Gold & Silver on Your Terms - Trade Precious Metals Without the Safe!

What Is Precious Metals CFD Trading

Precious metals CFDs (Contracts for Difference) allow investors to profit from price movements in assets like gold and silver—without owning the physical metal. Here's how it works:

Core Concepts
  • No Physical Delivery – You're trading on price movements, not buying bars or coins. No need for storage or logistics.
  • Two-Way Trading – Go long (buy) or short (sell), depending on your market outlook.
  • Leverage Trading – Control larger positions with less capital. (e.g., with 1:50 leverage, $2,000 controls a $100,000 gold contract).
Products & Specifications
Instrument Contract Size Quoted In Key Influencing Factors
Gold (XAU/USD) 100 oz / standard lot USD per ounce U.S. dollar index, inflation, geopolitical risk
Silver (XAG/USD) 5,000 oz / standard lot USD per ounce Industrial demand, gold correlation
Platinum (XPT/USD) 100 oz / standard lot USD per ounce Auto catalyst demand, mining supply
Palladium (XPD/USD) 100 oz / standard lot USD per ounce Emission standards, Russian output
Trading Process

Choose a Metal

Gold (XAU/USD): Most liquid, suitable for beginners.

Silver (XAG/USD): More volatile, ideal for aggressive traders.

Choose a Direction

Buy (Long): Expect the price to rise (e.g., during Fed rate cuts).

Sell (Short): Expect the price to fall (e.g., when the U.S. dollar strengthens).

Set Trade Parameters

Contract Size:1 standard lot of gold = 100 oz (~$200,000 value; margin ~$4,000 with 1:50 leverage)

Mini (0.1 lot) and micro (0.01 lot) sizes available

Leverage: Typically ranges from 1:10 to 1:200 (regulated by jurisdiction)

Stop Loss / Take Profit: Automatically close trades to limit risk

Open, Hold & Close the Position

Profit/Loss Calculation:

Long P/L = (Closing Price – Opening Price) × Lot Size

Short P/L = (Opening Price – Closing Price) × Lot Size

Swap/Overnight Interest: Holding a position overnight incurs interest, based on interest rate differentials between currencies.

Key Rules & Costs
  • Leverage – Magnifies both gains and losses (e.g., 1:50 leverage with 2% price move = 100% return/loss)
  • Spread – Difference between buy and sell prices (e.g., gold spread = $0.30/oz)
  • Swap Rate – Longs pay financing (LIBOR + markup), shorts may receive interest
  • Margin Call / Stop-Out – If margin drops below threshold (e.g., 20%), positions are forcibly closed
Advantages & Risks

Advantages

Safe-Haven Appeal: Gold often rises during crises; useful for hedging against equity risk

High Liquidity: Gold trades over $150 billion daily; quick order execution

24/5 Access: Trade nearly anytime during weekdays across global markets

Risks

Leverage Risk: A price move against you can trigger rapid margin calls (e.g., silver moved ±15% in a single day in 2020)

Overnight Costs: Holding long-term positions may incur significant swap fees

Market Manipulation: Thin markets like palladium are vulnerable to large players