XAUUSD Accounts - Types of XAUUSD Trade Accounts

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

Standard Account
Mini Account
Micro Trade Account

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

Standard Gold Account

Gold is transacted in lots known as contracts. The standard lot for gold is made up of 100 units. Because xauusd is measured in price per 1 ounce, then these 100 units represent a hundred ounces of gold. These 100 ounces of gold is what makes 1 standard 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 gold trader will require to have trading capital of at least $50,000 dollars.

Mini XAUUSD Account

XAUUSD is transacted in lots known as contracts. The mini lot for xauusd is made up of 10 units. Because gold is measured in price per one 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 gold trader will be required to have trading capital of at least $10,000 dollars.

Micro XAUUSD Account

The micro lot for gold is made up of 1 unit. Because xauusd is measured in price per 1 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 gold trader will be required to have trading capital of at least $1,000 dollars.

Selecting a XAUUSD Account

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

Practice Demo Trading Accounts

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

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

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 xauusd trader can also practice how to trade with standard contracts or micro contracts depending on the contracts which they will be trading with once they open their real account.

Demo practice trade account is a great way to get started and learn the specifics of the xauusd gold 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'll be using.

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