Top Reasons to Trade Gold
Over the past ten years there has been a dramatic increase in interest in Gold as a form of investment and safekeeping. Many investors are just beginning to discover the ability to trade gold in the forex market. Prior to the 1990’s the forex market was primarily an exclusive investment vehicle that was dominated by large banks and financial institutions. However, today the ability to trade gold against other currencies and primarily the U.S. dollar is now available to retail investors. That means that you can login and trade gold on a 24 hour basis right from home with your own trading platform. There are a number of advantages to trading gold on a forex platform:
Trade up to 100:1 Leverage
The use of leverage (more buying power) means
that you can increase your possible financial gain
with a smaller initial risk of funds.
For example if you were to open a trade with a
risk of $1000 and you used 100:1 leverage, you
would be able to trade $100,000 in value of gold
through the forex account.
Trade Anytime of the Day
Trading gold in the forex market enables you to trade 24 hours a day during the weekdays between 5:00 pm Eastern time on Sunday to 5:00 pm Eastern time on Friday. The forex market is an international market unlike traditional stock exchange markets which are limited to their specific business hours of trading.
As a trader, one of the most important things to consider before entering any trade is will you be able to exit the trade. Every market trade in any investment requires a buyer and a seller. The forex market is the world’s largest marketplace with over $3.2 trillion dollars of trading activity per day. That is good news for whenever you want to exit your gold trade.
Trade up or down
In forex you can trade gold both up and down. Most people when trading only think in one direction and usually that direction is up. However, as a gold trader with a forex platform you have the ability of trading both for or against the price of gold. In other words if you think that the price of gold is going to go down rather than up you could buy the US dollar against the price of gold.
Before you attempt to risk your own money trading gold in the forex market, there are free demo accounts which forex brokers offer in which you can try out their trading platform and trade with a virtual demo account before you fund a live account.