Those who trade the Forex market understand that global events can greatly influence how the Forex market moves. When there is turmoil in the world there is usually a flight to buy gold. For many it is not always practical to be holding gold bars and having to exchange the gold bars as the value of gold fluctuates. An alternative to this is trading spot gold.
Spot gold is not unlike many of the currency pairs that you may be familiar with. It is usually quoted against the US dollar and the symbol is XAU. The contract size for spot gold is 100 oz.
The PIP size for spot gold trading is 0.10. The PIP value for one lot would equal $10.
As with Forex the spot gold broker should offer streaming prices from banks with deep liquidity.
As always it is important to select a Forex broker that is in a regulated jurisdiction. Spot Gold trading offers many trading opportunities when there is turmoil and the markets become volatile.
Traders can also use instruments like binary options and CFDs on the spot gold market.
To learn more please visit www.clmforex.com
Disclaimer: Trading of foreign exchange contracts, contracts for difference, derivatives and other investment products which are leveraged, can carry a high level of risk. These products may not be suitable for all investors. It is possible to lose more than your initial investment. All funds committed should be risk capital. Past performance is not necessarily indicative of future results. A Product Disclosure Statement (PDS) is available from the company website. Please read and consider the PDS before making any decision to trade Core Liquidity Markets’ products. The risks must be understood prior to trading. Core Liquidity Markets refers to Core Liquidity Markets Pty Ltd. Core Liquidity Markets is an Australian company which is registered with ASIC, ACN 164 994 049. Core Liquidity Markets is an authorized representative of Direct FX Trading Pty Ltd (AFSL) Number 305539, which is the authorizing Licensee and Principal.
