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.
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.
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.
Values are educational only. Verify pip sizes and contract specifications with your broker before trading. See full pip value table →