Essential Knowledge Points for Precious Metals Trading

  • 2025-07-18

 

Key knowledge points related to precious metals trading, paying attention to current issues in trading, understanding the key aspects of precious metals trading, and staying informed about the latest challenges in the market.

1. Trading prices are prioritized based on price and time. Orders are automatically executed when buy orders exceed or match sell orders. The minimum margin requirement for precious metals futures is 10% of the contract value, allowing investors to trade with flexibility.

2. Order quotes are limited by price restrictions. However, investors can profit by buying low and selling high or by selling high and buying low.

3. Understanding the fundamentals of precious metals futures is crucial. Before investing, beginners should study basic knowledge through professional financial websites or precious metals company websites, particularly regarding market structure, price formation, and influencing factors. This helps build a knowledge framework, track fundamental factors, and make informed trading decisions.

4. If an investor’s account has insufficient margin, forced liquidation will occur. This may involve closing all or part of the positions. Therefore, maintaining sufficient funds is essential. Position sizing should follow the account’s budget—unless a favorable trend is confirmed (up to 50% exposure), each trade should not exceed 30% of total capital. This rule helps effectively manage risk.

5. Cultivate a disciplined investment mindset—learn to control emotions and stay calm in wins and losses. The less emotional you are during trading, the clearer your market judgment and decision-making will be. Regularly self-reflect to overcome negative psychological influences like greed, impatience, indecisiveness, and overconfidence.

To succeed in precious metals trading, focus on the current market issues and key knowledge points, ensuring awareness of relevant challenges.

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