Silver trading on Forex
Silver was once considered a leading commodity in exchange trading, actively traded on
most global exchanges.
Trading silver remains attractive, especially since it's accessible to virtually anyone with the necessary funds.
The technical instruments used for trading are the XAG/USD or XAG/EUR currency pairs.
In the first case, silver is purchased for US dollars, in the second for euros. The choice of instrument depends on which currency you are more familiar with and which one you are more comfortable working with.
Most Forex professionals prefer to trade silver, as unlike gold, this metal is not as sensitive to rumors and unverified news, which means it has a more stable price 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.
However, one cannot help but note the rather high size of the spread, the value of which starts at best from 4 points and sometimes grows to 100, therefore silver is rarely used for short-term strategies, because in order to make a profit it is necessary to overcome a large spread size.
The price of silver is influenced by events such as reports of a reduction or increase in silver production, demand for precious metals during economic crises, and increased silver consumption in industry. Depending on the currency pair, the trend is also influenced by changes in the value of the US dollar and euro.
Silver has been and remains a favorite trading instrument. Its popularity stems from its highly predictable price and high volatility, creating excellent conditions for profit. Technical analysis can use the same indicators as any currency pair.
Currently, the silver price has approached the lower support level based on its price history over the past year, so there's a high probability of an uptrend emerging. This makes short- and long-term buy trades more attractive.
