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Although gold trading doesn’t take place in the Forex market, but rather in the commodity trading market, gold trading procedures are similar to FX trading procedures and therefore there are many traders who add online gold trading to their financial trading activities. This is why eToro has added gold as well as silver and oil commodities as instruments available for trading through our online trading platform and network. Trading gold in addition to currency can diversify your portfolio and add another dimension to your market outlook, whether you are investing or day trading, spot trading or futures trading
Of course to trade gold you don’t need to carry any gold bullion around. In fact, online gold trading is done in much the same manner as currency trading. If you have experience with currency futures trading, you should have an automatic familiarity with gold even if you have never traded it before, unlike trading stocks or stock options for example, which would take additional training. All you have to do is predict whether the price of gold will be going up or down against the USD, set your leverage, choose the amount of gold you want to buy or sell, and open the trade. To determine these parameters you can view live charts of gold prices and then perform technical analysis the same way you do for currencies. To monitor gold prices you can set alarm signals to go off when the price of gold hits a certain value. You can also check out how other traders feel about the gold market, and even copy their positions on gold, by going to the gold market page on eToro OpenBook, or searching for Gurus by instrument. The gold market also operates 24 hours a day, except on weekends, so you can easily fit it into your trading schedule.
There are several ways in which gold trading differs from foreign exchange trading. The gold market is a lot less volatile, and therefore scalping while trading gold is nearly impossible. Because gold is much more expensive in value, you will need to make larger investments with lower leverages (the range for gold trading is 1:5 – 1:25). However, this kind of large investment can make a huge difference to your portfolio since it will stabilize and hedge other, more volatile trades. Once you get the basics of gold trading, which shouldn’t take long, you can incorporate gold trading into your trading system, or even develop a new system specifically for trading gold. The best way to learn more gold trading strategy is to head to the eToro OpenBook and watch how the top traders incorporate gold into their portfolio.
Gold trading at eToro is commission free. To start trading gold with eToro simply head on to the WebTrader, log into your account, and look for gold in the live rates box.