Most often than not:
During your everyday life, you very well could chance upon goods or merchandises made of silver.
They are pretty common in fact.
Do you also know that you have a chance to participate in trading silver – the raw material – as well?
Instead of just using silverware when you eat, you could use silver as a vehicle for PROFIT!
Commodities are raw materials that could be traded in the global market.
These raw materials are then further prepared to create other end-products (in this case silverware or even coins).
These commodities are being traded in exchanges located in different parts of the world.
These continuous activities tend to attract plenty of participants thus creating all these fluctuations in the market prices of such commodities, reflecting the shifts in the imbalance between supply and demand.
Silver is a precious metal that is then utilized to create jewelry, silverware, currencies, and electronics. This business of trading silver has existed throughout history as well, and it still continues to attract widespread participation.
Because of silver’s popularity among traders and investors alike, enough volatility and liquidity are produced for profit opportunities to present themselves.
This graph provides you a quick preview regarding the market value of silver over the past several years:
Silver traders could buy and sell either spot or futures contracts:
Spot contracts are those contracts whose prices reflect the current market price of silver.
On the other hand…
Futures are those contracts whose prices reflect that of the prices where the buyers are willing to pay for silver contracts which are set to be delivered at a future date.
Kindly keep in mind that:
A futures contract price is NOT a guarantee that silver prices would eventually match that price once the agreed-upon delivery date has arrived.
Futures transactions are usually used to manage risk (or hedges), or as avenues to speculate.
Contracts for Differences or CFDs are kinds of derivatives.
Let us backtrack a bit and discuss derivatives:
A derivative is a financial instrument whose price is being determined from the price of its underlying asset (i.e. silver).
A CFD agreement comprises of the settlement in cash of the difference between the contract’s opening and closing prices.
It is an arrangement to exchange the valuation difference between the contract’s price when it was initially opened and the contract’s price once it was finally closed.
Trading CFDs has an advantage over trading other instruments.
Take for instance in trading stocks:
There’s an actual transfer of shares that’s being done; or in the case of trading in some commodities, wherein there’s an actual transfer of physical goods that’s taking place.
Those kinds of transfers are not present in CFD trading, thus it is more efficient in terms of time and cost.
Check out this short video to know more about the benefits of CFD trading:
Silver traders find CFDs beneficial as they are being given profit opportunities notwithstanding the general market’s direction.
Why do we say this?
This is because CFD traders can either go long (buy at a lower price then be able to sell at a higher price for a profit), or go short (sell at a higher price then be able to buy that back at a lower price for a profit).
And these CFDs also allow those who trade silver an avenue for diversification (a risk management tool).
Here’s the deal:
If you’re still reading this part, then you have to admit that we now have your full and undivided attention, haven’t we?
With confidence, we recommend that you check out the platform of the Plus500 broker right this instant.
What is Plus500?
Plus500 is one of the industry’s leaders in providing CFD trading services.
It is well-known for providing top quality service and trading system for foreign exchange, commodities, stocks, indices, ETFs, and the latest instrument to hit the market: cryptocurrencies like Bitcoin, Ethereum and others.
Plus500UK Ltd, which was founded in 2008, is the company behind the Plus500 platform. This is a publicly-listed company that is based in the United Kingdom.
And in 2018, Plus500UK Ltd was included in the UK FTSE 250 index as a leading mid-cap company.
It is quickly increasing its scope and growth as a leading CFD provider in Europe, Asia and other regions as well.
And another thing:
The Plus500 platform is proud of having more than 2000 financial instruments, which it offers to over a million clients – which will soon further increase once you get on board.
Here’s what you need to know:
The company is regulated by FCA – or the Financial Conduct Authority.
This regulatory body has specific rules and regulations which guarantee that Plus500 provides top quality and fair services to you and all of its other clients.
If you are concerned about your money, which is rightfully so, the company keeps your – and also their other clients’ – money in segregated bank accounts to make sure that your hard-earned funds are all accounted for.
And to top it off…
The company also offers 24/7 customer service support if ever you find yourself having questions or issues with your trading transactions.
It is yet another proof that they are dedicated in providing you great service.
Next up is that we will discuss the platform’s features in more detail.
