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Posted on May 30, 2019 at 01:05 PM
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The Supreme Strategy to Trading Gold in Forex

Gold ranges an average of 1000 pips daily! What If I told you, it won't take that much to trade gold and show you a safe way to get started? Hop on and let's explore how to trade gold as a Nigerian Forex Trader.

Gold is one of the most sort after metal in the market and this is because it is a very volatile instruments in the Forex market.

So if your analysis is top notch, you may be in for some profit trading Gold!

If you're lookiyng to explore gold trading, here are a few things that you should know:

Major Highlights.

Gold is domiciled in certain stock exchange markets, so just like the regular currency pairs, it is always available for trading except on major Public holidays when major stock exchanges have to shut down.

Gold is highly volatile and responds to Dollar index, such that when dollar index is falling, gold rises and when dollar index rises gold should fall. On an average Gold ranges 1000 pips daily thus making it a very valuable and profitable metal to trade.

You can either trade gold as Gold spot or XAU/USD in Forex, it largely depends on your equity and how much risk you are willing to take.

Because InstaForex is our broker, this guide will solely inform you based on the trading conditions of InstaForex and it may/may not cost you more to trade gold with any other brokers.

When trading Gold spot in instaForex, take note that it has a spread of 60 pips While XAU/USD does times 5 of the monetary value of Gold spot. I e the same pips that would cost you $60 in Gold spot will cost you $300 in XAU/USD on a standard lot size. (1 InstaForex lot). That is where a gold spot makes you $1/lot, Xau/Usd will make you $5/lot. 

For Example: Consider that we take the same trade on gold spot and Xau/Usd with our entry price as 1234.90 while our TP as 1230.90.

The spread is 60 pips, so for 1.00 standard lot size, upon placing the Trade, we will be recording $60 while on a XAU/USD for the same trade, we would be recording $300.

So if our Gold spot trade posts 400pips profit, we make $400, while for the same 400 pips our XAU/USD will be recording $2,000 ($400 x 5). Jackpot!

So what exactly does it take to trade Gold?

Equity: Unlike the physical market, You don’t need a billion dollars to trade gold in Forex,with an equity starting from $100 amplified with a 1:1000 leverage you can trade gold. However, because of the large spread involved versus the capital invested, you may have to stick with 0.01 lot size/volume per trade.

Trading Experience: You must have a good knowledge of technical analysis and a grasp of what fundamentals will affect gold.

Risk: Which of these 2 match up to your risk appetite? Gold spot or XAU/USD? Make up you mind.

Why should you stick to 0.01 Lot/Volume?

You should stick to this lot, because its better to be safe than sorry! Gold is extremely volatile and the spread is 60! You don’t want the spread to eat in more than 50% of your equity already. That’s a crazy way to trade.

Don’t forget that draw downs are expected in a trade, by draw down I means the little reversals below your entry price before they eventually go into profit. (Regardless of your experience, expertise or pair you need to be prepared for this on every trade).

So in summary: here is what to consider when getting started with trading Gold in Forex.

  1. Gold is extremely volatile.
  2. You don’t need a billion dollar, you can start with $100 and 1:1000 leverage.
  3. Stick to the barest lot size/volume.

Now you that you know, you should keep your eyes on this instrument from today. If you don’t have up to $100 in your account. You can top up your account by clicking here 

Something big is cooking, do you want a share? What if we create a weekly gold signal group, where we post possible entries and exit points at-least once in a week and all you have to do is make a deposit to get in, would you like to join? (Let me know your choice and your suggested deposit for entry in the comment section below).

I’ll look forward to hearing from you.

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Previous Comments

      Jun 06, 2019 at 08:43 AM

    Gold group

    View Replies Reply
      Jun 06, 2019 at 05:50 PM

    This is a good development! I'm in, please keep me posted. Thanks.

    View Replies Reply
      Jun 06, 2019 at 05:59 PM

    Yes I would love to join with 30dolls

    View Replies Reply
      Jun 06, 2019 at 06:00 PM


    View Replies Reply
      Jun 06, 2019 at 06:00 PM

    I am ready with $100

    View Replies Reply
      Jun 06, 2019 at 06:13 PM

    This is a welcome development. I will love to be part of this group.

    View Replies Reply
      Jun 06, 2019 at 07:01 PM

    I love to trade it

    View Replies Reply
      Jun 06, 2019 at 09:18 PM

    I’m new to Forex and I’m learning fast. I want in. $200 deposit.

    View Replies Reply
      Jun 07, 2019 at 07:23 AM

    I love this and I will like to know more. I am interested in the weekly signal group. Thanks

    View Replies Reply
      Jun 08, 2019 at 06:29 AM

    Yes i would like to join the signal group for gold thanks. By the way ur article was super informative.

    View Replies Reply
      Jun 08, 2019 at 02:34 PM

    This is an eye opener for we newbie, I'll like to join the signal channel please" Gold group". Thanks in anticipation.

    View Replies Reply
      Jun 08, 2019 at 10:21 PM

    I would like to join sir/ma

    View Replies Reply
      Jun 09, 2019 at 01:42 AM

    I am interested in the said gold trading and investment. I may start with $50

    View Replies Reply
      Jun 09, 2019 at 01:46 AM

    I am interested. $50

    View Replies Reply
      Jun 10, 2019 at 08:02 AM

    Please join me in the gold signal group. Thanks

    View Replies Reply
      Jun 11, 2019 at 08:20 AM

    Great....I will be happy to see myself in that group.Thanks.

    View Replies Reply
      Jun 11, 2019 at 03:23 PM

    I'm game with the gold analysis and ready to fund my account with $100

    View Replies Reply
      Jun 11, 2019 at 04:54 PM

    I AM VERY MUCH INTERESTED!!!!!!!!!!!!!1

    View Replies Reply

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