Exploits Historical Relationship Between Silver and Gold Prices
| Strategy Type | Pair Trading and Mean Reversion |
| Market Outlook | Exploits Historical Relationship Between Silver and Gold Prices |
| Risk Profile | Lower Risk Due to Hedged Position |
| Reward Profile | 1.5:1 to 3:1 Risk-Reward on Ratio Normalization |
| Time Horizon | Swing to Position Trading 5-60 days |
| Capital Requirement | High (₹3,00,000 - ₹6,00,000 for dual margins) |
| Margin Type | NRML for both legs preferred |
| Best Used When | Silver-Gold ratio reaches historical extremes suggesting mean reversion |
| SILVER | 30 kg per lot (Big Silver) |
| SILVERM | 5 kg per lot (Mini Silver) |
| GOLD | 100 grams per lot (1 kg contract) |
| GOLDM | 10 grams per lot (Mini Gold) |
| Combined Margin | SILVER NRML approximately ₹90,000-1,20,000 plus GOLD NRML approximately ₹1,50,000 |
| Spread Benefit | Some brokers offer reduced margin for recognized spread positions |
| Total Typical | ₹2,50,000 - ₹3,50,000 for standard ratio trade |
| Formula | Gold Price per 10g divided by Silver Price per kg |
| Current Typical Range | 75-85 ratio on MCX |
| Historical Extremes | Below 70 silver expensive and above 90 gold expensive |
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