Metal trading

With AG Markets start trading and operating precious metals like: gold, silver, platinum, palladium, and copper through MT4.

Introduction

Metals are a class of commodity assets that are extracted from the ground. Metals will therefore include gold, silver, palladium, platinum and copper. These assets are listed for trading on the AG Markets MT4 platform.

The commodity contracts on metal assets are traded on a CFD basis; the physical metal assets are not held by the trader, and are not exchanged between buyer and seller or between dealer and trader. What is traded is the contracts which are based on the price changes for each metal as the asset value goes up or down on a daily basis.

Instrument name Minimum trade size Margin requirement per min trade size Typical AGM spread Minimum stop distance (Points)
USD GBP EUR
XAU/USD 1 4 3 3 0.5 0.1
XAG/USD 50 7.5 5 5 0.05 0.1
XPD/USD 1 12.5 10 10 4 10
XTP/USD 1 4 3 3 7 10
Copper 1 50 30 35 0.002 0.002

Trade forex, precious metals, energies and equity indices from 1 account

Structure of metal trading

Commodities are primarily traded using the open outcry system on the floor of the Chicago Mercantile exchange, operated by the CME Group. They are also traded on the electronic exchanges of the Chicago Board of Trade (eCBOT). The trading times for each of these trading sequences are different, so that on any given trading day, two trading times for metal trading are seen. It is important for traders to understand this as it will serve as a guide on how to trade metals during the period of maximum volatility.

Unlike many other platforms where metal trade contracts have expiration dates, trades on metals performed on AG Markets do not have an expiration and can be closed by the user at any time.

Contract specifications for metals on AG Markets

Contract specifications exist for each metal asset traded on AG Markets. AG Markets offers the following metal assets for trading:

GOLD

SILVER

PLATINUM

COPPER

The contract specifications for metal assets on AG Markets have to do with:

  • A The minimum trade size in terms of lots.
  • BThe margin requirement for a minimum lot trade size.
  • CThe spread on each energy asset.
  • DThe minimum stop amount, which is the minimum number of pips that the trader can set as a stop loss. This will also affect the minimum number of pips that the trader can set as a trailing stop when chasing advancing prices to lock in profit.

The contract specifications for the other metal assets are listed on the metal trading webpage.

The contract specifications for each metal asset will determine a number of things for the trader. One of these is the account capital. Trading of metal assets generally requires higher margin than currency trading. So, a trader will need to have reasonable account capital to maintain a position in the metal trading market. Margin is generally maintained at 25:1, which means that the trader will need about $4,000 to maintain a 100-ounce position on gold.

All metals are traded via the MT4 platform.
Precious metals trading hours

Gold (XAU/USD) and silver (XAG/USD) trading hours:

Gold and silver trading will commence on Sunday at 23.00 GMT. Furthermore, there will be a daily break in gold and silver trading at 22.00 GMT and trading in gold and silver will resume at 23.00 GMT. During the break, you will not be able to place market orders, and limit/stops cannot be placed and/or amended.

Gold and silver rollover

Gold and silver rollover explained:

Spot gold or silver rollover will be performed in the same manner as our forex instrument.

Copper expiration

Copper expiration:

Copper is the only metal to have a once every other month expiration. All other metal trades will remain open until such time the client closes the position or there is insufficient margin to support the open position. For copper, the open position will be closed by AG Markets.

What do you need to start trading metals on AG Markets?

AG Markets offers traders the opportunity to trade metal assets on their MT4 platform. In order to trade metals on this platform, traders will need the following:

  • A An account with AG Markets. This account should be funded with at least $5,000, so as to cater for the increased margin requirements.
  • BAccess to advanced charting software for technical analysis.
  • CAccess to market news which has specific significance to the metal assets being traded on AG Markets.
  • DAn understanding of how to use the MT4 platform offered by AG Markets.

Metals are particularly sensitive to economic fundamentals. For instance, gold is sensitive to the state of the global markets and is traded on the basis of risk-on/risk-off sentiment. Silver is an industrial raw material used in several industries. Its value is a factor of demand and supply in the relevant industries.

Copper is primarily exported from Australia to China where it is one of the raw materials feeding China’s buzzing industries. News about manufacturing, growth (GDP) and industrial sentiment is a major factor affecting this metal. Trading metals will test the trader’s knowledge of world economics. Therefore, it is only proper that traders who want to trade metals pay attention to the educational materials available on AG Markets.


If you'd like to read the complete Contract Specifications for Standard Accounts, please click here.

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