XAUUSD Account Explanation
2 Types of XAUUSD Accounts
In recent years retail gold trading has grown hugely in popularity and the demand for different types of xauusd trading accounts has grown. There are many different xauusd trading account types available to any gold trader who wants to invest in the online gold market - Gold Trading Account Explanation.
The gold market is a highly gold leveraged market for speculating on xauusd trading price valuations. Traders can purchase big amounts of gold trading units using leverage - Gold Trading Leverage is what makes gold trading attractive to many online gold traders - with gold trading leverage a trader can make more profits or losses because they use less of their capital & borrow the rest.
There are different types of xauusd trading accounts available to help investors better manage their gold trading account capital as well as their gold trade transactions.
How a Real Gold Account Looks Like
It is therefore important that the traders consider what they want to get out of their gold trading, before deciding on the xauusd trading account type to open.
Below is a comparison of the two types of xauusd trading accounts commonly used to trade gold. The xauusd trading account types review below explains the different features of each of the types of gold trading accounts.
1. Standard XAUUSD Trading Accounts Explained
Gold Account Explanation - Standard XAUUSD Account. A Standard XAUUSD Account is denominated in US Dollars and gold trade transactions are placed using standard lots. One lot is also known as a one contract. Minimum opening capital - at least $10,000 USD.
1 contract refers to the minimum size of a single gold trade transaction. This gold trading account option is the most suitable for gold traders with enough capital to invest in xauusd trading - this gold trading account option requires $10,000 & $50,000 dollars as starting capital, for this standard xauusd trading account the trader will not be undercapitalized and with good gold money management guidelines and gold money management strategies, this standard gold trading account option has the best chance for profitability because it is not undercapitalized. Under capitalization is what makes most traders in gold trading not profitable.
It is not recommended to open a standard gold account unless you have an account balance of at between $10,000 minimum and $50,000.
Professional Money Managers recommend $50,000 Dollars minimum to open this standard xauusd trading account & only opening trades with only 2% of the trading capital you have in your xauusd trading account. However, most online gold brokers will still open this standard xauusd account for you if you have more than $10,000.
With gold trading leverage of 100:1, you will borrow from your gold broker (with gold leverage of 100:1, your gold broker gives you $100 dollars for every $1 dollar that you have in your xauusd trading account, therefore if you have $1,000, the broker will give you $100 dollars of gold leverage for every $1 dollar you have, meaning after gold leverage you will have $1,000*100=$100,000 which you can then use to trade gold).
Micro XAUUSD Trading Accounts Types Described
Gold Account Explanation - Micro Gold Trading Account. Micro Gold Trading Accounts use lot sizes of only equivalent one hundredth that of a gold trading standard lot. These Micro xauusd trading accounts are often appropriate for gold traders without a lot of gold capital & can sometimes be opened with only a $5 minimum balance.
This Micro gold trading account option allows the trader to open trades in micro lots. 1 gold trading micro lot is one-tenth of a gold trading mini lot and one hundredth of a gold trading standard lot.
This Micro gold trading account option is generally best suited for gold account equity balances that are between $1,000 and $5,000
In gold trading, one gold trading standard lot is the standard transaction minimum of gold instrument traded in the gold market. But many gold brokers offer fractions of this gold trading standard lot to enable more retail xauusd traders to access the gold market. Being able to offer gold trading micro lots reduces the minimum gold trade transaction size thus giving the beginners and also those gold traders without a lot of gold capital to begin trading and get a feel of the xauusd market without investing a lot of gold trading capital.
There are learn gold trading online tutorials that a trader can read even before opening a real xauusd trading account, and to get extra practice in gold trading before opening a real gold trading account a beginner trader should open a practice Gold demo trading practice account with a broker - so as to practice placing gold trade transactions before opening a real xauusd trading account & investing with real money.
During the gold trading training period using the xauusd trading practice account, the beginner gold trader will learn the key factors needed to succeed in gold trading such as: gold trading education, gold trading money management, gold trading plan & gold trading systems.
The types of gold trading strategies used and the skills required for any of these 2 xauusd trading accounts are essentially the same - those gold trading skills and gold trading strategies required for the Standard gold trading account or Micro gold trading account are the same the only difference to be adjusted are the gold money management guidelines for each xauusd trading account type.
