XAGUSD definition

XAGUSD is the market symbol for silver priced in US dollars, where XAG represents one troy ounce of silver and USD is the US dollar. The quote shows how many US dollars buy one troy ounce of silver.

You trade XAGUSD as a Silver CFD, a position on the price movement without owning the physical metal. Go long if you expect silver to rise and short if you expect it to fall, with the pair quoted as the US dollar value of a single troy ounce.

Silver prices respond to both industrial and monetary demand, since the metal is consumed in electronics, solar panels, and other manufacturing as well as held as an investment. US dollar strength, interest rates, and the gold/silver ratio also shape the price, and silver tends to swing more sharply than gold.

XAGUSD Example

Say XAGUSD is trading at 30.00 and you expect silver to rise on stronger industrial demand. You open a long Silver CFD position on 100 troy ounces using 20:1 leverage. Silver climbs to 31.50 and you close.

Your profit is: (31.50 - 30.00) √ó 100 = USD 150

If silver had instead slipped to 29.00, the position would lose USD 100. These prices are illustrative.