Silver Pip Value — Far Bigger Than Gold
Silver (XAG/USD) carries a considerably larger pip value than gold because the contract size is 5,000 troy ounces per standard lot (compared to just 100 oz for gold). With a pip size of $0.01, the pip value works out to $50.00 per standard lot — that is 50 times larger than XAU/USD.
| Lot Size | Oz | Pip value (USD) | Pip value (INR @ 84.00) | Daily range context |
|---|---|---|---|---|
| 0.01 | 50 | $0.50 | ₹42.00 | ~₹1,680–₹4,200/day |
| 0.10 | 500 | $5.00 | ₹420.00 | ~₹16,800–₹42,000/day |
| 1.00 | 5,000 | $50.00 | ₹4,200.00 | ~₹1,68,000–₹4,20,000/day |
Warning: Many new traders significantly underestimate silver's pip value — it is 50 times larger than XAU/USD on a standard lot. Always size your positions accordingly. When starting out with silver, use micro lots (0.01) to keep risk manageable.
| 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 ₹2,50,000 (₹2,500), with a 100-pip stop:
XAU/USD: ₹2,500 ÷ (100 pips × ₹84.00/pip/standard-lot) = 0.030 lots
XAG/USD: ₹2,500 ÷ (100 pips × ₹4,200.00/pip/standard-lot) = 0.00060 lots (0.06 micro-lots)
Silver demands a far smaller position size than gold to maintain the same rupee risk exposure.
| 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 |
Silver Trading and Indian Markets
India is one of the world's largest consumers of silver, driven by strong demand from jewellery, religious ceremonies, and a fast-growing industrial sector — particularly electronics and solar energy manufacturing. Indian traders who follow precious metals often look at silver as a higher-volatility complement to gold. While spot silver (XAG/USD) as a CFD is typically accessed through offshore platforms, domestic traders can also participate via silver futures on exchanges like MCX. The gold-silver ratio is closely watched by Indian commodity traders to spot relative value opportunities between the two metals.
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 →