What is Silver Trading?
Silver Trading is a term that is commonly used by silver trading investors & xagusd traders to describe trading activity in the xagusd trading market that is carried out by traders, investors and speculators.
In silver trading a trader can buy or sell silver. A trader will buy silver if they think the value of the silver instrument is likely to appreciate in the future. A Silver Trader will sell silver if they think the value of the silver instrument is likely to depreciate in the future.
The Silver Market is an over the counter market which means trading is carried out through a network of the big international banks; this silver trading network is commonly referred to as the interbank network. This interbank silver trading network consists of banks and silver brokers which are in different locations. These interbank network is responsible for providing the xagusd prices at any particular time to the traders and other silver market participants who want to buy or sell silver. In silver trading the xagusd price is constantly changing and this xagusd price is denoted by what is known as a Silver Trading Quote. In Silver Trading the Silver Price is displayed as a Silver Quote. This silver trading quote is constantly changing and the interbank network will update automatically the current silver trading quote and xagusd traders can then trade the xagusd at the current xagusd price.
XAGUSD Trading Quotes
Trading xagusd prices of silver trading instruments is displayed using Silver Trading Quotes. This is the xagusd price at which any silver trader wanting to trade silver will trade at.
Because xagusd prices are constantly changing it means that xagusd traders can take advantage of these xagusd price movements to make profits by trading these xagusd price movements. The xagusd price of any silver trading instrument will keep moving because of demand supply. This is because there are many participants trading silver instrument in the open silver market and therefore this means that the xagusd price quotes will get determined by the current market forces. These market forces may be determined by factors such as an increase in demand for silver.
XAGUSD Trading Pips
In silver trading the xagusd price moves are measured in points commonly known as Pips in the xagusd trading market. The pip is used to calculate the profit or loss that a Silver Trader makes in a particular trade. For example if a trader makes a trade which moves 50 pips in his direction, then the profit of the trader will be calculated as 50 silver trading pips. Pip in silver trading is represented as the second last decimal point in the Silver Trading Quote and it is made up of pipettes - pipettes are fractions of a Silver Trading Pip.
XAGUSD Trading Lots
In xagusd trading - silver is traded in units known as silver lots or silver trading contracts.
XAGUSD Trading Leverage
Because not many xagusd traders can afford to trade large units of silver trading contracts, there is silver trading leverage in silver trading which means that xagusd traders can borrow money and use the borrowed money to make trades with. For example silver leverage of 100:1 means that a trader with capital of $10,000 can borrow upto 100 times using the 100:1 leverage option & therefore after borrowing using this silver trading leverage the trader will have a total of $10,000 multiplied by 100, which means the trader will have a total of $1,000,000. This silver leverage is what makes Silver accessible to retail silver traders because retail xagusd traders can start with little capital of their own & use silver leverage to borrow the rest of the money required for trading. The money that the trader deposits is referred to as a silver trader’s margin & a trader can continue borrowing money using this silver leverage option as long as they have the required silver trading margin in their xagusd trading account. This is why silver traders must have the required silver trading account balance in their xagusd account to open the trades they want to.
