When trading London Silver on Lucky Gold, the contract size for 1 lot is 5,000 troy ounces. 0.1 lot equals 500 troy ounces, and 0.01 lot equals 50 troy ounces. These figures refer to the size of the trading contract, which is used to calculate profit and loss from price fluctuations, and also affects margin and trading costs.
Many new traders see silver quoted at only tens of US dollars, then notice "5,000 troy ounces per lot". Their first thought is: do I need to buy the full 5,000 troy ounces of silver when opening one lot?
In actual trading, you should distinguish between "contract size" and physical quantity.
What does 5,000 troy ounces per lot mean
London Silver uses standardised contract sizes. Each lot of London Silver on Lucky Gold represents 5,000 troy ounces. This figure is mainly used to calculate the market price exposure of an order.
Lucky Gold currently supports a minimum trade size of 0.01 lot, so traders can start with smaller contract sizes.
Why it is important to calculate 0.01 lot clearly
The number 0.01 may look small, but it corresponds to 50 troy ounces of silver. If the silver price moves by $0.10 per troy ounce, the floating amount for 50 troy ounces is: 0.10 × 50 = $5
Therefore, you should not judge risk merely by looking at the number "0.01". Converting it to the actual contract quantity helps you intuitively assess your position.
Do I need to pay the full value for 5,000 troy ounces when trading one lot?
London Silver is traded on margin.
According to the current trading rules of Lucky Gold, the margin requirement for one lot of London Silver is $650, with a minimum of 0.01 lot. Based on the current standard, the margin for 0.01 lot is approximately $6.5.
Margin occupied should be separated from the total contract value. For example, if silver is priced at $50 per troy ounce, the notional contract value for 1 lot (5,000 troy ounces) is: 50 × 5000 = $250,000
Position opening follows the prevailing margin rules. This also explains why margin trading is highly sensitive to price movements.
What changes most when the lot size increases
The most direct change is that the same price movement will result in larger capital swings. 0.01 lot corresponds to 50 troy ounces. 0.1 lot corresponds to 500 troy ounces. 1 lot corresponds to 5,000 troy ounces.
When the lot size increases tenfold, floating profit and loss for the same silver price movement will also roughly increase tenfold.
Therefore, when selecting a trading lot size, it is recommended to first ask yourself one question: If silver suddenly moves $0.1, how much will my account balance change?
This figure is more intuitive than looking at the minimum margin alone.
Why you cannot apply the same lot-size mindset to silver and gold
One lot of London Gold on Lucky Gold is 100 troy ounces, while one lot of London Silver is 5,000 troy ounces.
Although both are called "1 lot", the underlying contract sizes differ greatly. Trading habits for gold cannot be directly applied to silver.
For instance, some traders who usually trade 0.1 lot of gold may enter 0.1 lot for silver without recalculating the contract quantity and price fluctuation value. This habit can easily result in a position size different from what they expect.
It takes little time to review the contract specifications each time you switch instruments.
A simple calculation formula to remember
Silver contract quantity can be calculated directly as: 5,000 troy ounces × trading lot size 0.01 lot = 50 troy ounces. 0.1 lot = 500 troy ounces. 1 lot = 5,000 troy ounces.
Multiply this quantity by the change in silver price, and you can quickly estimate the impact of market moves on your order.
Risk Warning: London Silver is traded on margin. A small margin requirement may correspond to a large notional contract size. Please determine your trading lot size based on your account funds and risk tolerance.