The Easy and Profitable Way to Trade Silver
The capabilities of modern computers and other Internet connected devices compared to those of less than five years ago are absolutely astounding. High speed Internet connections are available to almost everyone.
The combination of this technology and online trading platforms seems like practically as ideal an application of the two as can be imagined.
Using the Internet and trading platforms to trade silver online is a prime example of an easy and profitable way of taking advantage of the benefits modern technology and software have made available to the average individual.
In days gone by, someone who wanted to trade silver would place a telephone call to a broker. The broker would then write an order ticket and send it to the trading floor of an exchange to be executed. The problem with this system is that a volatile instrument such as silver could change price dramatically in the minutes it took for the process of placing a trade to be completed. This resulted in slippage between the price the trader desired and the price at which the trader’s order was executed. This slippage seldom was of benefit to the trader. True, the trader could have instructed the broker ahead of time to place a trade sometime during the trading session if silver reached a certain price, but even then, slippage was commonplace.
Modern online trading platforms have essentially eliminated the issue of slippage. Orders are executed essentially instantaneously, the time lag being a question of nanoseconds rather than minutes.
Silver can be traded using forex platforms in exactly the same way currency traders speculate on the change in the exchange rate between two currencies. A silver trader that believes that silver will gain value compared to a certain currency will purchase silver, selling an equivalent value of the currency at the same time. A trader who believes that silver will decline relative to a currency will do the opposite.
The speed of the trading platforms means that a silver trader can take advantage of small changes in the value of silver to make profits in a very short period of time, in some cases less than a minute. The further benefit to this is that traders have no long term exposure to the silver market since they can immediately exit or enter trades at any time.
Modern online platforms for forex used to trade silver are extremely intuitive and easy to use. There are even versions adapted for tablets and smart phones that supply the benefit of trading without being tied to a computer workstation.