What is silver margin trading? What are the functions of silver margin trading? Silver margin trading means that in the silver trading business, market participants do not need to fully allocate the silver traded, but only need to pay a certain percentage of the total silver trading amount as the trading margin when silver is traded in kind.

Silver margin trading is often a manifestation of the gradual maturity and development of the silver market. Generally, silver margin trading includes

1. Price discovery

It is found that price is a function of silver futures trading, and silver futures price is the future performance of silver spot price.

arbitrage

Both futures margin trading and spot margin trading can achieve arbitrage. Here, it may be necessary to explain the concept of silver arbitrage. In order to avoid the market risk caused by the uncertainty of silver price in the future, it is necessary for banks to adopt the market operation mode of locking in risks and locking in benefits with present value.

3. Profit from speculation

Margin trading has a high leverage effect, so it has become a tool for investors to speculate.