Buying & Selling XAUUSD - Going Long or Going Short

In trading Gold online, traders can make profits by buying XAUUSD contracts or selling Gold contracts depending on the direction XAUUSD prices. If xauusd prices are moving upwards then a gold trader will buy Gold so that to make a profit. If prices are moving down then a xauusd trader will sell XAUUSD so as to earn a profit.

The prices of Gold at any particular moment are either moving upwards or downward in what is known as a trend. The trend is the general direction of the XAUUSD prices. Therefore, if the market price of xauusd is moving in a general upward direction, the market trend is upward and a gold trader should buy XAUUSD, if the market price of xauusd is moving in a general downward direction, the market trend is downward and a xauusd trader should sell XAUUSD.

Going Long or Going Short

Going Long - When a trader buys XAUUSD this is known as Going LongGoing Short - When a trader sells Gold this is known as Going Short

Long - long is another term used to refer to buying, when a trader goes long it means that they have bought the Gold metal that's heading upwards in a bullish trend. When the prices of Gold are moving in a general market trend that's upward then the market is said to be bullish.

Short - short is another term used to refer to selling, when a trader shorts XAUUSD, it means that they have sold the XAUUSD metal that's heading downward in a bearish trend. When the prices of XAUUSD are moving in an overall market trend that's downwards then the market is said to be bullish.

Buy/Long

Basically the term, "buy long" can be used refer to buying currencies in the online Gold trading exchange market. Buy long is used to transact when the prices of XAUUSD are predicted to appreciate in value compared to the USD, when the Gold metal, XAUUSD is bought then it's the same as holding value in Gold and instead of holding value in USD - Holding Value in Gold after selling USD.

If the price of XAUUSD is going up we buy, this is known as going long, therefore long is just another name for buy. When the Gold price trend is going up it's known as a bullish,this is when a buy order is placed. A bullish trend is identified by plotting an upward trend line on a XAUUSD chart. The example below shows long/buy signal.

Buy/Long - Gold Price Upwards Trending Market

Sell/Short

Basically the term, "sell short" can be used refer to selling currencies in the online Gold trading exchange market. Sell short is used to transact when the prices of Gold are predicted to depreciate in value compared to the USD, when the XAUUSD metal, XAUUSD is sold then it is the same as holding value in USD & instead of holding value in XAUUSD - Holding Value in USD after selling XAUUSD.

If the price of XAUUSD is going down we sell, this is known as going short, henceforth short is just another name for sell. When the Gold price trend is going down it is known as a bearish,this is when a sell order is placed. A bearish trend is identified by plotting a downward trend-line on a Gold chart. The example below illustrates short/sell trading signal.

Sell/Short - XAUUSD Price Downward Trending Market

XAUUSD Software

This is the trading platform that is provided by an broker to help traders make place their transactions of buying and selling Gold. Once you download and installs this software on your PC computer you then can start to trade XAUUSD online. All transactions are executed through this trading software. If you want to learn a software, MetaTrader 4 is a good platform to start with.

To set these buy & sell orders open MetaTrader 4, open a "chart ", right click the "chart ", select "New Order ", then choose the trade order either buy or sell as shown below. (Short-cut Keys - Press F9)

In the example below we have used the currency pair EURUSD, if you want to trade XAUUSD just change the symbol to Gold and you can then use the buttons shown below to either go long or go short when trading Gold metal.

Alternatively you can first open the XAUUSD chart & place a XAUUSD trading order directly from the chart.

Going Long & Going Short on the MetaTrader 4 Platform Software

Get More Courses and Lessons:

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