Guide to Silver Spread Betting

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Financial Spreads: Spread Betting and CFD Trading

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Silver Spread Betting

Silver Spread Betting

A guide to spread betting on Silver:

Where Can I Spread Bet on Silver?

When using a FinancialSpreads account clients can take a position on a variety of commodity markets. Our CFD and spread betting markets include silver, crude oil and gold.

Where Can I Access Live Silver Prices?

A FinancialSpreads account provides clients with real-time pricing on more than a thousand CFD and spread trading markets such as Silver and a wide variety of other commodities, equities, indices and foreign exchange markets.

Where Can I Get Live Silver Charts?

When trading with a FinancialSpreads account clients can use real-time charts for Silver and more than a thousand other markets.

As well as multiple chart types, the package has an array of features:
Example FinancialSpreads commodities chart:

Commodities Spread Betting Charts



A Guide to Spread Trading on Silver

Let's suppose you sign into the Financial Spreads site and the current price is:

  Silver Rolling Spot Sell

1725.1
Buy

1728.1


Here is a guide to how the market works.

The MarketSilver Rolling Spot
Spread1725.1¢ - 1728.1¢
How the Spread WorksYou can spread bet on the Silver Rolling Spot market to push:

  Spread Betting Higher than 1728.1¢, or
  Spread Betting Lower than 1725.1¢

This is a 'Rolling' market so it does not have a closing date. If you don't close your trade and the trading session ends then your trade will automatically roll over into the next session.

Note that if the trade is rolled over then you will either pay or receive interest for overnight financing based on whether you are speculating on the market to increase or decrease. For more details also see Rolling Spread Betting.
Points (Units) TradedFinancial spread bets on the Silver market are priced in £x per cent.

Where a cent is 1¢ of the commodity market's price movement.

E.g. if Silver changes by 40.0¢ then you would lose/win 40 multiples of your stake.
Stake SizeYou choose how much you would like to stake per cent, e.g. £3 per cent, £5 per cent, £20 per cent etc.
Short Staking ExerciseAs an example, if you have a stake of £3 per cent and Silver moves by 30.0¢, you would gain or lose £3 per cent x 30.0¢ = £90.


Worked Spread Betting Example - Taking a Long Position on Silver

Spread betting on the commodity to move up

You Choose to Buy or Sell Silver to move:

  Spread Betting Higher than 1728.1¢? or
  Spread Betting Lower than 1725.1¢?

Let's Say You Choose to Go Long   Spread Betting Higher than 1728.1¢
You Choose Your Stake, Let's Say You Opt For £5 per cent
So What Now?
  • You win £5 for each cent Silver moves above 1728.1¢
  • You lose £5 for every cent Silver goes lower than 1728.1¢
If You Are Betting on a Market to Rise Your Trading P&L = (Final Price - Initial Price) x stake
 
Scenario 1
Silver moves higher and the financial spread betting market is revised and set at 1755.7¢ - 1758.7¢, therefore you would see this on Financial Spreads:   1755.7   1758.7
Take a Profit? You can opt to leave your trade open or close it, i.e. close your trade to lock in a profit. For this example, you opt to close your trade and sell at 1755.7¢.
Your Trading P&L = (Final Price - Initial Price) x stake
(1755.7¢ - 1728.1¢) x £5 per cent
27.6¢ x £5 per cent
Your Trading P&L = £138.00 profit
 
Scenario 2
Silver drops and the spread betting market is revised to 1702.4¢ - 1705.4¢, i.e. Financial Spreads would show:   1702.4   1705.4
Close and Limit Your Loss? You can opt to leave your spread bet open or close it and restrict your loss. In this example you choose to close your bet by selling the market at 1702.4¢.
Your Trading P&L = (Final Price - Initial Price) x stake
(1702.4¢ - 1728.1¢) x £5 per cent
-25.7¢ x £5 per cent
Your Trading P&L = -£128.50 loss


Worked Trading Example - Selling Silver

Financial spread trading on the commodity to fall in value

You Choose Whether to Buy or Sell Silver to go:

  Spread Betting Higher than 1728.1¢? or
  Spread Betting Lower than 1725.1¢?

Let's Assume You Decide to Go Short   Spread Betting Lower than 1725.1¢
You Select Your Stake, Let's Assume You Choose £4 per cent
What Happens Next?
  • You lose £4 for every cent Silver rises above 1725.1¢
  • You win £4 for every cent Silver decreases lower than 1725.1¢
If You Are Speculating on a Market to Go Down Your Trading P&L = (Initial Price - Final Price) x stake
 
Scenario 3
Silver moves lower and the market is adjusted to 1691.7¢ - 1694.7¢. I.e.   1691.7   1694.7
Close for a Profit? You may choose to let your bet run or close it to take your profit. In this instance you choose to settle your position by buying at 1694.7¢.
Your Trading P&L = (Initial Price - Final Price) x stake
(1725.1¢ - 1694.7¢) x £4 per cent
30.4¢ x £4 per cent
Your Trading P&L = £121.60 profit
 
Scenario 4
Silver increases and the spread trading market becomes 1750.4¢ - 1753.4¢, therefore Financial Spreads would show:   1750.4   1753.4
Time to Restrict Your Loss?At this point, you can choose to let your spread bet run or close it, i.e. close your position and restrict your loss. For this example, you decide to settle your bet and buy the market at 1753.4¢.
Your Trading P&L = (Initial Price - Final Price) x stake
(1725.1¢ - 1753.4¢) x £4 per cent
-28.3¢ x £4 per cent
Your Trading P&L = -£113.20 loss

Where Can I Practice Financial Spread Betting on Silver?

FinancialSpreads provide a Demo Account where investors are able to test new trading theories, use trading orders, practice trading and access the real time charts on spread trading and CFD markets like Silver.

The Demo Account is not limited to the above market; you can also get trading experience across an array of FX rates, commodity markets, stocks and shares and indices.

Open a Free CFD Trading / Spread Betting Demo Account


Silver Trading Information and Data

Further news and information on the silver markets: Financial Spreads is not responsible for the content of external / third party websites.



Silver Commitments of Traders Report - 18 Apr 2017


Futures Only Positions, CMX , Code 84691, (Contracts of 5,000 troy ounces)

Reporting Firms Non-Reportable Positions
Non-Commercial
Commercial Total Reportable
 
Commitments Open Interest Commitments
Long Short Spreads Long Short Long Short Long Short
128,378 24,491 26,918 46,878 163,710 202,174 215,119 227,984 25,810 12,865
 
Changes from 11 Apr 2017 Change in Open Interest Changes from
Long Short Spreads Long Short Long Short Long Short
-3,591 -1,963 8,116 -22 2,396 4,503 8,549 7,812 3,309 -737
 
Percent of Open Interest for Each Category of Trader
Long Short Spreads Long Short Long Short   Long Short
56.3% 10.7% 11.8% 20.6% 71.8% 88.7% 94.4%   11.3% 5.6%
 
Number of Traders in Each Category Total Traders  
Long Short Spreads Long Short Long Short    
98 43 49 33 40 155 118 206    
 
Long/Short Commitments Ratios   Long/Short Ratio
Ratio   Ratio Ratio   Ratio
5.2:1   1:3.5 1:1.1   2:1
 
Net Commitment Change  
-1,628  


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