How to invest in gold?


A safe haven is called by investors, traders and financial experts. When markets fall, prices fall and global markets start to suffer from turbulence and volatility, everyone turns to it to protect themselves from losses as it is a hedging instrument acts.

Thanks to Avatrade, you can trade today’s best metals CFDs in one trading platform.


With AvaTrade you can easily trade gold because we provide you with all the means of safety and show you everything related to the world economy and stock markets, as well as all the information to help you make the right decision at the right time. and we also offer you a good 24-hour support service.


gold trading

Gold is traded in US dollars on the Chicago Mercantile Exchange and gold is measured in troy ounces and this unit of measurement converts one troy ounce to 31.1034768 grams, this unit of measurement is known to have been used to measure gold since medieval times.


The Chicago Mercantile Exchange allows you to trade gold futures contracts and sometimes buying these assets directly from the Chicago Stock Exchange will involve the mandatory purchase, custody and insurance of the underlying assets if you own the contract, after it expires. and if the trader doesn’t want to, they can buy or sell CFDs in gold and take advantage of currency fluctuations without having to buy the underlying asset.


CFDs can also be opened in the opposite direction of the current metal price, allowing traders to benefit from yellow metal price fluctuations and risk without buying the underlying asset.


How is gold traded in global stock markets?

Gold has been known as a precious or “precious metal” for millennia due to its high commercial value, and gold is considered to be the only metal, rather than the only commodity, that has been able to maintain its value throughout history at all times and in all situations, whether the global economic conditions are stable or volatile.


If you want to trade gold, the first thing you should know is that there are several trading strategies, each has its own potential profits and potential risks, and the choice is yours, each trader chooses the best and most suitable trading strategy from him, and in In turn, we will show you different gold trading strategies and you choose the trading strategy that suits you best among them.


The first strategy “Gold CFDs”

The CFD strategy allows you to open a trade without having to buy the underlying asset, which allows you to open a buy or sell trade on the instrument and speculate on its price movement, calculating the expected profits and losses according to the current one Know the price movement of the instrument according to its over-the-counter trading.


As per this strategy, by trading based on the current price rather than the future price, the trader can see high liquidity and availability.


The advantages of trading CFD options on gold is that when the trader opens his trade, he pays less than the CFDs on the metal itself, since he is making a CFD trade in a direction opposite to the contract and not in the direction of gold opened, which means that the investor trades the instrument at the lowest price.


However, the risks of this strategy are that the wide volatility of CFD options poses huge risks, and yet there are many other factors that lead to high volatility and disruption in the value of CFD options.


The second strategy is “Exchange Traded Funds”.

In this strategy, the ETF directly tracks the value of the underlying asset, since a contract for difference on the gold ETF tracks the price of the yellow metal daily, allowing traders to make buy and sell transactions at a different price from the price of the underlying ETF.


Trading CFDs on gold allows traders to make good profits from fluctuations in the price of gold without having to buy and hold the underlying asset, and it also allows them to sell gold when they expect its price to fall in the markets .


For example, if the trader who opens buy trades expects that the price of gold will rise in the coming days, and if his prediction is correctg, he will make strong profits on the price difference between the opening price and the higher closing price of the trade he has made and vice versa, if the closing price is lower than the buying price, you will suffer losses equal to the price difference between the opening and the closing.

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