Platinum Trading
One common method of portfolio diversification is through trading in commodities and precious metals like platinum. The guide you need to trade the platinum market is right here.
Why Trade Platinum?
Diversification
Experienced traders diversify their portfolios to reduce risk. Trading in precious metals, such as platinum, is a smart way to ensure that your portfolio is exposed to various risk factors.
Hedging against inflation
Commodities’ values are not affected by the same factors as currencies, so they can often hold value while currency values are falling.
Volatility
Platinum exhibits particular volatility, and intelligent traders can exploit this.
What affects Platinum prices?
Trading Tips in Platinum Market
Trading Platinum in Practice
Your analysis leads you to conclude the price of platinum will appreciate.
You buy 1 contract platinum at the price of 987.06. One lot equals $100 for every $1 movement in the price of Platinum.
Winning Scenario
Losing Scenario
Demand for platinum spikes and a couple of days later the price is $993.06. You decide to sell and lock your winnings. Your profit is calculated as follows: (993.06 – 987.06) x $100 = $600.
The price of platinum does not move your way and after some time has passed it is at $982.06 . You decide to close the position and cut your losses. The loss in this case is: (987.06 – 982.06) x $100 = $500.