Trading in spot metal market in a speculative manner gives the trader to have a good option to traditional means of investing in precious metals, and where substantial profits, as well as losses can be happened. Generally traded precious metals are gold bullion, coins, and mining stocks. These metal forms are treated differently according to its market value. Precious metal contracts are also valuable trading tools for commercial producers and the users of the above metals.
Trading of precious metals is similar to stock in the exchange. The traders conduct activities on behalf of their clients for buying/selling precious metals. Online trading is more convenient and easy, and have full and mini-sized contracts based on the quantity of precious metals.
There are two ways of trading in precious metals market, which include metals traded on the futures and spot markets. A contract of silver is 5000oz while contract of gold is 100oz. Spot metals contracts are normally sold or brought on a value date of 48 hours. This contract can also be rolled over on a daily basis thereafter. On the future contract, buying or selling is happening in a specific settlement date in the future. For e.g, June Gold, can be bought in February for June settlement.
This information provided by Orient Financial Brokers (OFB), licensed and regulated by Central Bank of the UAE , to conduct brokerage in Foreign Exchange, Commodities and Money Markets. OFB offers a number of commodity futures contracts including all main oil, grain and metal contracts. (Click here to see the lists)Labels: Spot Metal Trading