What is spot metal trading, and why traders love it
The 'spot' price of a metal like gold (XAU) or silver (XAG) is the cash price of that metal at that time.
Metal trading means exchanging gold or silver spot prices for a major currency. An example would be XAGEUR (Silver against the Euro) or XAUGBP (Gold against the British Pound).
Spot metal traders can use both long- and short-term price charts to monitor gold or silver's price movements, and then place a trade depending on how they anticipate the price moves. Traders choose to hold either a long- or short-term position according to their strategy.
One benefit of trading spot metals is that gold and silver unlike currencies are usually more stable during volatile times. These assets are typically seen as a 'hedge' against inflation, meaning that whatever the current state of the financial market, there are still opportunities to potentially profit from them.
Trading is risky. Your capital is at risk.