2. · Gold trading is expensive business. Margin requirements are much higher than in the forex market, and the spread is also very high: between 40 pips and 80 pips in some cases 6. · Trading gold vs trading forex. Gold has traditionally been seen as a store of value, precisely because it is not subject to the whims of governments and central banks as currencies blogger.comted Reading Time: 7 mins · The spot metals traded on forex trading platforms are gold and silver. These two metals play a very important part in the way individuals live and do business. Gold
How to Trade Gold in 4 Steps
The spot metals traded on forex trading platforms are gold and silver. These two metals play a very important part in the way individuals live and do business. Gold is a store of value, a medium of exchange and a means of preserving wealth for thousands of years. Gold is more valuable than silver. Silver has also been used as money in historical times, but its modern use has shifted to the industrial and pharmaceutical how to trade gold in forex. Even though silver is cheaper than gold, it is actually more volatile than gold, with a tick movement being 50 times in value to that of the gold asset on a forex platform.
Gold and silver are sometimes traded as a CFD asset on the forex platforms, in which case they are paired against the US Dollar or against the Euro, how to trade gold in forex. Contract specifications refer to the peculiar features of the asset that affect the way traders trade the asset. The contract specifications for gold and silver on a forex platform are as follows:. Gold and silver are commodity instruments which are usually available for trading from Monday to Friday at 10pm GMT to 9pm GMT each day, with a one hour break from 9pm GMT to 10pm GMT.
During the break period, no new orders market or pending can be set, and any pending orders cannot be adjusted. There are no time limits on contracts for trading gold or silver. Positions can be held open for as long as possible.
Whatever the trading style the trader chooses, one thing is for sure: traders do not have to worry about expiring contracts and rollover of such positions when trading gold or silver. Gold and silver are commodity instruments which tend to have large range of movement and large spreads. Therefore, the margin requirement for trading gold is much more than is required for trading forex or stocks on the forex platforms. Certain trade conditions will apply to gold and silver on a forex platform.
Some of these conditions are as follows:. Steps to Setting Up a Gold or Silver Trade on a Forex Platform. The prices of gold and silver are subject to influence by fundamental factors. However, the driving force for the price movements of gold and silver are different.
Gold is essentially a safe haven asset, which gets a lot of demand when there is uncertainty in global financial markets and traders wish to undertake capital preservation and not capital appreciation.
A very clear example of this was seen recently just after the US election. Traders and markets all over the world reacted by selling off the US Dollar and other risk-on assets such as the Aussie Dollar, fearing that a Trump emergence as US President-Elect would unsettle markets with his hardline stance on trade.
At this time, traders rushed to buy gold, causing the price to appreciate. When Trump gave his post-election victory speech, how to trade gold in forex, it was seen as a soothing balm which settled markets, causing traders to exit gold and go back to the stock markets and US How to trade gold in forex. Recommended : Best Brokers to Trade Gold and Silver Online.
Gold can be traded on a bi-directional basis long and short. The sort of market uncertainty described above, triggered by economic and political events, is basically what drives gold prices. Trade Example: If a trader goes long on gold at a price of Silver can also be traded on a bi-directional basis. The fundamentals for how to trade gold in forex are slightly different, but price movements still tend to follow those of gold. Trade Example: If a trader decides to go short on silver at a price of Necessary cookies are absolutely essential for the website to function properly.
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How To Scalp GOLD In Forex - Gold Trading Strategy In 5 Minutes
, time: 4:55How to Trade Gold in Forex | TheTradingBuzz
8. 6. · Gold Trading Tips for Beginners by FxPremiere – Do you want to trade a commodity that is both incredibly stable and still represents significant opportunity for growth? There’s a reason why so many investors turn towards gold — especially in times Estimated Reading Time: 6 mins 2. · Gold trading is expensive business. Margin requirements are much higher than in the forex market, and the spread is also very high: between 40 pips and 80 pips in some cases 6. · Trading gold vs trading forex. Gold has traditionally been seen as a store of value, precisely because it is not subject to the whims of governments and central banks as currencies blogger.comted Reading Time: 7 mins
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