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?


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.


Platinum exhibits particular volatility, and intelligent traders can exploit this.

What affects Platinum prices?

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The global demand for platinum is largely driven by the jewelry industry. Because of its high demand and limited supply, platinum costs more than gold.


Any decline in the automotive industry directly affects demand because platinum is essential for the production of catalytic converters.

Investment demand

Although a weak US dollar or a high gold price may influence investors to choose platinum, this is not a significant factor in platinum's price.



The majority of the world's platinum is mined in South Africa and Russia, making it susceptible to unrest in these nations' politics and economies.

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.