After logging in, your first impression is that the platform exhibits simplicity and yet thoroughness as well as it contains the information that you need in executing your trades.
Plus500 affirms that the whole procedure beginning from registering for an account, to depositing money, to making trades, and finally to withdrawing your money, is as seamless for you as possible.
When you first sign up for an account, you will notice that not only are you given the choice of signing up via your email address, but also are given the choices to signup via your Facebook or Google account.
That’s ease for you.
An advantage of the platform’s simplicity is that its features are organized. The home page is divided into different panes.
- Financial instruments are already categorized together via the following criteria:
- Popularity (if they are being frequently chosen by platform users)
- Risers and fallers (showing those instruments which moved the most be it increasing or decreasing in value)
- The instrument’s category (for example: stocks, foreign exchange pairs, commodities, etc.)
- And finally, you could create your own preferred list of assets
These assets being bundled together are necessary for it enables you to focus on a selected few – or maybe just focus on silver price action.
And being focused is a necessity if you will compete in the world of financial markets.
How could you create your own preferred list with Plus500’s platform?
Simply just select a name, and located on its right side is a ✰ icon.
Just click that icon, and once that icon has been filled, that financial instrument’s name is already included in your favorites group.
There’s also an option for you to search for an asset name directly, by typing the name on the search field located on the top of the pane.
Pros and Cons
- Proprietary and user-friendly platform
- Organized list of instruments including silver
- Price alerts for silver
- Take profit and stop loss orders
- Competitive bid-ask spreads
- Does not have a limit order option
- Restrictions in a few countries including USA and Canada
Let’s first talk about the pros:
The platform provides the information and features that are necessary for you to make informed decisions and executing your trades.
Aside from the list of instrument names being already organized (was discussed earlier), you also could make a trade directly from the main platform screen as it already displays the buy and sell icons as well.
In addition to that…
There’s an alert icon (look for the 🔔 icon located at the right side) that you may find useful as you could be alerted if silver’s (or any other asset) price is nearing a threshold level, without you having to be constantly glued to your screen and actively monitoring its price action.
The platform also offers a dark mode option which is ideal for a low-lighted environment.
The price charts are also immediately shown on the lower pane, thus there’s no need for you to spend extra time navigating to an asset name and pulling up its historical chart.
Charts are helpful for you even if you’re not a technical analyst as it will show the general trend of the price at first glance. You could also modify the charts by adjusting it to your preferred timeframe and/or adding your favorite indicators.
Plus500 also has stop loss and take profit order features.
How can you actually use these?
These are tools that will help you manage your risk and your over-all trade better, by taking some of your gains for safekeeping or limiting your losses if your analysis was proven to be incorrect.
They also provide competitive bid-ask spreads.
You will find this to be helpful because you will not be much affected by slippages once the market encounters these high-volatility and low-liquidity periods.
Now let’s talk about the cons:
Plus500 does not offer a choice to post limit orders; as orders are automatically market orders.
The company is experiencing some regional restrictions as they could not offer their services and platform to some areas outside of Europe and Asia.
The good news is that: these are only a few countries such as USA and Canada.
The platform also has an economic calendar which not only features macroeconomic announcements and news (at the country level), but also features scheduled reports and announcements which happen at the company level.
These kinds of information will help you prepare for possible price action catalysts at the macroeconomic level.
In addition to that:
There are quite a few tutorial videos which could help you learn about concepts and strategies on trading.
You could access them at www.plus500.com/TradersGuide.
How to trade gold CFDs using Plus500
The features of Plus500 make it easier for you to trade silver CFDs.
But before executing a trade:
It is necessary that you have done your analysis.
Once that is done, look for and click Silver.
And at the pane located at the right side, you are presented some options:
- Choose on whether to: buy or sell.
- Enter your trade amount.
- Enter your stop loss order (Close at loss).
- Enter your take profit order (Close at profit).
- There’s an additional section which is the advanced section. It is your prerogative if you would place a trailing stop there.
Interested to Trade Silver?
We can’t emphasize enough that…
You can now be a part of the vast – and still growing – community of silver traders by signing-up and trading with Plus500.
Plus500’s features offer you a competitive advantage in this challenging world of financial markets.
Kindly keep in mind that it is important to always manage your risk.