InvestorQ : Can I BUY SILVER SEP FUT @ 41200 WITH SL OF 40960 FOR TARGET OF 42000
Satyanarayan Singh made post

Can I BUY SILVER SEP FUT @ 41200 WITH SL OF 40960 FOR TARGET OF 42000

Answer
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Sam Eswaran answered.
1 year ago


That would depend on your holding period. Silver has been on an uptrend and if you look at the last 1-month silver futures chart on MCX, it is up by nearly 12% during this period. The uptrend is on and so you can surely buy Silver futures with a strict stop loss. However, you should keep a shorter profit target and ideally look at a risk/reward of around 3:1 rather than 5:1. That would be a more feasible trade.

Gold and silver are doing very well under the precious metal category because there is a demand for safe-haven metals currently as the global situation is quite uncertain.  During such times, normally, the demand for precious metals like gold and silver go up sharply. You can play for that but just use your risk-reward ratio in a better way.