Silver Trading

Silver Trading Defined and Explained

For over four thousand years silver has been regarded as a form of money as well as a foundation base for jewelry. However, since the end of the silver standard, silver has lost its role as a common form of currency.

Silver Trading Prices/Rates

The price of silver is notoriously volatile, as it fluctuates between industrial and store of value demands. At times this can cause wide ranging valuations in the market, creating volatility and being the darling of traders.

5,000 oz Silver Futures

The contract size for a primary silver contract is 5,000 fine troy ounces.  The contract is for 5,000 troy ounces (±6%) of refined silver, and not less than .999 fineness, in cast bars weighing 1,000 or 1,100 troy ounces each. The tick size is $.001 per troy ounce, or $5 per contract

mini-sized Silver Futures

The contract size for a mini-sized Silver Futures contract is 1,000 troy ounces. The mini-sized contract is for refined silver, and not less than .999 fineness, in cast bars weighing 1,000 troy ounces or 1,100 troy ounces each. The Tick Size is $.001/troy oz., or $1.00 per contract.

Silver Trading Strategy

Silver is a small market.  This translates into good volatility for Silver traders who are seeking profits. It doe not take much capital to move silver since its market is so small and speculators flock to this volatility, amplifying silver’s moves to a greater degree than in any other major commodity. 

Silver Trading Software

Ask any silver trader, producer or general investor what trading tools or types of financial analysis he is using to track silver prices and you're probably going to hear a list of different technologies and methods.  However, having the right tool for the job is important.  Trading software can be used to boost an existing approach by supplying an inter-market perspective.

The key to a silver trading system is its ability to forecast moving averages.  One of the better silver trading software products is VantagePoint trading software.  This software can help “see” what is likely to happen in the silver market before other traders (using only single-market analysis) catch wind of it.

Silver Trading Major Indicators and indices

The contract months for Silver trading are the first 3 consecutive months; 2 Jan, 2 Mar, 2 May, and 2 Sep; 5 July and 5 Dec.  The last trading day for silver trading is the third to last business day of the maturing delivery month.

Silver Trading News

There are multiple sources for finding news and information on purchasing and trading silver as an investment metal.

Most major newspapers and financial resources cover the pricing and sales of silver.  Some of the specialty information sources include:

• The silver institute
• Johnson Matthey plc issues reports on platinum group metals and is a well-respected source of silver information.