XAUUSD Trading Online - The International Online Gold Trading Market
The online gold trading market is an international market that is accessible to traders who want to invest & trade in gold. Traders can access this online gold trading market through online xauusd brokers. These online brokers also provide other instruments that can be traded online & gold is one of these. These brokers also provide currency trading services, metals trading such as silver & gold, stock indices trading & also oil trading.
In trading gold online, xauusd is traded against the USD dollar currency. This means that a trader will exchange US Dollars for gold or gold for US Dollars.
Gold trading symbol in the Forex market is denoted as Gold - traders wanting to trade gold will look for the symbol Gold that is used to represent gold.
Some brokers that offer gold may also select to represent the metal as just XAUUSD in their trading platforms, but as a trader know that when you trade xauusd in the online market it is denoted as XAUUSD.
The xauusd symbol XAUUSD, the first three letters represent xauusd and the last three represent the US Dollar.
How Gold is Traded
Trading in xauusd is the exchange between gold & US Dollar. When a trader buys gold, the trader will buy gold metal using US Dollars, when a trader sells xauusd they will exchange it for US Dollars.
The exchange of this transaction is done through an online broker.
Online xauusd trading is done through contracts. A trader will buy a contract of gold and sell a contract of gold. This contract will represent the same value as physical gold. Traders buying & selling gold online will do so through contracts. The profits or losses made from transaction of buying or selling xauusd will be calculated from these contracts.
The main reason why trading is done through contracts is so that traders can buy and sell their xauusd at any time with ease between them and other traders trading this market.
The gold contracts traded in the online market are therefore more liquid than when a trader wants to transact physical gold. Online xauusd trading therefore transacts more volume than physical trading of gold metal.
The price of xauusd in the online gold market is also the same price as that of physical gold.
Therefore a trader wanting to sell their physical xauusd will check the prices of gold online to know at which price to sell their gold.A trader might also choose not to buy physical xauusd bars and instead buy contracts of xauusd that will represent the same value as that which they would have bought of physical gold.
One advantage of buying gold contracts online is that a trader can close their xauusd contracts at any time when the online gold market is open with a lot of ease because there is a lot of liquidity in the online market which means that when the market is open there is always someone available that a trader can exchange their xauusd contracts with.
These gold contracts by provided by the gold brokers. These contracts are denoted by the symbol XAUUSD.
Another advantage of trading xauusd online is that a trader can trade this metal online from anywhere in the world. Gold trading is globally available for anyone to trade through the online gold brokers.
XAUUSD Brokers
Online gold brokers are companies that connect the retail investors to the xauusd exchange market. These brokers provide traders with trading software and traders will open trading accounts with the broker and use these accounts to login to the trading software and place trades in the online gold trading market using this software.
The profits and losses that the trader will make from their trading activities will then be credited & debited to this account. The account balance and statement of profits & losses will be displayed on this platform.
XAUUSD Account
This is the account that a trader will use to trade gold. Traders are required to open a gold trading account and deposit money & then begin trading xauusd online.
XAUUSD brokers offer trading platforms which are designed to stream live price quotes of xauusd metal to clients. Traders can then execute trades based on these price quotes from their trading accounts.
Leverage
In gold trading a small deposit can control a much larger trade & this is called leverage. Leverage helps traders to make bigger profits while at the same time keeping their invested capital to a minimum amount so as to reduce their risk.
Leverage is what makes the gold trading market popular among small retail investors because traders can invest in gold by using little of their money and borrowing the rest.
Demo Account
Gold demo trading account is a practice trading account meant for practice. The money is virtual & not real and this account is meant to beginners who want to begin trading gold. Traders can practice trading on this account and they can then determine if xauusd trading is an investment they want to make or not.
Live Account
A live trading account is the account that a trader opens when they have practiced long enough and they have decided that gold trading is a profitable investment for them. With this account a trader will deposit real money with their online gold broker and start making trades in the online gold trading market.
