Start Gold Trading With eToro!
Although gold trading doesn't take place in the forex market, but rather in the commodity trading market, gold trading procedures are similar to forex trading procedures and therefore there are many online forex traders who add online gold trading to their financial trading activities. This is why eToro has added gold as well as silver trading to the eToro forex platform. Trading gold in addition to currency can diversify your portfolio and add another dimension to your market outlook, whether you are investing or day trading, spot trading or futures trading.
How to Trade Gold?
Of course to trade gold you don't need to carry any gold bullion around. We have been able to incorporate online gold trading into our software seamlessly because online gold trading is done in the same manner as currency trading. Due to our traders' experience with currency futures trading, they should have an automatic familiarity with gold futures trading even if they have never traded gold before, unlike trading stocks or stock options for example, which would take additional training. All you have to do is predict whether the price of gold will be going up or down against the USD, set your leverage, choose the amount of gold you want to buy or sell, and open the trade. To determine these parameters you can view live charts of gold prices and then perform technical analysis the same way you do for currencies. To monitor gold prices you can set alarm signals to go off when the price of gold hits a certain value. The gold market also operates 24 hours a day, except on weekends, so you can easily fit it into your trading schedule.
Gold Trading Strategy and Tips
There are several ways in which gold trading differs from foreign exchange trading. The gold market is a lot less volatile, and therefore scalping while trading gold is nearly impossible. Because gold is much more expensive in value, you will need to make larger investments with lower leverages (the range for gold trading is 1:5 – 1:25). However, this kind of large investment can make a huge difference to your portfolio since it will stabilize and hedge other, more volatile trades. Once you get the basics of gold trading, which shouldn’t take long, you can incorporate gold trading into your trading system, or even develop a new system specifically for trading gold. The best way to learn more even more gold trading tips and tricks is to go to our forums and the eToro blog, to see what the experts have to say about it.
Gold trading at eToro is commission free. To start trading gold with eToro simply log into your account, go to eToro's expert mode and click on the commodities tab in the live rates box.