Frequently Asked Questions

• 1.  

  What is palladium trading?

  Before we define palladium trading, let us just shed a little light, though not much needed, on the metal itself. You can spot this metal with its natural shine in electronics, jewelry, and automotives. Because it is high in demand, people trade, or rather buy or sell this metal, in a variety of ways:

  • Spot trading: It is the simplest one. It is buying and selling the metal directly at the market price prevailing in the market.
  • Future Contracts: Instead of trading the palladium now, just trade it at a set price in the future.
  • Palladium CFD trading: Trade the price movements of palladium without owning the physical metal by holding CFDs on trading platforms.
  • ETFs: Invest in funds that track the metal’s prices.
  2.  

  What is a Palladium CFD?

  The previous answer might have left you wondering what palladium CFD trading is. Let us elaborate on the answer here. CFDs is a short for Contracts for Difference. Traders speculate on the price of the metal:

  • Will it go up or down?
  • They place a buy order or a sell order according to that.
  • Traders buy (go long) if they expect the price to rise.
  • Traders sell (go short) if they expect the price to fall.
  • The aim is to make the profits from the difference between the sell and buy price.

  CFDs allow investors to do all the above without going through the process of owning the underlying asset. They just hold a contract that tracks the changes of the price for this metal.

• 3.  

  What are the advantages of trading Palladium CFDs?

  Other than not owning the metal, as not of all of us can sell the metal to the right jewelry maker or automotives companies to, palladium CFD trading offers the following advantages:

  Leverage trading:

  • Online trading platforms allow you to invest in this metal with lower capital by utilizing leverage. For example, with 1:20 leverage, you can control a position 20 times larger than your initial investment. If you invest $1, you can trade as if you had $20.
  • Leverage allows you to increase potential profits, but it also magnifies losses, meaning you could lose more than your initial investment.

  Long and Short Trading:

  • Another good thing about trading palladium through CFDs is that you can benefit from both falling prices and rising prices.

  Accessibility:

  • Investing directly on a palladium trading platform provides you direct access to the market. Since the demand for this metal is high,
  4.  

  When can I trade palladium CFDs?

  To start trading palladium through CFDs, first you need to know “when” to trade, or palladium trading hours.

  The good news is that you can trade palladium 24 hours, 5 days a week. Of course! After all, the palladium trading hours follow the global trading hours. Since palladium is traded globally, when one market closes, another one opens.

  The main trading sessions occur in different financial centers worldwide, including:

  - CME Group (COMEX Futures Market) – New York:

  • Trading Hours: Sunday–Friday: 6:00 PM – 5:00 PM ET (Next Day)
  • Break: 5:00 PM – 6:00 PM ET (1-hour pause)

  - London & Zurich OTC Markets (Spot Palladium):

  • Active during European trading hours, overlapping with New York hours.

  - Asian Markets (Tokyo, Shanghai):

  • Trade palladium during Asia-Pacific hours, often setting the early price trend for the day.
• 5.  

  What factors influence palladium trading prices?

  Supply and Demand

  • Just like any other commodity, the supply and demand dynamic plays an essential part in deciding the price of palladium. As one of the rarest metals that is mainly manufactured in specific regions, mainly South Africa and Russia. As such, any disruptions in these areas can directly affect the supply of this metal. The rarest it is, the more expensive it is.
  • The biggest demand comes from the automotive industries. The higher the numbers of vehicles produced, the higher the demand on the metal.

  Geographical Events

  • This has been already mentioned earlier as it directly relates to the demand of this metal. Political events that are mainly concentrated in South Africa and Russia, directly affect the prices of this rare metal.
  • The biggest demand comes from the automotive industries. The higher the numbers of vehicles produced, the higher the demand on the metal.

  Technological Disruption

  • Since palladium also goes into the making of some electronics, the technological sect can affect the prices. When technology companies choose a cheaper option such as platinum, the demand for the palladium falls down, and the price of the rare metal also falls.
  6.  

  How volatile is the price of palladium?

  The white gold, as some refer to, has gained a reputation of being highly volatile when compared with other precious metals such as silver and gold. Let us have a look at the reasons:

  It is a relatively new metal

  • Compared to the ancient glamour of gold, palladium is highly volatile and so is the high demand for it. It was not until the 20th century that the demand for this metal started to increase as the automotive sector took off. As a result, investors stay skeptical about palladium’s ability to provide stability in times of uncertainties.

  The supply of palladium is limited

  • We have mentioned before that the supply of this metal is concentrated in two main regions around the world. Any natural disasters, or political unrest can affect the supply coming from those two main regions.

  A smaller market

  • The gold market is estimated at $5 trillion while the palladium market is projected to top out at $24 billion in 2023. The reasons for that have been already mentioned: less supply, and recent discovery.

  The above reasons all contribute to the high volatility of this shiny metal and to the fact that the demand for it is unpredictable.

• 7.  

  Can I trade palladium CFDs outside market hours?

  • Unlike traditional exchange-traded palladium futures, palladium CFDs are OTC products, offering extended trading hours beyond regular market sessions.
  • Monday to Friday: Often follows NYMEX hours but extends due to over-the-counter markets.
  • After-Hours Trading: Many brokers allow trading even when the physical market is closed.
  • Weekends: Usually closed, but some brokers might offer limited trading.
  8.  

  How do I start trading palladium CFDs?

  To start palladium CFD trading, you need to:

  • Choose a reliable broker. A regulated broker that offers support around the clock can make your trading experience more seamless. Additionally, search for a broker that has competitive spreads, leverage, a wide range of assets, as well as regular analysis of the market.
  • Study the markets. Before you start your trading journey, have a good understanding of the market, especially palladium markets and the major trends that can influence this metal’s prices.
  • Open a demo account. A demo account gives you a chance to explore the different features of a platform, test your strategy and gain more confidence in your trading skills without risking any money.
  • Open a live account, and keep up to date with the news around. Do not forget to use all risk management tools available for you.
• 9.  

  What risks are involved in palladium CFD trading?

  The risks of trading palladium CFDs are closely linked to the factors that affect its prices.

  • Sudden disruption in the main producers, South Africa and Russia, affect the demand and hence the prices of the traded metal.
  • Changes in car production, regulatory shifts, or advancements in alternative technologies can impact demand.
  • When compared to silver and gold, this rare metal has less liquidity, which can sometimes lead to wider spreads.
  10.  

  Why choose your platform for palladium CFDs?

  There are a variety of factors that make CFD palladium investors choose STARTRADER platform:

  • We offer investors support along the way in many different languages, around the clock. If faced with any problem or concern, you can directly call our customer support.
  • Our spreads are one of the most competitive in the market. As such, investors can aim for higher potential returns.
  • Our spreads are one of the most competitive in the market. As such, investors can aim for higher potential returns.

  We have several platforms to choose from. You can go for Web Trader, if you prefer not to go through the hassle of downloading any software. You can download our app if you prefer to trade on the go. Additionally, we can choose the classics: MT4 and MT5.

  In addition to a demo account that allows you to practice and improve your skills with virtual money, we have ECN and STP accounts.

• 11.  

  Do you offer leverage for palladium CFDs?

  Yes, our platform offers a flexible leverage on most assets as high as 1:1000*. While a high leverage offers you the advantage of taking control of larger positions with less capital, it also increases the potential risks.

  *Leverage above 1:30 may not be available in certain regions due to regulatory restrictions.

  To mitigate risks, make sure to set a stop loss, study the market carefully, and stick to your strategy.