How to make money on gold?

Gold is one of the most volatile assets presented on every forex broker. Even bitcoin cannot compare in volatility with gold (well, almost) and you can earn more than $ 5000 per month

It is up to you to decide how much it is, a lot or a little, but in simple numbers, we made a calculation with an investment of $ 2500.

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Where to trade gold on Forex?

This is just as important a question as how to trade. Most traders prefer trading this CFD to a commodity instrument and it is included in their “trading portfolio” and millions are earned on it, then we could not pass by so as not to understand some of the details. Well, we were a little surprised.

First of all, we began to find out where it is more convenient for us to trade forex in gold. Which broker provides the best conditions and the smallest spread. We looked at companies, of course, only regulated forex brokers. although several times after registering with a regulated broker we ended up in an offshore company, which also interested us.

For gold trading, many forex brokers offer support leverage as the main difference, 1: 100, 1: 200 and even 1: 1000. Here, logically, everything is clear, the larger the leverage, the less amount we can enter the deal, but at the same time, the risk of getting out of the margin call is very high.

We asked several brokers a simple question that they don't like and can't always answer exactly, either the managers don't know themselves, or they don't want to tell the truth. If we trade gold as a non-deliverable asset (we do not physically buy or sell it, do not possess it), then against whom and how do we trade. The answers surprised us very much, we had not heard such nonsense for a long time, but the more or less correct answer was that all gold trading transactions are transferred to a liquidity provider, and the income of a forex broker is in a small commission.

Who is your forex liquidity provider for gold trading?

Not all brokers were able to provide us with this information, someone referred to the internal rules on non-disclosure of information, otherwise they proudly named their liquidity provider, and all trading in gold as a non-stop asset is brought to it. Well. We contacted liquidity providers, especially since we know many personally and asked to provide us with the conditions for trading XAUUSD - this is gold. We did not talk to forex liquidity providers in the offshore zone, we considered only the UK and Cyprus, since they are the main providers of liquidity in the forex market.

All have plus or minus the same conditions, namely XAUUSD, then a margin of 1% is a support level of 1: 100. So, we got a simple value at which the liquidity provider takes risks, that is, if our forex broker offers us to trade gold with a leverage of 1: 200, then all the risks are on his side, which means he is extremely interested so that we do not profited from trading gold.

Well. People call this system B-book and we strongly recommend that you check with your partner broker who is his liquidity provider, but it is also possible that he himself is a liquidity provider on all legal grounds and you can safely trade gold on his platform. Previously, we gave a recommendation for top forex brokers .

It remains only to figure out How to trade gold on the Forex market?

Not all brokers were able to provide us with this information, someone referred to the internal rules on non-disclosure of information, otherwise they proudly named their liquidity provider, and all trading in gold as a non-stop asset is brought to it. Well. We contacted liquidity providers, especially since we know many personally and asked to provide us with the conditions for trading XAUUSD - this is gold. We did not talk to forex liquidity providers in the offshore zone, we considered only the UK and Cyprus, since they are the main providers of liquidity in the forex market.

Gold as a CFD market instrument is subject to strong volatility and all possible trading strategies of the financial market are applicable to it. From market movement according to economic news, to RSI and Bollinger Bands. The main indicators of growth or decline are seasonal market indicators. As a rule, gold as a metal begins to grow during a period of decreased activity of traders in the financial markets, when part of the capital of traders begins to be withdrawn from high-risk assets and stops at XAUUSD. In fact, the simplest and most predictable forex trading is gold. Therefore, based on seasonality, it is possible to play long-term, but consider your broker's swap estimate. The usual and proven speculation in the seasonal market is guaranteed to give you X's.

It should also be taken into account that gold trading is available mainly to professional investors due to the increased margin requirements, therefore any large transaction collects all pending order book and, as a result, changes in quotes within any timeframe.

As for intraday trading, a year during the day you want to open or close several poems, or at least understand the points of entry and close positions in gold. There are enough robots on the market, both with short-term expiration and up to one month, and they will very clearly define the pivot point. We trust these robots with our investments, as we wrote earlier that the gold trading market is very, very predictable, and the trading robot performs a simple function of data analysis and a little mechanical work.

If you don't know how install a trading robot for trading gold, then fill in the registration field and our specialists you will be provided with detailed information

How to make money on gold?

make money on gold trading

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