Gold Trading Accounts - Types of Gold Trading Accounts
With the growth in the popularity of gold trading the demand for different types of Gold trading accounts has also grown. The different account types available for trading gold are:
- Standard Account
- Mini Account
- Micro Account
The type of account that a trader will choose 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 gold is measured in price per ounce, then these 100 units represent 100 ounces of gold. These 100 ounces of gold is what makes one standard gold contract.
Therefore 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 gold a trader will require to have capital of at least $50,000.
Mini Gold Trading Account
Gold is traded in lots known as contracts. The mini lot for gold 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 gold is what makes one mini gold contract.
Therefore 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 gold a trader will require to have capital of at least $10,000.
Micro Gold Trading Account
The micro lot for gold is made up of 1 unit. Because gold is measured in price per ounce, then this 1 unit represent 1 ounce of gold. The 1 ounces of gold is what makes one micro gold contract.
Therefore 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 gold a trader will require to have capital of at least $1,000.
Choosing a Gold Trading Account
A trader will have to decide which type of gold 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 account that will help them to gain more knowledge about how gold trading works.
When opening the demo account, a trader can then select the amount of capital that they want to practice with, for example a trader can select the demo account balance of $10,000 or demo practice account balance of $50,000.
This way a trader can practice trading the gold market using the account balance that they plan to open a gold account with. With this 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 account is a great way to get started and learn the specifics of the gold trading market. It gives beginner traders a chance to learn and practice 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 that they will be using.
