Spot gold is an over the counter market and the prices are based on the availability and demand, so the prices can fluctuate greatly. Spot price relates to the price that was quoted for the silver or gold that will be given two days from the initial transaction date. Spot prices are determined in London and are fixed twice a day for gold (they’re fixed only once a day for silver).
The most critical rule is placing a fixed percentage of your trading portfolio toward gold and silver per month, regardless of the gold and silver price.
High risk forex trading gold silver
Sales of gold and silver are done in much the same manner as currency pairs. Deals are made against the U.S. dollar. For instance traders can take a long or short position, just like with currency trades, while they take an opposite position with the dollar. You can also trade gold and silver against currencies from other countries too.
Also, similar to the currency trading market, the trades are conducted round the clock from Sunday at 6 p.m. EST to Friday at 5 p.m. EST. There are three major centers for trading gold and silver: New York, London and Zurich. There is not a central market for gold and silver trading.
FAQ’s: How do I get into forex silver trading?Oh god I know I'm going to get tons of spam responses here but here goes… Hopefully there are some honest people out there. My dad keeps advising me to get into forex silver trading. The way he has described it makes it seem great; that there are high profit yields and low risks when using a forex platform. But it's been extremely hard for me to find honest advice out there in the interweb, as most sites just seem to be biased and self promoting. I'm considering investing $500 dollars or so and would like to find a program that works, but it's been really hard to get any good factual information. My dad explained that forex works in things called "pips" where every penny of gain/loss in silver is worth around $5.00. So if silver increased ten cents today, you would have profited $50 or lost $50 if it was the other way around. My dad explained that programs will have an option to sell if silver gets below a certain point to mitigate your losses. If I was investing in $200 lets say, I could lose the money quick if I wasn't watching it, but if a program was doing it for me… Well then it sounds like it would be too easy to profit. My dad isn't particularly rational and I think he doesn't know how to sort through the junk of misinformation in the business world. For me, trying to find information on silver trading on the internet is much more difficult then trying to find factual information about a subject in college, as most people out there seem to be solely concerned into manipulating people into acting in a given behavior that benefits their pocket book. Please give me some advice on how to get into forex silver trading as a young and broke student (supposing that one should get into it at all!). Thanks, Flavius, what do you think the point of this question is? Did you even read my post? I'm not about to spend $500 NOW. I'm trying to get more information from good sources before I invest, and I don't expect to get all that information from yahoo answers anyways. I don't mean that high profit and low risk are something inherently related to any investment scheme. I meant that a computer program would be able to manage risks through math rather than human reasoning, like commands to "sell" when x object drops below Y dollar amount. It doesn't seem like that difficult of a concept. Now could anyone else, that can actually read, please advise me?
trade silver high risk. as you already know, if it goes 10 cents the other way, you will loss $50. that's counting standard lot in silver which 1 lot is 5000troy. if you want lower risk, just trade gold. 1 lot gold is 100troy. and if you want to start as small as $200 i will certainly not recommend you to jump into silver. it's very high risk (and high return) but with $200, trade 0.01lot (1troy) of gold is quite safe. low risk with reasonable returns. targeting 20% return each month is very rationale. even 50% monthly return is not impossible. if you insist trading silver, i would recommend a minimum $500 to trade 0.01lot (50 troy) silver. find a broker that allow micro lot. watch the trade size very carefully. what i recommend is a safe trading that let you have consistent profit without affected by too much fear when the market is against you. any size more than 0.01lot will give you extra fear and easily take all your money away. (or make you rich very quickly) in short, any size more than that would not be trading. it would become gambling. so, it's your choice. trading consistently or gambling.
There is no such thing as "high profit yields and low risks". Risks is inversely related with yield. Higher risks demanded higher yield to compensate for that dangerous risks involved. Read up some books from your local library instead. you're a "sucker" waiting to be rip by those scammers
The process of trading gold online is similar to forex trading. The trading strategy remains the same; you buy low and sell at high prices. Gold is traded through over the counter or the OTC method just like trading currencies. Here, there is a direct relationship between the buyer and the vendor. Online gold trading is less risky as compared to trading currencies. This is attributable to the differences in parameters that determine the prices of currencies and gold. One of the best means to trade gold online is spot trading. Spot trading gold presents several advantages over trading currencies. Below are some advantages of spot trading gold.
High risk forex trading gold silver
One of the best advantages about trading gold over forex trading is that it doesn’t require complex analysis. Beside, you do not need much knowledge about the market for you to be successful. Online gold prices aren’t affected by many factors unlike trading currencies. This reduces the amount of parameters needed to perform the analysis.
The patterns of gold market are actually somewhat predictable unlike forex market. The online gold trading is becoming more appealing to investors day by day owing to the easy predictable patterns. The gold traders do not need some genius mind to provide for the patterns in the gold market. Again, few factors affect the gold patterns leading to easy predictability of its future prices. One of the main factor affecting online gold prices is the value of US dollars.
When the markets in Europe and the New York market are both open, that when’s the prices tend to become the highest. That means for traders in the United States there is a time frame of about four hours where the liquidity is at it’s highest. Liquidity tends to drop off late in the day closest to the time the markets close.
A true 24 hour market: The currency markets offer you with the capacity to invest Managed Forex accounts and other currency investment products at any time since the market is open 24 hours a day and 5.5 days a week. This is something that hasn’t been offered in the past due to market close hours.
Due to the round the clock, and round the world, nature of trading gold and silver, huge trades can be conducted virtually instantly which makes for a real rough and tumble trading environment where supply and demand are the sole real rules.
If you would like to be involved in this exciting, and volatile, market you can do so. Precious metals can be traded with Forex brokers online. Each agent will enjoy their own fees and restrictions so you should be prepared to spend some time shopping around so you identify the best fit for you and your needs.
There are many similarities between precious metals trading and Forex trading, one of those similarities is the high risk nature of the market. This isn’t the place for an amateur to be. You have to take a few time to find out how this market works and even then there are not any guarantee’s.
There are many places online where you can develop the skills, and even set up free practice accounts. This step is essential if you do not want to lose your shirt. Ignorance is the number one way to lose a great deal of money when it comes to trading precious metals.
Spot gold price is only one of many of the modalities and concepts you will need to learn before you can hope to have any success trading precious metals. If you are serious about learning this kind of trading you can really make a great deal of money. Just remember that the level of success you will have will remain in direct proportion to the notice that you have.