Trade spot gold versus spot silver in one position: XAUXAG

Product News TeamProduct News Team , Saxo Bank
Filed in Saxo Bank Product News
Denmark, 26 September 2012 at 08:10 GMT+0
Recommended Recommend Unrecommend Recommend

Silver and Gold

On October 1 Saxo Bank will launch a new spot contract XAUXAG. The new cross will enable you to trade the spread between spot Gold and spot Silver without having to open two individual positions.

If you expect Gold to outperform Silver you buy XAUXAG and similarily if you expect Silver to outperform Gold you sell XAUXAG.

Correlation between spot Gold and spot SilverXAU vs XAG
Considering that both Gold and Silver are precious metals there is a high degree of correlation between the two. However, if you look closely at the chart on the right showing Gold and Silver price development over seven days, significant trading opportunities present themselves.

 
Lower spreads on XAU and XAG means tight spreads on XAUXAG
Saxo Bank recently lowered the spread on XAUUSD (Gold) from 60 pips to 45 pips and with the lowering of XAGUSD (Silver) from 550 pips to 400 pips on October 1, the combined XAUXAG spread will be just 10 pips (equal to 0.10). The dedicated liquidity and target spreads available are detailed in the table below:
Saxo Bank Retail FX Spot Spreads
  Trades up to Spread
XAUXAG 1,000 oz. 10 pips
  2,000 oz. 12 pips
  >2,000 oz. Request for Quote

 

XAUXAG price development

Many trading opportunities in XAUXAG
Due to the correlation between the two precious metals the volatility in XAUXAG is not as high when compared to trading Gold or Silver against USD, but when looking at the actual price development in XAUXAG it shows many trading opportunities – often with sizable movements every trading day and even larger movements on a weekly or monthly basis.

The new cross will be available on all Saxo Bank trading platforms from October 1 2012.

XAU vs. XAG ratio last 2 years

Comments

Related articles

Topics

This post appears under the following topics...

  1. Commodities
  2. gold
  3. silver
  4. precious metals
  5. Trading basics
  6. Learn from TradingFloor.com Analysts

Trending articles

Trending Topics

Disclaimer

Saxo Bank provides an execution-only service. The material on this website does not contain (and should not be construed as containing) investment advice or an investment recommendation, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Saxo Bank accepts no responsibility for any use that may be made of these comments and for any consequences that result.

Please read our full disclaimers:
Sponsored by Saxo BankCookiesPrivacyRSSContact us

Disclaimer

Saxo Bank provides an execution-only service. The material on this website does not contain (and should not be construed as containing) investment advice or an investment recommendation, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Saxo Bank accepts no responsibility for any use that may be made of these comments and for any consequences that result.

Please read our full disclaimers:
Sponsored by Saxo BankCookiesPrivacyRSSContact us
Feedback
Dismiss

Oops! There was a problem communicating with the TradingFloor.com servers Connection Error! {time} {code} {type} {message} .

Oops! There was a problem communicating with the OpenAPI servers.
Oops! There was a problem communicating with the Financial Calender servers.