XM is very famous for foreign exchange, but it is not a company that can only do Forex. In addition to foreign exchange, you can also trade stocks, virtual currencies, energy and precious metals. Here is an article about trading precious metals.
Stocks that can be traded for precious metals
You can trade the following instruments on XM Trading. There are differences in minimum lots, maximum lots, and even leverage depending on the symbol. Trading hours are different, so please check carefully before trading.
| Leverage | Minimum Lots | Max Lots | Trade Time(Japan Time) | |
| GOLD | 888 | 0.01 | 50 | Monday-Thursday: 07:05 – 05:55 Friday: 07:05 – 05:50 |
| SILVER | 888 | 0.01 | 50 | Monday-Thursday: 07:05 – 05:55 Friday: 07:05 – 05:50 |
| PALL | 22 | 1 | 45 | weekday: 06:05 – 4:55 |
| PLAT | 22 | 1 | 100 | weekday: 06:05 – 4:55 |
GOLD
Gold is one of the oldest currencies in human history. It has a long history that goes back over 100 years, making it easy to analyze the market, making it ideal for technical traders. Gold tends to be bought in times of social unrest and war. Gold prices are more likely to fall if society stabilizes, and more likely to rise if social unrest develops.
SILVER
Silver is a metal traded all over the world because of its large trading volume and high volatility like gold. Silver is in very high demand and is used in electronic semiconductors, dental applications, solar cells, and more. Since gold and silver basically have the same direction, the market tends to move in the same way.
PALLADIUM
Palladium is a kind of platinum metal and is generally called a rare metal. A staggering 75% of the annual calculated palladium is used in the automotive industry. Russia and South Africa are the first and second producers, and the price is affected by the production system and political situation. Due to Russia’s runaway in recent years, there is a risk that this brand will fluctuate greatly.
PLATINUM
Silver is a kind of rare metal, and even rarer than expensive gold. Like palladium, most of the demand for silver is as a catalytic converter. Since the chart of platinum may be linked with other metals, we would like to carefully watch the price divergence. Each year, mines produce only 130 tons of platinum compared to 1700 tons of gold.
Features of precious metal trading
There are some things to keep in mind when trading precious metals.
Saturdays, Sundays, and holidays
Precious metal trading can basically only be done on weekdays. In addition, if gold cannot be traded or the chart does not move even during trading hours on weekdays, the market may be closed on a holiday. This includes Christmas and New Year holidays. Check the official page of XM from time to time.
contract month
Please note that XM futures precious metal CFDs have expiry dates. Palladium and silver have the following rules, so keep them in mind.
| contract month | |
| PALL | 3,6,9,12 |
| PLAT | 1,4,7,10 |
By the way, after accessing the official website, check the calendar from the upper menu “Trading” → “Precious metals” for the maturity date.
swap point
Swap points occur for gold and silver. Swap points can also be confirmed on the official page as above.
Spread
Spreads vary by instrument and account type. This can also be confirmed on the official page, but please refer to the table below. Also, XM’s precious metal spreads are not so narrow compared to other companies, so it is not very suitable for scalping trades. The table below shows the minimum spreads.
| Gold | Silver | |
| Standard | 0.35 | 0.035 |
| Micro | 0.35 | 0.035 |
| KIWAMI | 0.15 | 0.022 |
| Zero | 0.2 | 0.02 |
| PALL | 4.25 |
| PLAT | 10.01 |
high volatility
Especially when it comes to gold, it tends to be very volatile. Among the commodities and currency pairs that can be traded, gold is notorious for its volatility. Too many lots can lead to unexpected losses. Especially when big economic indicators or political events occur, it is necessary to cut losses early.
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