Gold Metal Online Trading - XAUUSD Trading Symbol
Gold metal is popularly transacted in the online financial trading markets. Because XAUUSD is one of the precious metals its price is determined & quoted in terms of US Dollars at any one time. Anyone can then buy or sell xauusd either physically in the form of gold bars or using the more popular method - selling and buying xauusd online in the format of lots.
When it comes to buying and selling Gold metal online - a xauusd trader has to look for an online XAUUSD Broker, the gold broker will then provide you access to trading gold online. The gold that will be traded will be traded as a contract; once a trader buys a contract for Gold, the online trader then will make a profit or loss depending on the direction that the price of Gold will move in. If a trader buys a contract of XAUUSD and the prices of Gold move up then the online3 trader will have made profit from the price difference and they can close-out their buy trade of the Gold contract and book their profits. However, if a trader buys one contract of XAUUSD & the market price then moves down then the trader will accrue a loss once they close out their open contract at a lower price.
XAUUSD contracts/lots online are transacted in the same way as shares/stocks, investors will make money when the value of their shares or stocks moves up and accrue a loss if the price of their share or stocks moves downward.
Gold Contracts
When it comes to online XAUUSD metal trading, gold is traded as a contract; one contract of Gold is made up of 100 ounces. Therefore when a trader is trading xauusd online then they'll be buying/selling a contract and lot that is equal to 1 hundred0 ounces of XAUUSD.
The prices of XAUUSD will be quoted by the online Gold trading broker & a gold trader can buy or sell xauusd contracts at the ruling quoted market price. In online trading gold trading, gold is traded & represented using the trading format of - XAU
Because XAUUSD is quoted against the US Dollar, the trading symbol will be Gold; meaning the price of gold quoted against the US Dollar.
Price of Gold - XAUUSD Price Quotes
The Price of Gold is quoted as show above using the Bid and Ask Price
- Bid is the price at which you buy
- Sell is the price at which you sell
The trading symbol of Gold is XAUUSD, but in the above example it is just written as XAUUSD.
The current price quote of XAUUSD is 1267.11
This means that a xauusd trader who wants to buy 1 contract of Gold would buy at the price of 1267.11
XAUUSD is quoted using two decimal digits in the case above the last two decimal digits are .11
The last decimal point is used to calculate the profit & losses of trades, the last point is known as a a pip or one point.
When trading Gold one pip represents a movement of $1 dollars
If the price were to move up from 1267.00 to 1268.00 this would represent a price move of one dollar, but because gold is transacted in contracts/lots of 100 ounces, this $1 dollar move would be multiplied by 100, the contract size, thenceforth a move from 1267.00 to 1268.00 would give the online trader a profit of $100 dollars.
Because a move from 1267.00 to 1268.00 represents 100 decimal points moves, this means each decimal point represents a profit equivalent to $1 per one pip (0.01 price move).
Opening a Gold Chart
To open a XAUUSD trading chart, a trader can open this chart from the gold trading platform, MetaTrader 4 platform from the "File" menu as shown below. Then choose "New Chart" option.
Opening XAUUSD Chart on MetaTrader 4 Software
A trader can then choose Gold Metal or XAUUSD Metal, from the "Spot Metals" option illustrated below after clicking New Chart option.
Opening XAUUSD Trading Chart in MetaTrader 4 Platform Software
More Tutorials & Lessons:
- How to Trade Fib Pullback vs Fibo Extension
- How Can You Trade an Upward XAUUSD Trend?
- Bollinger Band Technical Gold Indicator Analysis
- XAUUSD Platform MT5 Placing Arrows in XAU/USD Charts in MetaTrader 5 Platform
- What's the Interpretation of Gold Charts?
- Customizing & Arranging Charts Tool Bars in MetaTrader 4 XAU USD Trade Software
