Pip Value & Contract Specifications
Silver (XAG/USD) has a contract size of 5,000 troy ounces per standard lot — fifty times larger than gold's 100 oz. One pip = $0.01 (one cent of silver price movement). With 5,000 oz per lot, the pip value is $50.00 per standard lot. This is by far the largest per-pip dollar value of any mainstream retail trading instrument, making position sizing critically important.
| Lot Size | Contract (oz) | Pip value (USD) | Pip value (ZAR @ 18.50) | 20-pip stop loss |
|---|---|---|---|---|
| 0.01 (micro) | 50 | $0.50 | R9.25 | ~R185 |
| 0.10 (mini) | 500 | $5.00 | R92.50 | ~R1,850 |
| 0.50 | 2,500 | $25.00 | R462.50 | ~R9,250 |
| 1.00 (standard) | 5,000 | $50.00 | R925.00 | ~R18,500 |
ZAR values illustrative at USD/ZAR 18.50. Even a 0.01 micro-lot = $0.50/pip. Use the calculator above for live rates.
| Instrument class | Spot silver |
|---|---|
| One pip | 0.01 |
| Standard lot | 5,000 troy ounces |
| Value of one pip per lot | $50.00 |
| Typical spread | 250 pips — · FxPro verified |
| Notional value of one lot | — |
| Margin on one lot at 1:30 / 1:100 / 1:500 | — |
The last two rows move with the market and are filled in from the live rate; everything above them is fixed by the contract. Leverage available to you depends on your regulator and account type — check it in the platform before you size a position.
Position Sizing Example
Suppose you have a R50,000 account and risk 1% per trade (R500). You set a 20-pip stop loss on XAG/USD (silver can move 20 pips in minutes, so this is already aggressive).
At USD/ZAR 18.50, pip value per lot = R925. The formula:
Lots = Risk ÷ (Stop pips × Pip value in ZAR)
Lots = R500 ÷ (20 × R925) = R500 ÷ R18,500 ≈ 0.027 lots
Round down to 0.02 lots (2 micro-lots). Note: 0.02 lots of silver still moves R18.50 per pip. A sudden 50-pip spike (very common in silver) = R925 loss — nearly 2% of the account. Silver demands the most conservative sizing of any common instrument.
| Currency | Central bank | Policy rate | What moves it |
|---|---|---|---|
| XAG | No issuer | Priced in USD | real US yields · industrial demand · fund flows |
| USD | Federal Reserve (Fed) | Federal funds target range | FOMC · CPI · jobs data |
About XAG/USD — Key Drivers & Trading Hours
Silver is often described as "gold on steroids" — it follows gold's direction but with amplified moves. Silver has significant industrial demand (solar panels, electronics, EVs) on top of its safe-haven characteristics, making it sensitive to both risk appetite and manufacturing data. The gold/silver ratio (typically 70–90) is a key metric traders monitor to assess relative value.
The key drivers of XAG/USD are: US Dollar strength (inverse), gold price direction, industrial production data (ISM, PMI), solar and EV sector growth narratives, and mine supply from major producers (Mexico, Peru, China). Silver can move 3–5% in a single session on thin liquidity, especially during Asian hours.
Best trading hours in SAST: London–New York overlap 14:00–18:00 SAST, same as gold. Liquidity is thinner than gold throughout, so spreads are typically 2–5x wider. Avoid overnight positions unless you have wide stops — silver gaps are frequent and often exceed 30–50 pips.
Warning: At $50/pip per standard lot, even 0.01 lots = $0.50/pip. A 100-pip daily move (common for silver) on just 0.01 lots = $50 (R925). Never trade silver without a position-size calculator. This is the single instrument where over-sizing has blown the most retail accounts.
Spreads are tightest when two sessions are open at once and widest when one desk has gone home and the next has not arrived. The shaded band is the overlap.
Pip values sourced from ECB reference data (Frankfurter API). All values are indicative and for educational purposes — not live trading quotes. See full pip value table →
