Account Explanation

2 Types of Accounts

In the recent years retail has grown hugely in popularity & the demand for various different types of trading accounts has grown. There are many different account types available to any trader who wants to invest in the online market - Gold Account Explanation.

The Gold market is a highly leveraged market for speculating on the price fluctuations and valuations. Traders can purchase large amounts of trading units using leverage - Gold Leverage is what makes gold trading attractive to many online traders - with leverage a trader can make more profits or losses because they use less of their capital & borrow the rest.

There are various types of accounts available to help investors better manage their account capital as well as their trades.

How a Live Account Looks Like

Accounts Types Examples Explained - Trading Account Types Explained

It is henceforth important that the gold traders consider what they want to get out of their trade, before deciding on the trading account type to open.

Below is a comparison of the two types of accounts commonly used to trade gold. The account types review below explains the different features of each of the types of accounts.

1. Standard Accounts Explained

Gold Account Explanation - Standard Account. A Standard Trading Account is denominated in US Dollars and gold trades are placed using standard lots. One lot also is referred to as one contract. Minimum opening equity - at-least least $10,000 dollars.

1 lot refers to the minimum position size of a single transaction. This gold account option is the most suitable for traders with enough capital to invest in xauusd - this gold account option requires $10,000 & $50,000 dollars as beginning capital, for this standard account the trader will not be undercapitalized & with good xauusd money management rules and gold money management guide-lines, this standard account option has the best chance for profitability because it is not undercapitalized. Under-capitalization is what makes most traders in gold trading not profitable.

It is not recommended to open a standard account unless you have a trading account balance of at between $10,000 dollars minimum & $50,000.

Professional Money Managers advice $50,000 minimum to open this standard account & only opening trade transactions with only 2% of the capital you have in your trading account. However, most brokers still-will open this standard account for you if you as a trader have more than $10,000 dollars.

With gold leverage of 100:1, you'll borrow from your broker (with leverage option of 100:1, your broker provides you $100 dollars for every $1 dollar that you have in your account, henceforth if you as a trader have $1,000 dollars, the broker will give you $100 dollars of leverage for each $1 dollar you have, meaning after leverage you'll have $1,000*100=$100,000 which you as a trader can then use to trade gold).

Micro XAUUSD Accounts Types Described

Gold Account Explanation - Micro Account. Micro Accounts use lot sizes of only equivalent one hundredth that of a standard lot. These Micro accounts are often appropriate for traders without a lot of gold capital & sometimes can be opened with only a $5 minimum balance.

This Micro account option allows trader to place trades in micro lots. 1 gold trading micro lot is one-tenth of a trading mini lot and one hundredth of a trading standard lot.

This Micro account option is generally best suited for account equity balances that are between $1,000 and $5,000

In trading, one gold trading standard lot is the standard transaction minimum of instrument traded in the market. But many brokers offer fractions of this gold standard lot to enable more retail traders to access the market. Being able to offer gold trading micro lots reduces the minimum gold trade size thus giving the beginners and also those traders without a lot of gold capital to begin trading and get a feel of the market without investing a lot of gold capital.

There are learn trading online tutorials that one can read and study even before opening a live xauusd account, and to get extra practice in trading before opening a live account a beginner trader should open a practice Gold demo account with a broker - so as to practice placing gold trades before opening a live xauusd account & investing with real funds.

During the training period using the demo practice trade account, the beginner trader will learn the key factors needed to succeed in gold trading such as: gold education, gold equity management, plan & gold systems.

The types of strategies used and the skills required for any of these 2 accounts are essentially the same - those skills and strategies required for the Standard account or Micro account are the same the only difference to be adjusted are the gold equity management guidelines for each account type.

Study More Lessons & Courses:

Trade Gold Trading

Account Explanation

2 Types of Accounts

1. Standard Accounts Explained

Micro XAUUSD Accounts Types Described