Maybe many investors have heard of spot silver, but they don't know what it invests in, how it is bought and sold in the process, and they don't know what risks they need to bear if they participate in it, and what the final return will be. For the above-mentioned issues, this paper will briefly introduce them to you.
Although spot silver is called "spot", it is not a real silver transaction, but an electronic silver margin transaction. The whole process of buying and selling is mainly completed through electronic equipment such as computers, and usually does not Involves the delivery of physical silver.
Spot silver tracks the spot price of silver in the London market. The purpose of investors participating in the transaction is mainly to capture the fluctuations in the market trend and earn the price difference caused by the rise and fall of the market. Moreover, due to the existence of leverage in the process, the income will be certain. degree of amplification.
With the blessing of dozens of times of leverage, investors' investment income is expected to be significantly improved, but don't forget that leverage has two sides, and it may also magnify trading losses. Therefore, spot silver investors must learn how to control risks. The main way is to control the funds they invest in each transaction and solve the loss-making positions (stop loss) in a timely manner.