Large investors often prioritize the option Forex Trading gold because of its great benefits. Also because of its stable nature. So what are those benefits? And why is Exness a quality gold trading place? Let Learn Forex Trading answer questions through the article below
Learn about Forex Trading gold – what is gold trading?
Also known as Exness Gold Trading. This is a form of trading through gold. Like stocks or foreign currencies, gold is bought by traders according to indices. They will sell this gold after monitoring the market to gain profit.
Large investors often prioritize the option Forex Trading gold because of its great benefits. Also because of its stable nature. So what are those benefits? And why is Exness a quality gold trading place? Let’s Teach Yourself Forex answer questions through the article below.
Learn about Forex Trading gold – what is gold trading?
Also known as Exness Gold Trading. This is a form of trading through gold. Like stocks or foreign currencies, gold is bought by traders according to indices. They will sell this gold after monitoring the market to gain profit.
Large investors around the world prefer Forex Trading gold because:
Great profit value
Gold is highly valued in the foreign exchange market. It has a solid relationship between high-weight currencies in the world such as Silver or USD. Any economic fluctuations can impact gold. This makes gold deeply influential. Exness gold trading brings huge, if not huge, profits to professional traders.
Sellers can easily find buyers and vice versa. You don’t need to worry about how to use Exness having difficulty finding customers. It also partly helps you reduce unnecessary transaction costs.
There is never a shortage of traders
As mentioned above, gold has a very high physical market value. Likewise, on the online trading platform, the liquidity level of gold is always at the top of the stable list.
Inflation is low and stable over time
Despite the strong impact on the economy, in general gold or metal transactions are still a stable choice. Traders Forex Trading gold can still be “safe” from financial fluctuations. Unlike currencies prone to inflation, gold does not fluctuate violently or continuously over a short period.
Despite stock fluctuations that cause currencies to decline and lose value, the interest rate on gold for traders is quite attractive and stable.
How can Forex Trading gold be profitable?
First of all, to profit from trading, you need to clearly understand market information and gold value fluctuations. Forex trading depends heavily on in-depth knowledge. So if you are not sure, you should consider it before starting.
Gold is a stable investment, but at the same time, its value is quite high. So to avoid too heavy losses, think carefully in advance.
See more: Instructions for registering an Exness account
To proceed Forex Trading gold, you need:
First is margin, which is the basis of almost all types of forex trading. Especially with trading on Exness, you can have a trading volume many times larger than the initial deposit principal. This is also the reason why Exness is so popular. Forex Trading gold helps you not need to spend all your capital. Unlike physical gold, which is prone to problems when exchanged, the exchange rate is also relatively inadequate. Exness gold trading is always updated with the most accurate market exchange rates.
A specific example of the advantages when trading gold online:
When exchanging 1 stick of gold in the physical exchange market, you need 35 million in capital (equivalent to 3.5 million for 1 tael of gold). When Forex Trading gold, you are completely allowed to use the leverage available in the Exness account feature to trade with an amount much greater than your initial capital. This means that if you are successful, you will earn a lot of profit. However, if you fail, the number of losses you make is not small. However, if you are a professional trader with a high success rate, this is not too scary.
Factors affecting price when Forex Trading gold
Let’s look at the factors below so traders can stay informed when trading gold:
USD fluctuations directly affect Forex Trading gold
USD is currently a high-weight currency globally. When the USD price is low, it can push the price of gold up. Conversely, when the USD price rises, it can push the gold price down. The reason for this is because USD is used to measure the value of gold. You can consider the most appropriate time to conduct Exness gold trading.
The economic and geopolitical situation
Based on the global economic situation, will also affect the price of gold. We have witnessed a huge increase in gold prices in 2020. This is the time when the COVID-19 pandemic is taking place, deeply affecting the global economy.
Economic data, interest rates
Professional traders will often prepare themselves with solid financial knowledge. In case the economy is too gloomy, they will base on that to exit the order or adjust their strategy Forex Trading gold. Therefore, when choosing to participate in the foreign exchange market, solid knowledge will help you avoid many risks.
Some tips when Forex Trading gold
To help you have a more general overview. Self-study Forex has compiled some useful advice from experts for you:
Forex Trading gold by purchasing stocks
You can trade gold indirectly through stocks. That means buying stocks from gold mining or exploration companies. This method is quite safe and does not require the user to store assets. However, there is also a limitation that not all mining companies will have profits that match the value of gold.
Trade using ETFs
Simply put, ETF is also an indirect way for Forex Trading gold. ETFs are created to track the value trend of a stock index, underlying asset or a group of stocks. The benefit of this method is that it allows traders to invest in a variety of different financial instruments. At the same time, the fund also has a limitation, which is a fairly small management fee. In addition, some gold trading funds also have not too high liquidity. This limits your way of trading gold.
Trade gold on Exness using the Gold Option
This transaction allows investors to sell their assets at a pre-fixed price at any time in the future. This method helps ensure that your gold loses less value. It also keeps the value stable in the market for you.
The disadvantages of this method are transaction fees and price fluctuations. That is, over time, both the contract and the option to reduce your gold will gradually decrease to avoid hoarding.
Forex Trading gold via CFD
Forex Trading gold via CFD helps traders speculate on both selling and buying sides. This method does not require you to own actual assets. Thanks to the leverage ratio, gold CFD trading has a fairly small deposit, suitable for traders who do not have a strong financial advantage.
Gold CFD trading platforms allow traders to speculate on both rising and falling markets with buy or sell orders. It also allows you to hold a trade for some time without changing your position.
Its disadvantage lies in charging a Swap fee if holding a transaction overnight.
See more: Registering Exness broker account on your phone
summary
Regardless of the method of Forex Trading gold, it still has its advantages and disadvantages. Therefore, it is necessary to consider carefully and research deeply before investing. If you are a new trader looking to learn, you can refer to information on Exness.
Above is some information about Forex Trading gold researched by Learn Forex Trading. I hope the information we provide will be useful to you. If you are ready to trade, register an account here to receive many incentives from the exchange!