Hi everyone,
This is nadeem here. I am desperately looking for guidance about forex trading on gold. I am talking about the very basics as i don’t know anything about forex trading though i have been doing binary options on gold for the last two months with more and more learning everyday.
What i want to know about forex trading is what is call and what is put, when to invest and how to invest, and all those terms.
I need to know about the very basics.
Can anyone guide me in this regard? I’ll highly appreciate any help whatsoever.
Thanks very much.
It seems like you should start from the beginning. Baby pips is a good place to start learning, just I will recommend you to avoid trading the gold on the beginning and stick to the currency pairs.
Hi Nadeem, Gold is really a CFD product and has more in common with Gold futures in the underlying futures market. Gold Futures Contract Specs - CME Group
Gold moves $100 a point at 100 Oz contract lots, so a 30pt (3000 pips) move in Gold is $3000. Gold can move on average 40-50pts per day and that is a big move. As long as you have enough capital gold is a good instrument to trade as a CFD or future, there is no really difference trading either except for margin requirements and contract size.
That is all there is to Gold. As a CFD you can take 10 Oz even 1 Oz positions but Gold offers a better ATR than most currency pairs that only trade maximum 100 pips a day so that is $1000 a day and $100 on mini lots. If you start with Gold assume you have $5000 at least and your natural direction is futures rather than currency.
Gold is much more volatile than currencies and like Silver the widow maker, it can whipsaw and take stops. In most cases there will be some degree of tears. So I suggest you trade it exclusively if you are successful move on to futures, you won’t find spot FX attractive anymore.
There are no puts and calls, those terms reserved for option contacts. Call is simply to call the asset from the pit and put is to push the asset away from you. Binary options are simply nonsense nothing like proper option contracts. Options are usually hedges but there have been some good option traders who have made money exclusively trading options but it is very difficult.
Good luck!
[QUOTE=“emeraldorc;661825”]Hi Nadeem, Gold is really a CFD product and has more in common with Gold futures in the underlying futures market. http://www.cmegroup.com/trading/metals/precious/gold_contract_specifications.html Gold moves $100 a point at 100 Oz contract lots, so a 30pt (3000 pips) move in Gold is $3000. Gold can move on average 40-50pts per day and that is a big move. As long as you have enough capital gold is a good instrument to trade as a CFD or future, there is no really difference trading either except for margin requirements and contract size. That is all there is to Gold. As a CFD you can take 10 Oz even 1 Oz positions but Gold offers a
gold moves alot more than 50-40 points per day that’s the only pair I trade it moves on average 100 -200 pips per day, theres been days where gold has moved 1000 pips, at least for my broker 1 cent = to 1 pip so $100 move like your saying would be = to 100 points I’ve never seen gold move $3000 oz at least not in my 3 years, kinda confused on what you where sayying there?
Gold prices has been on a negative trend due to strong US economy data.
Misinterpretation… Never mind… Simple e.g. $1200 per Oz, I buy 100 Oz = 100 x 1200 = $120,000 gold moves to 1240 per Oz by days close = $124,000. I make 124,000 -120,000 = $4000.
Your description of point and mine is different, a point for me is still $1 move. At least that is what we call it in the commodity world. MT4 has a different idea on the point but I am more traditional. Yes Gold can move a lot on the day but I took a general example, won’t get lost in the detail.