Trading silver on Forex
At one time, silver was considered one of the leaders in exchange trading; this metal was actively sold and bought on
most of the world's exchanges.
Trading silver at the moment has also not lost its attractiveness, especially since it can be carried out by almost anyone who has the necessary amount to start trading.
The technical instrument with which trading is the XAG/USD or XAG/EUR currency pair.
In the first case, silver is bought for American dollars, in the second for euros, the choice of instrument depends on which currency you are more familiar with and which one is more convenient for you to work with.
Most Forex professionals prefer to trade silver; unlike gold, this metal does not react so sensitively to rumors and unverified news, which means it has a more stable trend.
But despite this, the XAG/USD and XAG/EUR currency pairs have high volatility; the price of silver can change by 1-2 percent within one day, which allows you to use this instrument in almost any forex strategies.
True, one cannot fail to note the rather high size of the spread, the value of which starts at best from 4 points and sometimes grows to 100, so silver is rarely used for short-term strategies, because to make a profit you need to overcome a large spread size.
The price of silver is influenced by such events - reports of a reduction or increase in silver production, demand for precious metals during economic crises, increased consumption of silver in industry. Depending on the currency pair, the trend is also affected by changes in the value of the US dollar and euro.
Silver has been and remains one of the trader’s favorite instruments; such popularity is associated with good predictability of its value and high volatility, which creates excellent conditions for making money. When conducting technical analysis, you can use the same indicators as for any currency pair.
At the moment, the price of silver has approached the lower limit of the support level if we consider the history of price movements over the year, so there is a high probability of an upward trend. Which makes it more promising to conclude short-term and long-term purchase transactions.