Trading precious metals such as gold and silver presents a very unique investment opportunity offering the chance to diversify and extend your portfolio. During market volatility or uncertain political or economic times, many traders choose to diversify their risk by trading gold/silver and to create a well balanced trading portfolio.
Trading metal is also considered as safe investment during uncertain market conditions when value of metal such as gold typically tends to fluctuate and such volatile market movements may present trading opportunities that hold potential significant returns.
Many investors also utilise metal trading for hedging opportunities, as trading metal creates great opportunities for hedging in every liquid market, with investors gaining more exposure with limited risk.
Metals trading operate in the same way as forex trading. You can trade gold just like trading currency pairs; you can take a long or short position. Uniglobe Markets offers the best conditions for precious metal trading by providing considerable leverage and expert support.
Start trading gold, silver or any other precious metals online today by simply opening up an account with us, or contact us for further information.
Gold Trading Example
Opening the Position
Opening price of the GOLD against the US Dollar (XAU/USD) is 1250.00
You decide to buy 1 standard lot (the equivalent of 100 ounces) at 1250.00.
Margin required to open the position is 1*100*1250.00*1/100=USD $1250
Closing the Position
Closing Price of the GOLD against the US Dollar (XAU/USD) is 1274.50
One week later the Gold has risen against the USD to 1274.50, you decide to take your profit by closing your buying position
Market movement= 1274.50 – 1250.00 = 2450 ticks
Gross profit on Trade = USD $ 1*2450 = USD$ 2450
|Spot Metal||Symbol||Type||Lot Size|
|Spot Gold||XAUUSDi||Spot||100 Ounces|
|Spot Silver||XAGUSDi||Spot||5,000 Ounces|