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Market guide

Silver (XAGUSD): gold's higher-beta relative

Silver follows gold's direction but with larger percentage swings and thinner liquidity, a combination that punishes standard sizing.

Contract mechanics

A silver lot commonly represents 5,000 ounces. Small moves in the quote translate into large account moves, so lot sizes here are typically the smallest of any instrument a trader holds.

Why silver is harder than gold

Silver has a large industrial demand component layered on top of precious-metal demand, and a much smaller market. The result is sharper spikes, wider spreads and more frequent stop runs.

Practical approach

Trade silver with a stop distance derived from its own average range, not from a habit formed on currency pairs. Check the spread immediately before entry — it varies more through the day than most instruments.