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FXexpert
06-28-2010, 08:13 PM
Hey everyone,

Does anyone here trade silver? If so how has it been for you so far in the way of profits? I'm looking to get into Silver trading on a rather small scale as an addition to my FX trading, any tips from anyone who's already trading Silver would be greatly appreciated :)

lizerzoltan
06-28-2010, 08:23 PM
i am afraid FXopen's precious metal spreads arent that competitive as some other brokers.
maybe the ECN is, idk, but on standard like 1$ gold spread, nah...

DollarBull
06-28-2010, 10:29 PM
i am afraid FXopen's precious metal spreads arent that competitive as some other brokers.
maybe the ECN is, idk, but on standard like 1$ gold spread, nah...

Precisely the same reason I do not trade commodities. Not just FXOpen but almost all broker sites known to me have very undesirable spreads on commodities perhaps due to the greedy commodity market makers. Forex is dealt by big banks, but I don't think the same banks handle commodities. Banks are able to provide high liquidity for fx, and hence we get small spreads.

Strategies decide if spreads are important for trading. For those who tend to make in small profits, spreads are very important. For those who like to stay holding a trade for extended periods like many days/weeks and hoping to make many hundred (and thousands in the case of Silver) pips in each trade, spreads may not be that important.
For the latter strategy one needs deep pockets to withstand wild swings.

Gold and Silver prices are emotionally driven. (e.g. Risk aversion havens). But the real catchy prize is in some other commodities. For example, Copper has made a big run. So did many rare earth elements. These may be good short-worthy candidates, but can't find brokers who offer these. It would be nice to find a good specialized commodity brokerage (or FXopen expanding into that direction) offering many of them including food/meat/drinks (soy, beef, orange juice) and other such items (e.g. Oil).