin Requirements for Silver Positions
In a standard 1:200 leveraged trade, 0,5% of the transaction value must be set aside to cover the margin requirement. As a result, for every $1 in your account you are able to control $200 in the market.
Silver Trading Example
Explanations aside, it’s essential to see how Silver positions look in the actual market. The most straightforward way is by going through the calculations involved.
Let’s take a 1000 ounce XAG/USD (1 Lot) position bought at a market price of $32.00 per/ounce. The USD value of the position will be: 1000 ounces X $32.00 = $32000 With a margin requirement of 0,5% (1:200 leverage) the result will be $1600 required to open the position.
Silver CFD Rollover (Swaps)
In both commodities and foreign exchange markets a rollover/swap, is the interest that is added or deducted in order to secure an open position overnight. Rollover/swap rates are calculated as the overnight interest rate differential between the two currencies on which the position is held comes due, depending on the position type (Buy (Long) / Sell (Short).
It is important to consider the following aspects of rollover/swap charges
- Rollover/Swaps are charged on client’s Forex accounts only on the positions kept open into the next forex trading day
- The rollover process begins at the end of the US market trading session.
- The Silver rollover/swap rates above are calculated and based on USD accounts per 1 standard lot
- The rollover/swaps are calculated and applied on every trading night. On Wednesday night rollover/swaps are charged at a triple rate(please read through explanation below)
Some additional information regarding Precious Metal Rollover/Swaps
At PriorFX rollovers are dealt with on a “spot” basis only. Meaning that all positions are settled two business days from inception, as per market rules. PriorFX will not facilitate actual physical delivery of either precious metals/currency. As a result, all positions that are open from 23:59:45GMT to 23:59:59GMT (Server time) are rolled over to a new value date. These trades are then charged or credited the relevant rollover as shown in the table above.
Very Important: When an open trade is rolled over from Wednesday to Thursday on trade, the new value date shifts to Monday of the next week. As a result, the rollover charge on Wednesday evenings will always be three times the value shown in the above table.In general it should be understood that in the case of factoring in weekends and holidays, the rollover/swap is multiplied by the number of days of the rollover.
The above illustrations are mere fictitious examples and are not to be construed in any way to constitute investment advice.
The performance figures quoted are only estimates and may not be reliable indicator of future performance of this investment.
This information does not constitute an offer or solicitation and is provided for information shall not be deemed to constitute advice and should not be relied on as such to enter into a transaction or for any investment decision. Any opinions expressed in this document represent the views of PriorFX at the time of preparation. They are thus subject to change without notice. PriorFX believes that the information contained herein is accurate as at the date of publication. However, no warranty of accuracy is given by PriorFX and no liability in respect of any errors or omissions, including any third party liability, are accepted by PriorFX or any director, officer or employee.