Trade Gold Trading

Market Tutorial

Learning to trade the xauusd market will be much easier for beginner traders that starts by learning basics as they will have the basic ideas and concepts that are required to make it easy to understand what is xauusd trading & how to carry out xauusd trading.

What's XAUUSD Trading?

Now with the advancement in technology and the growth of the internet xauusd trading & the coming up of retail brokers has now become accessible to retail traders and anyone with a computer that is connected to the internet can start trading gold. The minimum starting amount required to begin trading is $100 dollars making gold trading affordable to many retail traders & investors.

The retail investor can now get access to the online market through these retail xauusd trading brokers. All a trader requires is to open an account with a broker and the Gold trader can then trade with their gold broker from anywhere in the world.

The retail brokers also provide traders with the capital required to trade in the xauusd market using gold trading leverage. Gold trading is traded in standard gold lots or one standard gold trading contract. Because many traders can not afford this, the brokers provide capital to traders and the Gold traders can borrow the capital from their online brokers & trade xauusd with it using the trading leverage ratio. For example illustration a broker provides leverage option of 100:1 meaning that a trader can borrow upto 100 times of the capital they have. Therefore, if a trader has capital of $1,000 dollars in their trading account using leverage 100:1, they can borrow up to 100 times their capital, this will be $1,000 dollars multiplied by 100, which is equal to $100,000 which the Gold trader will now control and the Gold trader can transact with this amount in the market. This means that a trader with only $1,000 dollars can now trade with $100,000 leveraged amount in Gold after using leverage of 100:1 from their gold trading online broker.

Trading Leverage which means that a trader has access to borrowed capital and can trade with this borrowed capital provided by their broker is what makes gold trading accessible to may retail xauusd traders. This gold leverage is what has contributed to the growth and popularity of trading. In gold trading 95% of all transactions is carried out by retail xauusd traders.

XAUUSD Market Moves

In xauusd trading, trading prices are always moving up or down & it is this movement that traders want to trade so as to try and make a profit from these gold trading price moves. The daily xauusd gold trading price fluctuation is very small and mostly these moves are less than 1 % in value. This is why brokers provide gold trading leverage & why most traders use leverage so that they can multiply the profits from these market moves. Gold is traded in big lots of many units so as to increase the profits per transaction - However, this can also increase losses as well if the trade transactions go against a gold trader's position.

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