Learn Gold

Trading

woohoo fx gold trading

Traders can profit from the price movements of commodities like gold without actually owning any gold. The most popular way to do this is to derivatives trading – CFD trading with gold. Contracts for Difference (CFDs) are essentially temporary orders to buy/sell a pre-stated amount of gold. Profits and losses are determined by changes in the gold price while the contract is active. All gold CFDs have a contract duration.

The Rich and Fascinating History of Gold Trading

Gold has been mined since prehistoric times. This precious metal was initially found in small pieces known as nuggets at the bottom of rivers. Gold demand increased so sharply that the ancient Egyptians began mining it as far back as 2000 BC. Gold has been used for millennia as a trusted form of money for trading purposes.The gold standard was a monetary system whereby countries would back up their currency with an equivalent amount of gold. The gold was held in the Reserve Bank of each country, since countries accepted gold as an actual currency. The UK left the gold standard at the start of WWI, and soon after, many countries followed suit.
Investors and traders have access to several types of gold trading options, including:

  • Gold Coins and Gold Bullion –
    Bullion is the term used to describe a group of precious metal. It is measured in bars, and has a specific weight.

  • Gold Certificates –
    These resemble bank notes, and they began in the 17th century. Gold certificates serve as evidence of gold ownership. These can be transferred much like cash banknotes. Nowadays, there are several banks that issue gold certificates, and they reflect a quota of gold coin or gold bullion.

  • Gold Futures –
    Gold futures are contracts that indicate how much gold will be delivered in the future at a predetermined price. These gold futures contracts are used by UK and other investors to manage price risks. They are all traded at centralized exchanges, and contracts provide greater flexibility and leverage than trading actual gold by itself.

  • Gold ETFs (Exchange Traded Funds) –
    Since gold is expected to generate good returns over time, ETFs have been established. These funds are managed by experts in gold trading. They have the potential to offer much better returns on gold investments than a trader could generate on his/her own. The gold price influences the performance of ETFs.

How to trade gold?

  • Open a trading account at Avatrade

  • Fund your account to have a sufficient trading budget

  • Choose the desired position size

  • Select leverage

  • Open a Long (buy) or Short (sell) position according to your analysis

Gold Exchange Info

Gold markets are closely correlated with currency markets, macroeconomic factors, and geopolitical events. Multiple factors come into play when determining the price of gold:

  • The MT4 gold symbol is GOLD

  • The spread on gold trading is $0.50

  • The minimum trade size for gold is 1

  • Gold is traded on the Nymex exchange

  • Gold trades between 11 PM and 9:59 PM

  • The margin requirement for gold is 0.50

  • Gold can be traded in increments of 0.01

Open an Account With An Irish Regulated Broker

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Woooo Fx Education

Camden Street Lower, St Kevin's, Dublin 2, Ireland D 02 XE 80 | +353-214-651-000 |info@woohooai.com

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Trading in leveraged currency contracts comes with substantial risk. You must be aware of these risks before opening an account to trade. High leverage amplifies gains as well as losses, leading to potential loss of the entire account balance. Trading in leveraged currency contracts may not be suitable for every investor. Never speculate using money that you cannot afford to lose.

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