Quote:
Originally Posted by AAnthony
Wow, silver took a shit, i'll be buying some tomorrow
edit. After further research I realized I'm interested in trading Silver futures as opposed to buying physical silver. I want to be able to follow the markets and trade instantaneously from my phone or a computer. Physical silver costs more too; Silver futures closed today at $22.90 Maples coins are $26.99 /oz, and 100 oz bars are roughly $25 oz. Plus there's a huge variance between the buy and sell price at VBE, Border Gold, First Majestic and I plan to buy and sell often. I have experience in trading stocks, but that was on a TD Warehouse account and they took far too high of a commission. Told me they would lower it if it put $100,000 in the account, fuck that! Setting one up now with Questrade
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you better learn how the margins work for futures dude.
yes it is "cheaper" but its leveraged. you cant just buy and hold.
if it goes lower you're gonna get margin calls and shit. you will lose more than ever put in if u just buy and hold. unless u don't leverage it and put in like full amount calculated so you can hold the waves. don't forget about delivery months too. the contracts expire.
for example
silver margin is around 12500 dollars per contract.
you buy 1 silver contract at... say 19.50. say you buy one many months out so u can hold.
the maintenance margin is 6000 dollars. so of that 12.5k, your money cannot drop below 6k or else you have to "refill" it to 12.5k.
if silver drops to 18.50, you lost 5grand. every dollar silver drops you lose 5 grand.
how many dollars can you afford? if silver drops $1.20, you'll be on margin call and you'll have to refill your account 6grand.
i say silver is gonna go down another 8-10 dollars. thats a 45,000 dollar loss if you entered today. can you handle that?
or like i said, u can "unleverage" it and calculate... put in like 60grand or 70grand or whatever it is for 1 contract and u can ride it up and down and with hold all the swings.