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Understanding this allows you to determine how much you can potentially gain or lose with each price movement. For example, if silver prices increase by ₹1 per gram, your profit per contract would be ₹30,000 (₹1 x 30,000 grams). Conversely, if the price drops by ₹1 per gram, your loss would also be ₹30,000. This calculation is crucial for managing your risk effectively. Knowing the value of each contract and how price fluctuations affect it helps you set stop-loss orders, manage your position size, and make sound trading decisions. This is all part of having a well-thought-out trading strategy.
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