A guide to gold trading

26 Feb 2024

Gold is one of the most widely traded raw materials around the world, along with crude oil trading, and certainly the most popular of the precious metals, for both its financial and cultural value.

Investing in gold in the UK is one of the most popular forms of trading. Gold belongs to the commodities market, along with other precious metals including silver and platinum, all of which you are able to trade with an Investiva account. The yellow metal comes in many forms, including gold bullion, gold coins and gold stocks in the share market.

Introduction to Gold Trading:

Gold is a widely traded commodity with both financial and cultural significance. It belongs to the commodities market, and traders often use it as a "safe haven" during times of economic instability.

Factors Influencing Gold Prices:

The value of gold can fluctuate based on political, social, and economic conditions. Gold is considered a hedge, and its demand may rise during unstable periods, making it attractive to investors.

Gold Trading Online:

As a gold trader, you have various options, including spot trading, forward contracts, spread betting, and CFD trading. Investiva offers spread betting and CFD trading on gold, providing flexibility for traders.

Gold Spread Betting:

Popular for its tax-free* nature.
Allows traders to speculate on price movements without owning the physical asset.
Profits or losses depend on the market's direction.

Gold CFDs:

Leveraged products with a small deposit requirement.
Traders don't own the underlying asset but speculate on price differences.
Potential for profits and losses; caution is advised.

How to Trade Gold:

1. Open an Account:

Choose between a live or demo account with investiva.
A demo account helps practice strategies without risking real money.

2. Deposit Funds:

Since spread betting and CFDs are leveraged, deposit a small percentage of the overall trade value.
Profits and losses are based on the overall position value.

3. Research Best Trading Times:

Political and economic events can impact gold prices.
Stay informed through news and analysis sections to make informed decisions.

4. Monitor Price Movements:

Use technical indicators to stay updated on gold price trends.
Regularly check for market updates and adjust strategies accordingly.

5. Implement Risk Management:

Consider using a stop-loss order to minimize potential losses.
Consult the money and risk management guide for appropriate measures.

Trade Gold Through Commodity Indices:

Spread bet or trade CFDs on baskets of commodities, including gold, silver, platinum, and palladium.
Diversify your portfolio by investing in multiple commodities within a single position.
The Precious Metal Index combines gold and silver as the primary components.

Gold Trading Platform:

Investiva provides a user-friendly trading platform, Next Generation, for trading shares, ETFs, and physical gold commodities.
Customizable price charts offer a clear representation of data.

Conclusion:

Trading gold involves understanding its value drivers and choosing appropriate trading instruments. Leverage can amplify both profits and losses, so caution is crucial.Regularly update your trading knowledge and strategy for sustained success.