There seems to be a vast amount of introductory knowledge for precious metals investment, yet the core content to master first is quite focused. Concepts such as gold, silver, quote units, lot size, spread, margin and K-lines are interrelated. Learning them in sequence will keep things organised. As part of the official website knowledge library, Lucky Gold has compiled these concepts into a clear "basic glossary" for new investors to learn item by item.
1. Differences Between Gold and Silver
Both gold and silver are precious metals. Gold carries stronger financial attributes and is frequently affected by the US dollar, interest rates and market sentiment. Besides its precious metal properties, silver has extensive industrial applications. Therefore, although their price trends are sometimes correlated, they never move identically.
2. What Is a Quote Unit
The common quote unit for international gold and silver is US dollars per troy ounce. Local markets may also adopt pricing such as RMB per gram or HKD per tael. Numerical values under different units cannot be directly compared. Confirming the quote unit before checking prices is the most fundamental step.
3. What Is Lot Size
A "lot" is the standard quantity unit widely used in precious metals trading. The specific quantity represented by one standard lot varies across different products. Larger lot sizes generally mean price movements will exert a more noticeable impact on your account.
4. What Are the Ask Price and Bid Price
A quote page usually displays two prices at the same time. They correspond to market prices for different trade directions respectively. There is a price gap between these two figures. Once you understand this, learning about spreads becomes straightforward.
5. What Is the Spread
The spread refers to the price difference between the ask price and bid price. It is a common component of trading costs for precious metals. When viewing market quotes, new traders should not only focus on a single price figure, but also pay attention to the relationship between the two quotes.
6. What Is Margin
Some precious metals products adopt the margin trading mechanism. Margin can be understood as a portion of account funds withheld when opening a position. It is closely linked to trading lot size, account capital and position management.
7. What Is Two-Way Trading
For certain precious metals products, traders may select different trade directions based on their market judgments. This mechanism is known as two-way trading. It brings greater flexibility to market participation.
8. What Are Trading Hours
Gold and silver are traded on global markets. Major markets in Asia, Europe and the Americas become active one after another. As a result, the overall trading hours of the international precious metals market are generally long. Market liquidity and activity levels may differ across trading sessions.
9. How to Read K-Lines
A K-line consists of the opening price, closing price, high price and low price. Successive K-line candlesticks together show price movements over different timeframes. New traders may start with daily and hourly charts before moving on to shorter timeframes.
10. What Are Support and Resistance
If prices repeatedly fall to a certain zone and then rebound upwards, this level may form support. If prices keep rising to a zone and then stall, this area may form resistance. They are core basic price concepts in technical analysis.
Recommended Learning Sequence for Precious Metals Investment Basics
Follow this order: Gold and silver → Quote units → Bid & ask prices → Lot size → Spread → Margin → Trading hours → K-lines → Support and resistance → Market analysis. This sequence connects all the related concepts logically.
You do not need to master all introductory knowledge of precious metals investment at once. Master the basic terminology first, then gradually move to market analysis and trading strategies. This approach helps you build a complete knowledge framework more easily.