Silver Pip Value — Much Larger Than Gold
Silver (XAG/USD) has a significantly larger pip value than gold because the contract is 5,000 troy ounces per standard lot (vs 100 oz for gold). With pip size of $0.01, the pip value is $50.00 per standard lot — 50× larger than XAU/USD.
| Lot Size | Oz | Pip value (USD) | Pip value (ZAR @ 18.00) | Daily range context |
|---|---|---|---|---|
| 0.01 | 50 | $0.50 | R9.00 | ~R360–R900/day |
| 0.10 | 500 | $5.00 | R90.00 | ~R3,600–R9,000/day |
| 1.00 | 5,000 | $50.00 | R900.00 | ~R36,000–R90,000/day |
Warning: Many new traders underestimate silver's pip value — it is 50× larger than XAU/USD on a standard lot. Size positions accordingly. Use micro lots (0.01) when starting with silver.
| 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.
Gold vs Silver: Position Sizing Comparison
At 1% risk on R50,000 (R500), with a 100-pip stop:
XAU/USD: R500 ÷ (100 pips × R18.00/pip/standard-lot) = 0.028 lots
XAG/USD: R500 ÷ (100 pips × R900.00/pip/standard-lot) = 0.00056 lots (0.06 micro-lots)
Silver requires a much smaller position size than gold for the same risk amount.
| 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 |
South Africa and Silver
South Africa produces relatively little silver compared to gold, but silver prices are correlated with gold (gold-silver ratio). SA traders often use silver as a higher-volatility alternative to gold for short-term plays. The main driver is industrial demand (solar panels, electronics) alongside precious metal sentiment.
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.
Values are educational only. Verify pip sizes and contract specifications with your broker before trading. See full pip value table →
