Trading Gold

Gold has often been used by many experienced traders as a hedge versus various market conditions. Gold can often be considered a “risk off” contrarian investment; when traditional equity markets fall, gold can rise. If the SPX, DJIA or FTSE 100 falls, then gold may rise as traders and investors seek out what is often termed “safe havens”. Moreover, experienced traders often choose gold as a hedge to many of the positions they take in the market place. For example, if traders are short certain currency pairs, there may be a correlation and logical reason for being long gold. Similarly, if Brent or WTI oil rises on the market, then gold can often fall.

 

As with trading currencies Currency Hedger provides: competitive spreads, fast execution and advanced trading tools, in order to trade gold efficiently. Traders can experience trading this commodity by initially applying for a free practice account today

The benefits of trading gold through Currency Hedger

  • Low spreads through our ECN liquidity pool.
  • Direct market execution though our STP model.
  • Low commissions.
  • No extra fees.
  • Hedging and EAs allowed.

Contract specifications

Description Spot Gold Spot Gold (ESMA)2
Symbol on Platform XAUUSD XAUUSD.
Digits 2
Margin Percentage 1 5
Tick size 0.01
1 Lot size 100 Oz.
Tick value of 1 lot $1.0
Minimum trade size 0.01 lots
Minimum size increment 0.01 lots
Minimum limit & stop level 0.1 pips
Execution mode Market
Spread1 Variable
Swaps Available here
Commission3 $15.0 per lot
Margin requirement Trade size (lots) x contract size x market price x percentage / 100
Daily Working hours4 01:05-23:55
Monday – Friday

1   Click here for General Risk Disclosure.

2   The European Securities and Markets Authority (ESMA) announced its decision to implement intervention measures which include a limit on the maximum leverage that can be offered to retail clients. The new measures are temporary and will take effect on your account starting from 1st of August 2018.

3   To learn more about Commission, visit the Trading Condition by clicking here.

4   Server time is adjusted according to Cyprus local time. During the Day Light Saving Time our operation and server time are adjusted according to the New York time (EST).

Gold trade example:

Long position
Open Price = 1370.00
Closing Price = 1390.50
Trade size = 1 lot (100 ounces)

Required Margin to open 1 lot (100 ounces) of Gold = 1 x 100 x 1370.00 x 1/100 =$1370

Profit/Loss Calculation

The Buy position (1 lot) was closed (sold) at 1390.50 from a 1370.00 open.
Market movement = 1390.50 – 1370.00 = 2050 ticks.
P&L Calculation = $1 x 2050 = $2050

With your account being setup, you have access to a wide range of valuable information about the forces affecting the Gold market price, via our Trading Blog.