Metals

What are metals CFDs?

A contract for difference (CFD) is a derivative financial instrument traded on the market. It does not require buying or selling any underlying assets, so it’s basically a way of speculating on the direction of the asset’s price without having to take ownership of it. They have a great marketing reach; the real MVPs of the stock exchange. With Metadoro, once you invest in precious metals, you can gain exposure to metals markets through CFDs. It opens the door to trading gold, silver, palladium, and platinum, precious metals that are always good portfolio diversifiers. Feel free to use the company’s platforms to trade gold, silver and other metals.

Pricing

Gold, silver and platinum futures contracts are the underlying assets of CFDs when it comes to metals markets. As you might have guessed, they are traded on stock exchanges accordingly. Where do you trade gold and silver? It’s common practice to turn to international stock exchanges delivering pricing solutions and facilitating trading precious metals, like gold, silver, and palladium. You might already know some of them:

• - the London Metal Exchange;
• - the Commodity Exchange Inc. of New York;
• - the Shanghai Gold Exchange.

There are also bullion markets, where traders deal in bullion gold and silver only. But that’s beside the point. The rule of thumb is, precious metals (gold, silver, you name it) are traded in troy ounce units (31.1 grams). With Metadoro, you can trade gold and silver against currencies, but please remember: you can only trade platinum and palladium in U.S. dollar. We’re talking about billions of dollars’ worth of precious metals.

Minimum trade size

The minimum trade size on metals markets tends to be at least 100 oz t; that’s the amount stock exchanges set as default. But consider this: the company capitalises on CFDs, paving the way for its clients to execute trades of 1 oz t minimum on the stock exchange; in other terms, 0.01 lots, which is a really good deal!

Risks

When push comes to shove, the metals market is very risky from a volatility standpoint with its price fluctuations, especially when you choose high leverage as it goes arm in arm with big losses. But that’s on paper. We are all for marketing them, though: trading precious metals, such as gold, silver, platinum, palladium, can be a recipe for success, so if you want to avoid margin schemes in the long run, we suggest you get behind it.