What makes spot metal trading attractive?
They move fast, and the pip value is much higher than Forex pairs.
Do you mean industrial metals, or gold/silver/platinum/palladium?
They may be attractive but they’re expensive.
I only ask because, apart from my usual concentration on price of gold and silver and their ratio one to’th’other, I have seen recommendations recently to get into copper, nickel, uranium and aluminum (or aluminium for the Europeans). So when someone says “spot metals” I need to know which. Not sure they are expensive if you are trading them. Gold was said to “plunge” a couple of days ago, and that was a 4.5% move. That’s the same as GBPUSD moving from $1.40 to $1.337 or 630 pips. Big, but not huge.
Anyway, if I were to trade gold or silver (and I should be doing because we hold bullion) I’d be looking at quite large stop losses. Haven’t done the math yet but the objective would be to hedge the long term holding.
Spot metal trading has a number of other advantages, including the ability to tailor trading tactics to your risk tolerance. Agreements between the two sides are competitive, as a big majority of buyers start a price war and give the best pricing to both buyers and sellers. It’s a device that’s precise, clear, and well-controlled. There is no need to be concerned about illicit transactions. Buyers can anticipate standard quality because the goods are maintained and stocked in good shape. Transactions can be completed more quickly thanks to technological advancements.
Oh I meant XAU/USD specifically. I don’t have enough spare coins to buy that. Mining stocks are more within my range.
much more profitable than forex.
Very volatile. Which opens chances for more profits.