Professional gold trading online with Golden FX
Probably every internet user has heard about the Forex market. However, not everyone knows that you can trade not only currency pairs but also precious metals, including gold. Forming the strategy of gold trading online, it is worth to rely on the existing methods used to work with currencies, making some adjustments and corrections in them. Below, you’ll find out how to trade gold online, what the peculiarities of working with gold are, and how to get the maximum profit from such a trade?
Specifics of working with gold on Golden FX
Before you start trading gold on the trading platform, it is worth to familiarize yourself with the basic characteristics of the metal`s behavior in the market. Gold is considered a volatile metal and, therefore, even if the price of it is steadily declining for any period of time, the likelihood that it will subsequently grow is very high.
That is why it is recommended to buy futures contracts for gold at a time when its price is falling. If the decline continues after the transaction, it is not worth panicking. It should be taken into account that working with gold can only bring profit in the long run.
When trading gold online, it is worthwhile to know that the price of gold depends on the influence of the following external factors:
- • The dollar rate — the higher it is, the cheaper the precious metal becomes.
- • Energy prices (especially for oil) — the higher they are, the higher the value of gold is.
- • The geopolitical situation in the world — when there are wars and riots in regions specializing in gold mining, its value on the market starts to grow rapidly.
- • Crisis phenomena in the economy — at all times in the event of global financial problems in the country or in the world, investors invested in gold, thereby increasing demand for it and promoting its value in the market.
Online gold trading in the market is ongoing, but quotes are fixed only twice a day – at 10:30 and 15:00 London time. For the designation of gold, the XAU letter combination is used. The size of one lot is 100 ounces, which in monetary terms is approximately equal to 150,000 dollars.
Few traders can boast about having such a large amount on their account, so you will have to use your leverage to work with gold. With a leverage of 1:100, you will have to invest much fewer of your own funds – only $1,500. With a leverage equal to 1:500, you’ll need to invest only 300 dollars.
How to trade gold futures online using trading strategies
In order not to fail in the very first minutes of entering the gold market, it is worthwhile knowing the basic rules of online trading in gold and stick to a certain strategy. There are two basic types of strategies for working with gold on the market.
A strategy based on world news
Trade that is based on news reports, has a chaotic nature because changes in the world economy often occur within a short period of time. If traders receive information about any incidents or economic shocks, the prices for gold instantly respond to them with a significant growth.
A strategy based on the correlation of currency pairs
To work on the basis of the currency pair strategy, specialists use knowledge about the correlation between the pairs such as gold/US dollar and Australian dollar US dollar or euro/US dollar or US dollar/Swiss franc. The first two relations are characterized by direct dependence, and the latter by the inverse.
When you’re engaged in online gold trading business, you need to be able to analyze the behavior of market players and draw your own conclusions based on the findings. To develop a behavioral strategy that generates profit, a trader should study the following:
- • A position of the gold mining in the market and the success of gold mining enterprises
- • The rules of trade established by central banks
- • The situation inside stock exchanges trading gold
- • Transactions conducted with real gold on London exchanges
If you want to know how to do gold trading online properly, do not work with gold on the eve of major economic and political events such as bank statements, statements by heads of state, meetings of politicians at high levels, etc. Practice shows that the results of such events have a significant impact on the value of precious metal.
The creation of a competent behavioral strategy is not an easy task. In order to get a real profit from gold trading, a trader needs to understand all the nuances of working in the market, and also be able to apply this knowledge in practice.
Online gold trading tips – how to start trading gold
In order to become a trader and work with precious metals on the market, you must perform the following actions:
- • Find a broker among the best online gold trading sites that will act as an intermediary between the trader and the market, while charging a certain fee of the amount of transactions conducted.
- • Replenish your account in the system and download the program (terminal) necessary for working in the market.
- • Receive training, using educational materials and the demo-mode, in which all the money that is in the trader’s account is virtual.
- • Start an online gold trading business.
Gold trading is a rather complicated and risky business. In order to gain access to trading, you must purchase at least one lot, equal to 100 ounces of gold. In this case, the risk is very high because you can lose a fortune in case of a failure in just a couple of minutes. However, if the trader has enough experience and a considerable amount of money on their account, it is still worthwhile to risk and play for a long term. As a rule, gold, due to its high volatility, still returns to the previous price even after a significant rollback.
Main advantages of trading silver and gold on Golden FX
The best way to trade gold online is to use Golden FX. The main advantages of this broker include:
- • Low spreads fees
- • Credit leverage of 1:50
- • Direct access to the best liquidity providers
- • No hidden overpayments and interference in your trades
- • A high speed of market execution regardless of the volume of the transaction