Intro to Gold CFD Trading in Admiral Markets

Richardo: Nope you neither can get certificate or real gold, trading gold means you can set position buy and sell the gold you trade. The difference between one value and another is called a CFD (Contract for Difference). So basically you are just trading the value of gold. When you open a buy/long position in gold CFDs, you can only make a profit if the price of gold is higher than your entry position. The same is true vice versa. Very similar to forex trading, right? Forex gold pair is USD and gold currency is XAU. This is how you find the XAU/US currency pair when trading forex or metals.

Morrison :I'm sorry, but after re-reading the article, I still don't understand the gold CFD trading system at all. So, what's the point of trading gold if you can't get real gold and a gold certificate? In the meantime, you'll get nothing if you trade it in here. What is CFD anyway?

Richardo:

Basically, forex broker commodity trading consists only of CFDs. Consider stocks and precious metals. As mentioned in the article, CFDs themselves are contracts for difference. The work of CFD are like this : you bid buy and the other traders sell, or vice versa. When you bid, you want the price to go up, and a trader opening a sell position wants the price to go down. There are no assets involved, just the value of the price we trade. These differences are called Contracts for Difference or CFDs

example :
You and your friends like to trade on the price of gold, say $100. You bet higher odds and your friend bet lower. Market volatility pushed the gold price up to $90. $10 is the difference between $100 and $90. so in other word, you loss $10 and your Friends's profit is $10

Richardo: Dude, it's basically the same as forex. You can profit in two ways. Don't think too much about trading gold here. What is the purpose of this article which talks about why you should trade gold as the price of gold in the market is very volatile and you can make a profit on both long and short positions Gold also has a currency called XAU. Therefore, we can say that trading gold is the same as trading currency pairs. But with different trading condition, either spread, commission, and even leverage.

Richardo: The point of trading gold with the CFD System is that it is possible to make profits faster than investing in real gold.

First of all, gold really needs a place to hold. And most investors will borrow a safe to protect their gold from theft or even buy a more expensive safe. Whereas you are trading gold with CFDs, you don't need all that.

Second, CFDs allow trading with short positions in gold and long positions in gold, which makes it very possible for CFDs to profit from both bull and bear markets. Meanwhile, physical gold must increase in price to take profit.

Third, trading a standard gold CFD requires $1800 x 100 ounces = $180,000. Since it's huge, just 1 pip movement, you can make more money than you would make with small amount thanks to leverage.

For more details, read here : Why you need to trading gold CFD

John Hardy: Why the gold is safe haven? It is simple, because it has tested in the past. Many investors during crisis will switch the assets that they have into gold to prevent the assets values. Meanwhile, although diamond is very expensive; it is just a jewelry thing.

If you see from the history, the gold has been use as the currency, as your money, and your investments in the Roman empire. In other word, gold has been used for more than 2,000 years as the exchange rate.

If you want spesific reasonable reason, just see the gold's price. I mean during 1950; the gold's price only at $40,50 per ounce and nowadays after 83 years, the gold prices become $1850 per ounce. How many percentage rises from gold price? 4560%! So, it is obviously can increase by time to time.

Teddi:

I would like to answer, the price of gold between your country and the gold market is the same. The unit used in the gold chart you see uses Troy Ounces. If you convert to grams, 1 T Ounce = 31.2 grams. And the table above basically uses 1 ounce T.

so you just divided $1,826.80 by 31.2 gr. You will get $59/gram. The difference between bullion and bullion lies in the costs incurred in the production of bullion. It takes a cost, so bullion is priced higher than in the gold market. But since there is only $4 difference, I can say that bullion and gold are practically the same price

@Teddi: I totally get your confusion about the different units used in gold trading. In Indonesia, it's all about grams, right? You can easily invest in small amounts, like 1 gram or even 0.25 grams of gold. It's convenient and accessible for many people.

But when it comes to the global gold market and gold CFDs, things change a bit. They use troy ounces as the standard unit of measurement. So, the prices you see on those charts are based on troy ounces, not grams.

To convert the prices from troy ounces to grams, you can use the conversion factor: 1 troy ounce equals about 31.1035 grams. This will give you an idea of how much your gram-based investment would be equivalent to in the global gold market.

Now, here's the thing. The prices you see on those charts for gold CFDs reflect the current market value of gold worldwide. They consider factors like global demand, supply, and economic conditions. So, they may not align perfectly with the prices in the Indonesian gold market.

Unfortunately, you can't directly compare the Indonesian gold market with the international gold market because of the different units and local market factors. The charts you see are meant to represent the global gold market, not specifically the Indonesian market.

@Ryu Okada:  holding gold CFDs for years is possible, but usually these trades are more short-term. If you're looking to keep a position for a longer time, you might want to look into physical gold or related investments, which are better suited for long-term strategies.

Regardless of how long you're planning to hold a position, it's important to have a clear strategy in place. This can help you manage risk and make informed decisions about when to buy or sell. And don't forget to keep an eye on the news and events that can affect gold prices - this way, you can adjust your strategy as needed.

@Christina: hey there! I will explain what CFDs are. CFDs or contracts for difference are trading terms in which profits are made based on the value of assets. So instead of the actual asset, we get the value of the asset. What's special is that you can win based on value. Therefore, there is no need to sell the asset on the real market, for example gold. What makes CFDs even more special is that based on the value of the asset, you can place buy or sell orders to make a profit if the price goes up and sell or sell if the price goes down. Because you can infer the market by placing an order. under. Of course, if the price is the opposite, you will incur a loss.

If you own real gold, you should sell it when the price rises or the market becomes bullish. But with CFD you can profit either way!! 

Although Admirals is not the only broker known for its reliability, as there are still many other brokers that offer a comfortable trading experience, this broker is still considered a good option for trading and competing with other similar brokers.

If you're interested in comparing Admirals with other brokers, you can evaluate it based on various aspects, including features, trading costs, and the overall experience it provides for traders.

Trading Fees

Admiral Markets utilizes market execution as an ECN without a dealing desk, making it a hybrid model designed to benefit both traders and brokers. Additionally, they offer raw and commission-free accounts on both the MT4 and MT5 platforms.

The maximum leverage allowed for all accounts is 500:1, unless there are specific restrictions in place, such as for residents of European countries where the leverage limit is set at 30:1 according to CySEC regulations.

For all types of accounts offered, including zero accounts, traders can expect minimum spreads and low commissions. The zero account, for instance, features a spread as low as 0.01 pips with a commission of 6 USD per lot, while the regular trading account offers a spread of 0.08 pips with no commission.

Read more: Admiral Markets UK: Everything You Need to Know

Gold trading can totally work for beginners, but you gotta keep a few things in mind:

• First of all, Gold prices can be all over the place, so don't be surprised by the ups and downs. Just be ready for a bit of a wild ride.
• The second one, keep an eye on what's happening in the world – like economic stuff, political drama, and currency changes. They all play a part in how gold behaves.
• Gold is like the spice in your investment soup. It adds flavor and can be a safety net when things get crazy in the market. (read : Managing Risks in Forex Trading)
• Get cozy with some basic chart reading. It's like the GPS for your gold journey, showing you where to get in and when to bail.
• Be smart about risks. Figure out how much cash you're cool with throwing into the gold game, set up some safety nets, and don't put all your eggs in one golden basket.
• Dive into educational stuff from your trading platform or trustworthy money sources. The more you know, the better you'll navigate the gold scene.
• Start Small, Dream Big: Test the waters with a little bit of cash at first. It's like dipping your toes in before doing a cannonball.

So, yeah, go for gold, but keep it chill and don't forget to have fun with it!