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How to Trade Silver?

Adam Lienhard
How to Trade Silver?

Silver trading is part of trading strategies in the financial markets. There are many reasons why silver trading is beneficial for traders, including:

Why trade silver?

Silver is a precious metal. It is characterized as a stock of fixed value and used as a haven for investment in times of instability in the economy. 

Silver is widely used in industrial, medical, electronic, and other industries. This significantly influences the demand for silver. This metal can also be affected by geopolitical, economic, and commercial factors. Traders can use technical and fundamental analysis to plan their silver trading.

Options for silver trading

There are many ways and instruments to trade silver. 

You can trade silver futures. Buy or sell silver at a pre-determined price at a specific time in the future with futures contracts. You need a margin deposit and prepare for a higher risk level than other methods.

Silver options. With silver options, you can buy/sell silver at a predetermined price and time, but without obligation. It has higher risks than other instruments.

Silver ETFs. This allows you to trade silver on the stock exchange and gain exposure to the value of silver without actually owning the physical metal.

Silver CFDs. Contracts for difference (CFDs) allow you to speculate on the price movements of silver without owning the physical metal. This method requires a margin deposit.

Silver spot. You buy or sell physical silver at the current market price. This method requires physical delivery of the metal and is not suitable for all traders.

How to trade silver?

There are many different trading strategies that traders use when trading silver. You can choose trend following, mean reversion, and breakout trading to start. Some traders also use a combination of strategies to maximize their returns and minimize their risks.

The best time to trade silver is during the European and North American sessions (from 7 am to 9 pm GMT.) However, silver is traded globally around the clock – choose what works best for you!

For making the right trading decision, use both technical and fundamental analysis. Apply Moving Averages, Bollinger Bands, Relative Strength Index (RSI), and Stochastic Oscillators to analyze the charts and follow the economic events in the calendar

Trade silver on a Cent account with Headway. Sign up now!