How to Open A Gold Trading Account
This learn gold trading tutorial will show traders how to set up their trading account so that they can begin to trade gold. Before opening a gold account there are various factors that traders should consider before taking this step.
To open a xauusd trading account, traders need to find an online xauusd trading broker & then they can setup their trading account with the broker that they choose. Once a trader opens this xauusd trading account the trader will then use it to place trades in online gold market & the profits & losses that they make when trading will be accounted for in this xauusd trading account.
A trader will need to consider the following factors when opening a gold trading account:
Regulation of XAUUSD Trading Broker
Before opening a gold trading account traders must first know that they should only choose to trade with a regulated xauusd trading broker. In gold trading there are hundreds of gold brokers, some are regulated and other which are not. A trader must do due diligence when selecting a broker and check the regulation license details of the broker they want to trade with. Remember some brokers which are not regulated will write an article on their gold trading website about gold trading regulation and link to this article - if a trader is not careful they will be tricked into thinking that the broker is regulated, make sure to check the license details of the broker & you can also confirm these details with the regulatory authority regulating the broker.
Gold Trading Leverage
Traders should consider the gold trading leverage offered by the broker when it comes to opening and trading accounts. With gold trading leverage a trader controls a large amount of capital while using little of their capital. Gold Trading Leverage is one of the reasons why a gold trading is very popular because traders can make a lot of profit from gold trading using little of their money.
A trader should therefore consider the gold trading leverage given by a broker some brokers give 100:1 and others as high as 400:1, with gold trading leverage 400:1 a trader who deposits $1,000 can borrow $400 for every $1 that they have & therefore the trader using this gold leverage will control $400,000 which they can use to open trades with.
Stop Out Level
This is where a broker will close all the trades of a trader if the traders make losses beyond a certain level. The best brokers will implement their stop out level at 20 % and at this level there is minimum chance of a gold trader’s transaction getting closed. However, there are gold brokers who are not very straight and these brokers will set the stop out at 100 % and with this level the likelihood of the trader’s transaction getting closed or stopped out are very high. A trader should make sure they open an account with a broker setting the stop out at 20 %.
