$XAG On Friday, a friend messaged me that their account was burned (quite a lot) when trading Silver (code Xag). Upon inquiring, it seems there is still confusion about the lot size between gold and silver. Just a reminder for everyone:
- Lot is the standard unit for each market, and each product has its own contract size. Simply think: 1 lot = the standard contract size of that product. When you trade on a CFD Broker (e.g., mt4, mt5), the lot will remain consistent with the market standard (see the standard in the image below)
- Gold has a standard of 1 lot ~100 oz, silver 1 lot ~5000 oz (50 times more, okay everyone). For example, entering an order of 0.01 lot on gold will differ from 0.01 lot on silver👉 the amount lost when the price moves by 1 USD on silver will be 50 times that of gold, even with the same 0.01 lot. So, please calculate the volume for an incorrect order that could lead to an account burn 😑
- Please refer to the description image below for a better understanding. If you are not familiar, do not trade silver as it is easy to burn, okay? 🍀🍀🍀
- Lot is the standard unit for each market, and each product has its own contract size. Simply think: 1 lot = the standard contract size of that product. When you trade on a CFD Broker (e.g., mt4, mt5), the lot will remain consistent with the market standard (see the standard in the image below)
- Gold has a standard of 1 lot ~100 oz, silver 1 lot ~5000 oz (50 times more, okay everyone). For example, entering an order of 0.01 lot on gold will differ from 0.01 lot on silver👉 the amount lost when the price moves by 1 USD on silver will be 50 times that of gold, even with the same 0.01 lot. So, please calculate the volume for an incorrect order that could lead to an account burn 😑
- Please refer to the description image below for a better understanding. If you are not familiar, do not trade silver as it is easy to burn, okay? 🍀🍀🍀