Precious metals are regarded as secure investments in times of market uncertainty, with investors choosing to diversify their portfolio and managing their risks through investing in precious metal options.
trading metals work?
Besides trading physical quantities, metals are commonly traded in the futures market, where future contracts are bought and sold for delivery on a future
It may be traded in other sophisticated derivatives such as options that require a premium as an upfront cost and exchange-traded funds (ETFs), where a basket of different metals are traded in an investment fund, which is in turn traded like a stock in the stock exchange.
Metal Contract Specifications
|Currency Pair||Typical Average Spread|
|Currency Pair||Long Rate in Pips||Short Rate in Pips|
|Currency Pair||Minimum Contract Size||Minimum Price Fluctuation||Size of 1 Lot||Used Margin Per 1 Lot|
|XAU/USD||0.01 Lot||0.01||100 oz||1% X 100 X Gold Mkt Price (in USD)|
|XAG/USD||0.01 Lot||0.01||5000 oz||1% X 5000 X Silver Mkt Price (in USD)|