63.21 % of retail investors lose their capital when trading CFDs with this provider.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63.21 % of retail investors lose their capital when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Silver - Definition and Characteristics

Ag is the symbol for silver, a chemical element (from the Latin Argentum). It is the metal with the highest electrical conductivity, thermal conductivity, and reflectivity. Silver may be found in its pure, elemental form ("native silver") in the Earth's crust, as an alloy with gold and other metals, and in minerals like argentite and chlorargyrite. However, most silver is created as a byproduct of refining copper, gold, lead, and zinc.

Silver has traditionally been considered a valuable metal. As a result, many bullion coins contain silver, occasionally combined with gold.

The metal is used in solar panels, water filtration, jewelry, ornaments, high-value tableware and utensils (hence the term "silverware"), electrical contacts and conductors, specialized mirrors, window coatings, catalysis of chemical reactions, as a colorant in stained glass, and specialized confectionery, in addition to currency and as an investment medium (coins and bullion).

Silver has the chemical symbol Ag, but when trading it, it's commonly expressed as XAGUSD. Why is that? The explanation for this is simple. The letter X stands for "exchangeable," making it an abbreviation for "exchange" or "trading."

Both gold and silver usually move in tandem, but there are times when the correlation does not work. For example, gold used to be one of the best inflation hedges, but recent times have shown us that there are many better choices for protecting your capital against inflation – such as US equities, copper, oil, etc.

Often silver behaves as a risk-on asset - rising along with equities or weakening with them. Silver is heavily influenced by macroeconomics factors - such as inflation, current and expected rates in the USA, economic cycle, and so on.

Performance

As you can see from the weekly chart, silver has moved nowhere between 2013 and 2020. Then, after the COVID crash, central banks started pumping massive amounts of money into the financial systems, causing inflationary pressures. As a result, silver quickly doubled in value; however, it is fast losing gains in 2022 as the Fed embarks on aggressive monetary policy tightening.

Therefore, silver has not been an ideal asset to "buy and hold," underperforming other commodities or stocks. But, on the other hand, it has really high volatility – be it intraday, daily or weekly, benefiting short-term and swing traders.

Stříbro - MT4
Source: Purple Trading Metatrader 4

Silver - quotes and trading

Our Purple Trading Metatrader 4 platform allows you to trade silver CFDs. First, in the Metatrader 4 platform, locate the ticker XAGUSD and hit the new order button. The window below will appear.

Stříbro v platformě MT4
Zdroj: Purple Trading Metatrader 4

Lot value calculation

When you open our Metatrader 4 platform and click on the XAGUSD ticker, you'll notice that the spread between the Ask and Bid price is around 2.00 cents during periods of high liquidity (usually when London and New York are open for trading).

The minimal volume for trading silver is one micro lot (0.01). If you trade a mini lot (0.1), you will gain or lose 50 USD for each 10 cents silver makes. When trading half a lot, each 10 cents of silver movement will yield 250 USD of profit/loss. For example, you buy half a lot at 22 USD, and silver goes to 22.50 USD. Your total profit will be 1,250 USD (calculated as 50 cent (5*10 cents) movement * 250 USD profit per each 10 cents of the move). The same logic applies to calculating your profit or loss when entering a short position.

Keep in mind that silver is quoted in US dollars, therefore if your account is in EUR or another currency, your profit or loss must be converted to EUR at the current exchange rate.

You can trade at the current market price (market execution) or utilize pending orders, (limit and stop orders). You can initiate the trade without the stop-loss and take-profit orders now and add them afterwards.




 

Start trading silver with us today!

 

Your capital is at risk.

Frequently Asked Questions

ASK
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The offering price on the market for which the buying positions are executed and selling positions are closed. It is higher than BID price.
BID
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Bidding price on the market for which the selling positions are executed and buying positions are closed. It is lower than ASK price and the chart displayed in MT4 is based on this price.
 
Commodity currencies
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These include the Canadian dollar (CAD), Australian dollar (AUD), New Zealand dollar (NZD). The value of these currencies is influenced by the value of the commodities that the countries produce. For example, CAD is influenced by the price of oil, AUD by the price of gold, iron ore and coal, and NZD by the price of dairy production.
Lot
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The basic unit of traded volume. For currency pairs, it is 100,000 units of the base currency. Lot size varies between individual CFD-type instruments as it is based on the number of contracts set for each one.

 
Micro-lot
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A micro-lot is a trading unit derived from the standard trading unit, which in the Forex world is the lot. While 1 lot represents a transaction of 100,000 units of the currency mentioned first in a currency pair, the value of 1 micro lot is 1,000 units.

If you are interested in the relationship between lots, micro-lots, leverage, and margin, we recommend reading the article about micro-lots we wrote on the subject.

A micro lot is 0.01 lot.
Mini lot
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A mini lot is a volume of 0.1 lot.
Swap
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A fee charged for holding a trading position overnight. It is expressed in points or percents and it is directly proportional to the volume of the trading position held. Please note the Swap for Forex pairs and precious metals is being charged 3x on Wednesday, which includes also the weekend swaps. (Swap is charged at Wednesday - Thursday midnight) For other symbols is being charged 3x on Friday. (Swap is charged at Friday - Saturday midnight)
63.21 % of retail investors lose their capital when trading CFDs with this provider.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63.21 % of retail investors lose their capital when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.