There are several factors that affect price fluctuation and that can cause volatility in the precious metals market. One of the most important factors is global financial institutions, whose investments are speculative in nature and can cause upward or downward price movements. Another factor that influences the market is the end-user trends, mainly triggered by jewellery buyers. In general an increase in demand for jewellery causes precious metal market prices to rise. Economic conditions also have an impact on market prices. Changes in demand for some other financial assets apart from precious metals also contribute to price fluctuations.
Precious metals can be traded in both directions If the market is expected to move upwards trades can be entered by purchasing a metal via a CFD (going long) and exit the trade by selling the metal. If there is anticipation of a downward movement, trades can be entered by selling a metal via a CFD (going short) and exit the trade by buying the metal. The ability to trade in both directions allows investors to gain profits (but also to sustain losses) regardless of upward or downward market movements.
|Metal||One Pip Value||Minimum Price Movement||Minimum size||Minimum spread||Retail margin required||Professional margin required|
*Represents the lowest possible spread
Professional clients are charged commissions starting from 7$/€/£ per 1 lot and spreads from 0.0pips
EC Markets is the trading name of EC Markets Group Ltd is authorised and regulated by the Financial Conduct Authority (FCA), FRN: 571881. EC Markets Group Ltd is incorporated in England and Wales (no. 07601714). The trading address is 3rd Floor, 30 City Road , EC1Y 2AY, London, United Kingdom.
The services of EC Markets and the information on this site are not directed at citizens/residents of the United States, Canada, Belgium and Singapore and are not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Apple, iPad, and iPhone are trademarks of Apple Inc. registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Android is a trademark of Google Inc.
Feel free to contact us, and we will be more than happy to answer all of your questions.