What are silver commodities?
commodity is something for which there is demand; Silver commodities are those that consist of elemental metal silver. The silver commodities market includes cash and futures. Both are traded all over the world. Silver commodity trading is carried out by major corporations and mines, hedge funds and futures funds and individuals. The span of the life of silver commodities is determined by the month of expiry. Contracts that expire in July and December have a 60 -month life; Contracts that expire in January, March, May and September have a 23 -month life. Most trading is carried out in the "nearby" month concerning a contract that has at least a month to the end. The size of the silver commodity commodity contract is 5,000 Trojan ounces (155 517,384 grams). The actual contractual Cenaoprebro would not be displayed as $ 30 but as 30,000. Another higher price would be 30.005 and another lower price of 29.995. Each addition is therefore worth $ 25 for each contract that the trader controls. The maximum number of contracts that mayThe Back -up is 6,000 or 30 million troy ounces (933 million grams) of silver.
The contract is a promise to buy or sell a specified amount of silver after the contract. Most contracts buy or sell speculators, people who bet on the price rising or down rather than people who really want to own silver. A merchant who thinks that the price is falling will conclude a contract for the sale of silver; It is said to be "short". A trader who agrees to buy this silver is said to be "long" and think that prices will rise. The trader who is long will eventually conclude his position and will be a "flat" sale of his contract.
The merchant will be Need If you want to leave your position before the first computing day, which is two working days before the first month of contracts. Brokers will not let the trader continue to hold position until the first day if the trader does not have enough money to cover costsfor the whole contract. For example, if the day before the day of warning of the silver price for $ 30 per Trojan ounce (31.1 grams), the trader would need more than $ 150,000 in his account to prevent his broker from his position. On the other hand, a real silver commodity manufacturer, such as a mine, would add a metal that must test 99.9 percent net.
The risk of a trader will increase if relatively few contracts are traded. According to Nymex, trading with futures futures Silver Commodits on average almost 109,000 contracts a day. While 109,000 contracts sound like a big number every day, it is not. For comparison, the most popular future in the stock market, S&P 30mini, trades more than 2 million contracts A10 -year -old treasury bonds contracts about 1.5 million contracts daily.