XAUUSD Accounts - Types of XAUUSD Trading Accounts

With the growth in the popularity of xauusd trading the demand for different types of XAUUSD trading accounts has also grown. The different account types available for trading xauusd are:

1. Standard Account
2. Mini Account
3. Micro Account

The type of account that a trader will select depends on the amount of capital that a trader has for trading.

Standard Gold Trading Account

Gold is traded in lots known as contracts. The standard lot for gold is made up of 100 units. Because xauusd is measured in price per ounce, then these 100 units represent 100 ounces of gold. These 100 ounces of gold is what makes 1standard gold contract.

Hence when 1 ounce of gold moves up by $1 - a trader trading 1 lot of gold will make a profit of $100, this is because 1 contract of gold represents 100 ounces of gold.

For this trading account where a trader wants to open standard lots when trading xauusd a trader will require to have capital of at least $50,000.

Mini XAUUSD Account

XAUUSD is traded in lots known as contracts. The mini lot for xauusd is made up of 10 units. Because gold is measured in price per ounce, then these 10 units represent 10 ounces of gold. These 10 ounces of xauusd is what makes one mini xauusd contract.

Hence when 1 ounce of gold moves up by $1 - a trader trading 1 mini lot of gold will make a profit of $10, this is because 1 contract of gold represents 10 ounces of gold.

For this trading account where a trader wants to open mini lots when trading xauusd a trader will require to have capital of at least $10,000.

Micro XAUUSD Account

The micro lot for gold is made up of 1 unit. Because xauusd is measured in price per ounce, then this 1 unit represent 1 ounce of gold. The 1 ounces of gold is what makes 1micro gold contract.

Hence when 1 ounce of gold moves up by $1 - a trader trading 1 micro lot of gold will make a profit of $1, this is because 1 contract of gold represents 1 ounce of gold.

For this trading account where a trader wants to open micro lots when trading xauusd a trader will require to have capital of at least $1,000.

Choosing a XAUUSD Account

A trader will have to decide which type of gold trading account is best for them based on the amount of capital that they want to invest and start trading with.

Practice Demo Trading Accounts

One of the methods that a trader can use to determine which account type is best for them is by opening a demo trade account that will help them to gain more knowledge about how gold trading works.

When opening the demo trading account, a trader can then choose the amount of capital that they want to practice with, for example a trader can select the demo trade account balance of $10,000 or demo practice trading account balance of $50,000.

This way a trader can practice trading the xauusd market using the account balance that they plan to open a gold trading account with. With this trading account a trader can also practice how to trade with standard contracts or micro contracts depending on which contracts they will be trading with once they open their real trading account.

Demo practice trade account is a great way to get started and learn the specifics of the xauusd trading market. It gives new traders a chance to learn & practice gold trading for free with no risk of losing money. Demo accounts practice trading is a great way for a trader to learn and get used to the gold markets, execution methods of their broker and at the same time test various trading strategies which they will be using.