How to buy/sell silver on FxPro
Okay so for your own reasons you have decided you'd like to buy/sell silver. That's a good start. Let's see what lies ahead of you before you can officially state that you have a position in silver. If you'd like to buy/sell silver, there are two important things you need to do:
- Decide which forms of silver you would like to trade.
- Find a broker that provides that form of silver and provides conditions that suit your needs.
Below we will go through the pros, cons, potential fees of each product category, including silver ETF, silver forex, silver CFD, silver futures, and silver options.
Silver is an available investment at FxPro, you can use the following vehicles to invest into silver:
- Silver CFD
Disclaimer: 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
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74% of retail CFD accounts lose money
74% of retail CFD accounts lose money
Ways to buy/sell silver on FxPro
Silver CFD
What is a silver CFD?
A silver CFD is a financial contract that pays the differences in the settlement price between the open and closing trades (CFD is short for 'contract for difference'). It is popular in the forex and commodities products. When you think of silver CFDs, the underlying asset can be either silver ETF or silver forex. When you buy/sell silver CFDs, you place order on the price change of the underlying asset. It means that:
- you don't own the underlying silver ETF. The price of a silver ETF CFD follows the price of silver ETFs listed on exchanges.
- there is no delivery as in the case of a spot forex market. The price of a silver CFD follows the price of silver forex in the spot market.
According to the ESMA regulation, the leverage on ETF CFDs is 1:5, while on XAGUSD CFD is 1:10. You should consider using Stop-Loss in order to manage your risk. It is important to note that even if you use that, you can lose more during gaps. Gaps are sharp breaks in price with no trading occurring in between. In this case, the price can jump over your Stop-Loss level causing higher loss than you set before. Please be aware that trading on margin and other leveraged trading strategies could be extremely risky in times of high market volatility. Sharp price moves could quickly wipe out your invested capital. If you would like to learn more about CFDs, read this article about CFD trading.
| Can you use leverage/go short? | Yes |
| What can be the important costs? | Spread, Swap / financing charge (cost for holding a position overnight) |
| Ticker(s) of silver CFD | Ticker of the underlying asset, e.g. XAGUSD, SLV |
| Further things to consider | Silver spot forex CFD market is open 24 hours a day, except weekends |
Bottom line
We have given you a rundown of the main instruments available at FxPro for investing in silver. Each one has different features and their availability varies from broker to broker. If you are interested in other vehicles, want to check out brokers that offer these instruments or want to read more about the history of silver, take a look at our article.
If silver is not your favorite in the precious metals asset class, check out our article on investing in gold.
Should you decide to invest in silver, bear in mind that these trades involve a certain amount of risk. We strongly suggest that you contact an investment advisor, as this article is not meant to be investment advice.
Leverage is a double-edged sword and can dramatically amplify your profits. It can also just as dramatically amplify your losses. Trading foreign exchange/CFDs with any level of leverage may not be suitable for all investors.
The information provided in this review do not constitute and should not be regarded as an investment advice.
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74% of retail CFD accounts lose money
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