Have you ever given a gold ring to your boyfriend as a sign of your true love? Gold has been the most precious metal since the beginning of civilization. It is still considered the final currency և the final repository of value in times of political uncertainty. The gold market has been growing steadily over the past ten years as spot prices recently broke the historical barrier of $ 1,200 per troy ounce. There has been a recovery since then, with prices falling to $ 1,100 an ounce, but this upward trend will continue for some time.
Over the past decade, many investors have turned to foreign exchange following the historic stock market crash. Very small investors have lost more than 60-70% of their savings accounts as a result of a stock market crash. Now, forex is a great way to make money. They say that foreign exchange trading will make many millionaires this decade.
Most people do not know that you can trade gold in foreign currency. Many forex trading platforms that you use to trade currencies allow you to trade gold and silver against the US dollar (US) from the same platform. Both of these precious metals are in high demand in industry as the global economy recovers from the recession, and gold and silver prices are expected to rise sharply as industrial output rises and consumers start buying again. When you trade in a currency pair, you go for one currency long and the other short. That is, you just buy one and sell the other.
In Forex gold trading, you trade one ounce of gold against the US dollar (US dollars) in the spot market. So, as in the case of currency trading, when you trade gold in foreign currency, you are taking a long or short position against gold or the dollar. There are many currency pairs that you can trade, such as GBPUSD, EURUSD, UADUSD, NZDUSD, JPYUSD. In Forex, trading gold instead of gold is almost the same as exchanging gold for one currency in a pair, and the other currency is always the US dollar.
So when you trade gold in foreign currency, you are trading one troy ounce of gold against the US dollar. Interestingly, its symbol is also XAUUSD, where XAU represents one ounce of gold. Now, suppose the quotation mark in the spot market is 1100 XAUUSD. This means that one troy ounce of gold is currently $ 1,100 in the spot market.
As with any financial market, gold spot pricing has become popular. So if the price quote is 1110/1115, that means you can sell one troy ounce of gold in the spot market for $ 1,110 և buy one troy ounce of gold for $ 1,115, which means you have to pay $ 5 for one troy’s spread. ounces when Gold traded in the spot market. Spot gold is a fast-growing foreign exchange market, and the spread continues to change throughout the day.
The standard currency trading lot is now $ 100,000. But in the case of gold on foreign currency, the standard lot is equal to 10 troy ounces of gold. So if you find that the price is 1112/1117,: you are interested in going a long way. In that case you will have to buy 1 lot of gold, which is equal to 11170 dollars. Spot gold market is a fast moving market, և price quotations continue to change. So suppose after just 60 minutes you find that the quote is 1120/1126. You see the profit, you decide to go it cheap and risk the low bandwidth you are only fooling yourself. Now, if you used leverage, you would need a much lower down payment to make a $ 30 profit in just 60 minutes.
Gold is also known as anti-dollar. This means that they are the inverse ratio of gold to the US dollar. This reversal can help you safeguard your position in other currency pairs.