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HomeGoldWhat is spot silver margin trading?

What is spot silver margin trading?

Spot silver margin trading means that in the silver trading business, market participants do not need to transfer the full amount of funds for the silver traded, but only need to pay a certain percentage of the total amount of silver trading to start trading. To put it more simply, it is to use the principle of leverage to use the money to make the most of the money.

What is Spot Silver Margin?

Because the exchange implements the silver spot trading margin system. The spot silver margin is generally said to be a guarantee fund for spot silver before the trading operation can be carried out, but it is temporarily frozen. If the order is cancelled (position closed), the margin fund will return to the account.

Margin trading also means that investors only need to provide a part of the funds as a margin, and they can carry out large-scale transactions beyond their own financial strength, which improves the utilization rate of funds. Under normal circumstances, the security deposit can be regarded as a deposit, and you only need to pay a certain deposit first to have the right to trade commodities. The proportion of the deposit is the leverage ratio.

The margin in silver spot is divided into four types: 3%, 8%, 12%, and 20%. Determined based on the total amount of initial injection funds.

Spot silver margin calculation formula

Margin = opening price * specification * lot * margin ratio

However, during the process of the silver spot trading margin system, the exchange can adjust the trading margin standard according to the market risk:

  1. When the position reaches a certain level;
  2. When the market fluctuates greatly and a unilateral market occurs;
  3. In the event of a national statutory holiday;
  4. The Exchange believes that the market risk has changed significantly;
  5. Other circumstances deemed necessary by the Exchange.

If the Exchange adjusts the trading margin standard, all positions of the product will be settled according to the adjusted trading margin standard at the time of settlement on the day.

Silver margin trading means that in the silver trading business, market participants do not need to transfer the full amount of funds for the silver traded, but only need to pay a certain percentage of the total amount of silver transactions. In spot silver trading, investors can use the leverage ratio to obtain the maximum profit with the smallest capital.