Learning to trade gold doesn't take long! Check out the tips here

Learn gold trading - Today, gold is used as a long-term investment tool, jewelry, even in the world of medicine and electronics. However, gold has also long been used as a currency.

So what makes the precious metal a special item compared to silver or other metals? Gold has its own appeal, such as having a charming color and shine.

Gold is rare enough to prevent producers from flooding the market with it and depreciating its value, but abundant enough to maintain liquidity in the market. Humans also seem to have an emotional connection to gold, so it is still an important item to use today.

In this article, GIC Jurnal will share tips on how to learn gold trading for beginners. Check out the information below.

What is Gold Trading?

Gold is one of the oldest and most trusted forms of currency in the world. For gold traders, the precious metal has a “safe haven” appeal, making it a popular investment.

There are two main ways to invest in gold. The first way is to buy gold in physical form, and the second way is to take advantage of price fluctuations in the commodity trading market and trade it in derivatives related to gold, such as futures, CFDs etc. Typically, the two most popular gold derivatives used are gold CFDs and futures.

How Does the Gold Market Work?

Forex gold trading is usually traded over the counter (OTC) and on exchanges. London is the center of the global market for OTC, where market participants transact directly with each other. The gold market has a high degree of flexibility, so the counterparty risk is still higher.

Gold investing and trading are two different ways to take a position on the future price movements of the gold market. When you invest in gold, you take ownership of the asset up front and profit if the price of the metal rises.

When you trade gold, you are taking a position on whether the price will rise or fall. This means that you will not take ownership of the asset itself.

How to Trade Gold Online and Offline

There are several types of gold assets available for you to trade or invest in, depending on your interests based on physical or non-physical assets. Below are the types of gold assets:

• Gold bar

Physical gold is available in the form of coins and bars, commonly used as a store of value for both individual investors and banks. However, expensive storage requirements and insurance costs often deter investors from buying the precious metal directly.

• Gold spot

The spot price of gold is the usual amount to buy on the spot. Usually the price calculated is the price of one troy ounce of gold. Spot gold trading is a very popular way to get gold bullion without having to take ownership of the precious metal.

• Gold futures

Futures contracts allow you to exchange gold at a fixed price on a specified date in the future. You are obligated to uphold your end of the deal, whether through physical settlement or cash. The standardization of futures contracts is based on quality and quantity calculations so that only the price is driven by market forces.

• Gold option

The way options work is almost the same as futures contracts, but the difference is that gold options are not required to execute trades when buying. Options give you the right to buy gold physically or in the future at a certain price and for a certain date.

A call option will give the holder the right to buy the precious metal, while a put option will give the holder the right to sell the gold.

• Gold ETFs (Exchange Traded Funds)

Exchange-traded funds (ETFs) track the movement of publicly traded gold mining, refining and producing companies. Investing and trading in ETFs gives you much broader exposure than you would otherwise get.

This method is very popular among traders because it can be used as a portfolio. ETFs are passive investments, which replicate market returns rather than trying to beat them.

• Gold stocks

Investing or trading in stocks can be a great way to gain indirect exposure to gold. You can gain exposure to every element of the gold industry, from mining, production, to financing and sales.

It is important to note that gold stocks do not always move in the same way as bullion, as there will be many other factors that drive stock prices.

Learn Gold Trading For Beginners

For beginner traders who want to buy or sell gold as a regular asset in their portfolio, different gold trading strategies and assets will certainly be needed. Below are the basic steps that need to be considered to start gold trading for beginners.

• Find a suitable broker: use a trusted broker as a platform where you trade gold. Like GICTrade which offers various trading instruments (currencies, metals, market makers, etc.).
• Choose which direction you want to trade gold: Before starting to trade gold, it is important for you to understand the differences between the two gold products offered as CFDs.
• Test your trading strategy first: Beginners may prefer to do this at the beginning of a demo account. This step is important for you because it will give you insight into the strategy you are using, whether it is suitable or not.
• Open your first gold trade: Once you are ready to trade, then install the meta trader platform. There you can find the product “XAU/USD” or XAU with other currency pairs. Good luck!

Want to Start Trading Gold But Hesitant Because It's Expensive? Join the Gold Sharing Program Now!

Arrange your plan to be able to get 24k gold pieces right now! The requirement is of course that you can start by trading at GICTrade. To be able to get 0.05 gram gold pieces, Trading can be started from 1 lot with a minimum open position time of two minutes after you deposit 350GICT. The gold prize will be sent directly to you within ± 7 working days from the date of deposit. This period is valid from January 17 - March 31, 2023.

There's still lots of other fun that you can get in the Gold Sharing GIC #HapurAnxietyWithGold.