When talking about Over The Counter (OTC) Spot Precious Metals these are different to futures contracts. We are talking about the spot price of Gold and Silver when trading. The trade is performed as it is done with foreign currencies, by the OTC method (over the counter) which means the trading is done directly between the two involved parties and not via an exchange market).
At ICM Capital, Gold is quoted in $/¢ and Euro per troy ounce and has a contract size of 100 ounces per standard lot.
The minimum price movement is USD 0.01, also referred to as a point or tick. Therefore the smallest tick value is one dollar.
E.g. $1150.21 - $1150.20 = $0.01 ($0.01 * 100 = $1 per standard lot).
Of all the precious metals, Gold is the most popular as an investment. Investors who trade gold online generally buy gold as a hedge or safe haven against any economic, political, social or currency-based crises. Investors also buy gold and take part in gold trading during times of a bull market in an attempt to gain financially.
Gold has inherently been linked to foreign exchange for many years, due mainly to the Gold Standard and Bretton Woods agreement of 1944 which linked all of the major currencies together up until 1971. Although there is no fixed link between gold and currencies in the modern day marketplace there are still strong parallels.
When talking about silver trading it is quoted in $/¢ or Euro per troy ounce with a standard contract size of 5000 ounces per one standard lot. The minimum price movement is 0.01 dollars, also referred to as a point or tick. Therefore the smallest tick value is fifty dollars.
E.g. $18.00 - $18.01 = $0.01 ($0.01 * 5000 = $50).
Silver, like its precious counterpart gold, is readily used as an investment tool and economic indicator with investors who trade silver online. Unlike gold, when trading silver it is traded as an industrial commodity and as a result of this can lose its strong positive correlation providing the market place with added trading potential.
|Metals/US$||ICM Capital Trading Hours||Contract size||Margin Requirement||ICM Direct Typical Spread*||ICM Direct Limits/stops pending orders can be placed from market price||ICM Zero||ICM Zero Limits/stops pending orders can be placed from market price|
|GOLD Spot||23:01 - 22:00 (Sun - Fri) /22:00 - 23:00 (Daily break)||100 Troy oz||0.5%||$0.31||No Minimum||$0.16||No Minimum|
|SILVER Spot||23:01 - 22:00 (Sun - Fri) /22:00 - 23:00 (Daily break)||5,000 Troy oz||1%||$0.04||No Minimum||$0.015||No Minimum|
i. All times are based on ICM Capital Server time
ii. Min and Max Lots per trade: 0.01 lots - 500 lots
iii. ICM Direct account requires no minimum limits/stops required to enter the market
iv. Subject to change without prior notice
ICM Capital offers Islamic accounts to clients following the Muslim faith. Forex Islamic accounts are also known as swap-free accounts as they imply no swap or rollover interest on overnight positions, which is against Islamic faith.
ICM Capital reserves the right to discontinue an Islamic/SWAP-free account without warning. ICM Capital will invoke this right in case of suspicion of abuse, in which case ICM Capital may, at its sole discretion, decide to close all open positions in the account and deduct or add swaps for all transactions currently and/or previously made in the account and decline from accepting any further requests from the Client to be exempted from SWAP.
The ICM Capital research team provide market updates on the OTC Precious Metals markets in a daily commentary which can be emailed straight to your inbox. Just fill in the details below to receive our FREE daily report.
Subscribe now to receive our
FREE DAILY MARKET REPORT
Receive major news updates including: Key Support & Resistance Levels, Market Summaries and Charts