What are CFDs
- Commodities trading
In today’s markets it is possible to make profits from trading commodities, such as gold without having to physically own the metal. Gold trading via CFD’s is based on opening a temporary order to buy or sell an exact amount of gold. The profit or loss is determined by the change in the price of the gold metal during the contract’s duration.
Start trading Gold with Friedberg Direct, and enjoy the benefits of trading with a regulated Canadian broker!
At Friedberg Direct you can trade gold online, easily and effortlessly. Try gold trading with a leading regulated broker and enjoy the following benefits:
- Trade gold with competitive spreads
- Make larger trades with leverage
- Trade on the powerful MetaTrader 4 and MetaTrader 5 platforms
- We allow trading forex and commodities on the same platform, so you can hedge your risks
- Trade whichever way you think the market will go – long or short
- Get 24/5 Technical Support
Gold Trading History
In prehistoric times gold was one of the first metals to be mined, mainly because of the form in which it was found, being nuggets or small pieces at the bottom of a river. It became so high in demand that Egyptians started mining it in 2000 BC. Throughout history, many civilizations chose gold as a reliable and universal exchange medium (money) for trading goods.
The gold standard – a monetary system in which a nation’s currency represents its gold reserves – came to exist due to the recognition of gold as an actual currency. It was abandoned by the United Kingdom and the whole British Empire at the onset of World War I. Most other countries also abandoned it during the 20th century.
How to trade gold
- Open a trading account at Friedberg Direct
- Fund your account to have a sufficient trading budget
- Choose the desired position size
- Open a Long (buy) or Short (sell) position according to your analysis
Start trading Gold with Friedberg Direct, and enjoy the benefits of trading with aregulated Canadian broker!
Different forms of gold available to traders and investors:
Physical metal (bullions or coins) – A bullion is a grouping or bulk of precious metal, measured in the form of a bar and weight.
Gold certificates – These are very similar to the first paper bank notes. First introduced in the 17th century, these gold certificates acted as proof of gold ownership and were transferred as cash payments. Today they are still issued by certain banks and represent a quantity of gold bullion or coins for its owner.
Gold futures – These are contract agreements for the delivery of gold in the future at a set price. Investors use this to manage price risk. Since gold future contracts are traded at centralized exchanges, these contracts offer more leverage and flexibility than trading the physical commodities themselves.
Contracts for difference – suitable for traders but not investors, this derivative allows profiting from the changes in gold prices during the contract duration, without either a right or obligation to purchase the actual underlying asset. The nature of CFDs allows shorting gold and trading it on margin.
- MT4 Symbol – GOLD
- Exchange – NYMEX
- Trading Hours – 23:00 – 21:59
- Increment: 0.01
- Minimum Trade Size: 1 ounce
Why Trade Gold with Friedberg Direct
You can join Friedberg Direct today for as little as and start trading gold and other precious metals.
You will get access to a range of educational tools, trading advantages and benefits that are exclusive to Friedberg Direct clients.
We offer a range of platforms suitable for all level traders. You are guaranteed to find the trading environment that suits your style.
Get started in gold trading with Friedberg Direct and enjoy the benefits of trading with a Canadian regulated broker!
Gold Trading Online
Gold trading with Friedberg Direct is easy to understand, especially if you already have some experience of the forex market. Gold units are measured in Troy Ounces against a currency – usually the dollar – in a similar way to a Forex currency pair.
Gold Trading Influences and Gold Trading Strategy
Several distinct factors come into play when analysing the movement of Gold price:
- Supply and demand – Most of the global demand comes from jewellery production and manufacturing (50%), and investment purposes (40%). Increased demand with low supply can mean a higher price; on the opposite end, an oversupply with weak demand can drive prices lower.
- Market sentiment – Political uncertainty and/or instability contributes to global growth uncertainty and does help in the rising prices of gold.
- Market volatility – Gold has often been used as a safe haven investment when markets are unpredictable.
- Currency movements – The US dollar is a strong influencer. When the dollar falls, commodity prices around the world increase. The US dollar and gold have an inverse relationship.
Overall if you are looking to an alternative investment arena or a hedge, which is a reduced risk of price movements in any asset, then gold might be the right asset for you.
Please note that trading in this market involves risk like any other.
Here are a few tips for trading gold:
- Gold is compared to the yen since both assets fall into the category of “safe haven assets”. They tend to move in the same direction. Often, you can check your trade set ups by comparing the two.
- Focus on the price action and keep in mind that commodities can move more than currencies.
- The most popular Gold exchange rate is the XAU to USD rate. XAU is the trading terminal’s code for gold.
- Don’t forget to check out the CFD Rollover dates to know when the current contracts expire.
Are you ready to start trading gold today? Start trading the gold market with Friedberg Direct and enjoy competitive spreads and leverage as well as the benefits of trading with a Canadian regulated broker!