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 xauusd are:

Standard Account
Mini Account
Micro Trade Account

The specific type of trading account a participant selects is contingent upon the quantum of capital available to that xauusd/gold trader for deployment.

Standard Gold Account

Gold transactions are standardized using units called contracts. The standard contract size for gold comprises 100 discrete units. Since XAUUSD pricing reflects dollars per ounce, these 100 units equate to one hundred ounces of gold. These 100 ounces constitute one standard gold contract.

For this reason, a trader trading one lot of gold will gain $100 when the price of one ounce of gold increases by $1, as one contract of gold represents 100 ounces of gold.

If a trader wants to trade gold in standard lots with this account, they will need to have at least $50,000 available to trade with.

Mini XAUUSD Account

XAUUSD is traded in lots, which are called contracts. The xauusd mini lot contains 10 units. Because gold is priced per ounce, these 10 units stand for 10 ounces of gold. These 10 ounces of xauusd create one xauusd mini 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 account, if someone wants to trade mini lots of xauusd, a gold trader needs to have at least $10,000 to trade with.

Micro XAUUSD Account

A micro lot in gold equals one unit. Since XAUUSD prices one ounce, that unit is one ounce. It forms the base for micro gold contracts.

When gold rises $1 per ounce, a 1 micro lot trader gains $1. One gold contract equals 1 ounce.

For this account, trade micro lots in XAUUSD. A gold trader needs at least $1,000 in capital.

Selecting a XAUUSD Account

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

Practice Demo Trading Accounts

One effective methodology for a trader to ascertain the most suitable account type involves establishing a demo trading account, which facilitates the acquisition of greater familiarity with the operational procedures of gold trading.

When starting a demo account, pick your practice balance. Options include $10,000 or $50,000 to simulate real trading.

This method allows a trader to practice handling the xauusd/gold market using capital equivalent to the intended deposit amount for their live gold account. Within this practice trading account, an xauusd trader can also rehearse trading with standard contract sizes or micro contracts, depending on the contract type they plan to utilize upon establishing their actual/live 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 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 will be using.

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