Silver is known to be the most malleable and conductive metal around, it is also known for its white coloration. Along with gold, silver has seen its own vast uses throughout history, most commonly in the form of currency and jewelry. While not as popular or rare as gold, the precious metal has played many a vital role in currencies and has been in steady movement with gold prices.
Much like every commodity, silver has its own ticker symbol, which is SI for the New York Mercantile Exchange (NYMEX) and ZI on the Chicago Board of Trade (eCBOT) respectively, contract value, and margin requirements. In order to be successful in trading this commodity, you must familiarize yourself with the aforementioned components and learn how to utilize them effectively.
Price Change Calculation
Due to each commodity’s contract being customized, each price movement possesses its own unique value. For silver’s contract, a movement of one cent is equivalent to $50. In order to determine silver’s figures on the NYMEX you must first get the difference between both the contract and exit price, once the sum has been found you multiply it by $50. To illustrate this better let’s say that the prices of silver move from $1,800 to $1750, you multiply the difference which is $50 by $50; this would result in a $2,500 change in its contract value.
Trades for Silver’s future contracts are conducted within the New York Mercantile Exchange (NYMEX) under the Commodity Exchange (COMEX), a division through open outcry. It is also possible to trade Silver electronically with the aid of the Chicago Board of Trade (eCBOT). Apart from those located in America, there also exists the Indian National Commodity and Derivatives Exchange (NCDEX), Dubai Gold and Commodities Exchange (DGCX), Multi Commodity Exchange (MCX), and lastly, the Tokyo Commodity Exchange (TOCOM).
Silver is considered to be one of the many flexible metals on the planet with uses that extend from being an industrial metal to a hard asset. The metal is known to play double duty within the commodity market. Trading and predicting the price of this metal consists of a delicate balance of what is needed by consumers and what is needed by the market.