Silver Accounts Types Explained

Trading Accounts Examples

In recent years retail silver trading has grown hugely in popularity & demand for different types of accounts has grown. There are numerous different trading account types available to any trader who wants to invest in the online silver market - Silver Account Explanation.

The silver market is a highly silver leveraged market for speculating on trading price valuations. Silver traders can purchase big amounts of silver trading units using leverage - Silver Leverage is what makes silver trading attractive to many online traders - with silver trading leverage a trader can make more profits or losses because they use less of their capital & borrow the rest.

There are different types of accounts available to help investors better manage their silver trading account capital as well as their trade transactions.

How a Real Account Looks Like

It is therefore important that the traders consider what they want to get out of their silver trading, before deciding on the account type to open.

Below is a comparison of the two types of trading accounts commonly used to trade silver. The trading account types review below explains the different features of each of the types of silver trading accounts.

1. Standard XAGUSD Accounts Explained

Silver Trading Account Meaning - Standard XAGUSD Account. A Standard Account is denominated in US Dollars and trade transactions are placed using standard lots. One lot is also known as one contract. Minimum opening capital - at-least $10,000 USD.

1 contract refers to the minimum size of a single trade transaction. This trading account option is the most suitable for silver traders with enough capital to invest in xagusd trading - this account option requires $10,000 to $50,000 dollars in starting capital, For this standard trading account the trader will not be undercapitalized and with good silver money management rules and silver money management strategies, this standard trading account option has the best chance for profitability because it is not undercapitalized. Under capitalization is what makes most traders in silver trading not profitable.

It isn't recommended to open a standard account unless you've an account balance of at between $10,000 minimum & $50,000.

Professional Money Managers advice $50,000 minimum to open this standard account and only opening trades with only 2% of the trading capital you have in your trading account. However, most online brokers will still open this standard trading account for you if you have more than $10,000.

With trading leverage of 100:1, you will borrow from your silver broker (with silver leverage of 100:1, your silver broker gives you $100 dollars for every $1 dollar that you have in your trading account, therefore if you have $1,000, the online broker will give you $100 dollars of silver leverage for each $1 dollar you have, meaning after silver leverage you will have $1,000*100=$100,000 which you can then use to trade silver).

2. Micro XAGUSD Trading Account Explained

Silver Trading Account Meaning - Micro Trading Account. Micro Trading Accounts use lot sizes of only equivalent one hundredth that of a silver trading standard lot. These Micro trading accounts are often appropriate for silver traders without a lot of silver capital & can sometimes be opened with only a $5 minimum balance.

This Micro trading account option allows the trader to open trades in micro lots. 1 silver trading micro lot is one-tenth of a silver trading mini lot and one hundredth of a silver trading standard lot.

This Micro trading account option is generally best suited for silver account equity balances that are between $1,000 & $5,000

In silver trading, one silver trading standard lot is the standard transaction minimum of silver instrument traded in the trading market. But many brokers offer fractions of this silver trading standard lot to enable more retail traders to access the trading market. Being able to offer silver trading micro lots reduces the minimum trade transaction size thus giving the beginners and also those traders without a lot of silver trading capital to start trading and get a feel of the trading market without investing a lot of silver capital.

There are learn silver trading online tutorials that a trader can read even before opening a real trading account, and to get extra practice in trading before opening a real silver trading account a beginner silver trader should open a practice Silver demo trading practice account with a broker - so as to practice placing trade transactions before opening a real trading account and investing with real money.

During the trading training period using the trading demo practice account, the beginner silver trader will learn the key factors needed to succeed in silver trading such as: silver trading education, silver trading money management, trading plan & silver systems.

The types of silver strategies used and the skills required for any of these 2 trading accounts are essentially the same - those trading skills and silver strategies required for the Standard trading account or Micro trading account are the same the only difference to be adjusted are the silver money management guidelines for each trading account type.