Instead of buying and selling physical gold, Admiral Markets offers a way to trade gold CFDs. How are the spread and other trading specs for gold CFDs in this broker?
Gold is among the oldest instruments to trade, yet it remains one of the most popular investments to this day. The precious metal is often regarded as a "safe haven" because of its stable price even during economic turmoil or disaster. However, trading physical gold can be quite burdensome these days as it is not as practical as other instruments. The good news is that you can now trade gold CFDs in brokerage firms like Admiral Markets.
This means you can trade virtual gold and simply take advantage of the market price differences, just like forex trading. Let's learn more about gold CFD and its advantages in this article.
Contents
Trading Gold in Admiral Markets
Since 2001, Admiral Markets have committed to providing attractive conditions in a safe and reliable trading environment. In terms of security, the broker is currently licensed and regulated by trusted authorities in several countries, namely the UK, Cyprus, South Africa, Australia, and Jordan. Clients can get access to popular trading platforms such as MT4 and MT5, and a wide range of tradable instruments such as forex pairs, index CFDs, share CFDs, bond CFDs, commodity CFDs, and precious metal CFDs.
Gold CFD trading is one of the services that you might want to try at Admiral Markets. To begin with, gold CFD is a derivative contract that is traded on an over-the-counter (OTC) basis. But unlike futures contracts, this asset does not have an expiration date.
Moreover, there are several additional features that you can enjoy for free to help you collect more data and make informed decisions when trading with gold in Admiral Markets:
- Gold Live Updates: Provides real-time price of gold vs US Dollar CFD, global media sentiment, and more.
- Gold Global Opinion: Offers an overview of global financial media toward gold at the current moment. It uses a machine learning algorithmic technology that is able to scan and analyze data based on news, analytics, and price movements; allowing traders to get the upper hand in the market.
Gold CFD Trading Conditions
| 📂Account Types | Trade.MT4, Trade.MT5, Zero.MT4, Zero.MT5 |
| 🔢Spreads | 0.20 USD |
| 💸Commission | No Commission for Trade.MT4 and Trade.MT5 |
| 📍Micro Lots | Available |
Why Should You Trade Gold?
Gold is the most popular precious metal to trade in the world, mainly because of its unique functionalities and high-value storage properties. Many traders like to include gold in their portfolios to diversify or hedge against other investments. Apart from that, there are actually many other advantages to trading gold:
- Protection against inflation: Gold is known for its stable price, even during uncertain times. This is why it can be a handy instrument to save traders from rising inflation.
- Immune to crisis: Not only economic uncertainties but gold's value is also typically immune to geopolitical crises and natural disasters. It is able to avoid dramatic swings that usually happen in currency and stock market prices.
- Effective diversification: Due to its stable price, gold is a perfect instrument to diversify one's portfolio. It's considered a safer investment as it cannot be substantially devalued over time, unlike currency pairs or stocks.
- Good volatility: As with other commodity markets, gold can also be quite volatile in the short term. Also, note that some significant price spikes may occur every few years due to gold scarcity.
How to Trade Gold CFD in Admiral Markets
- Head over to Admiral Markets' official website and create a new live trading account.
- Download a trading platform of your choice (MetaTrader 4 or MetaTrader 5).
- Login to your account and launch the platform.
- Choose which underlying gold market you would like to trade.
- Open a position and monitor your trade.
See Also: How to Open Account in Admiral Markets
End Thoughts
Admiral Markets is a great place to trade gold CFDs. Despite being more on the traditional side, gold trading remains one of the biggest commodity markets in the world right now. As explained in this article, there are many factors that make gold CFD trading a better option than investing in actual gold. Instead of waiting for the price to increase, you can simply speculate and make profits in both bullish and bearish markets. On top of that, gold is a good market to trade if you want to diversify your portfolio and help protect your investment during uncertain times.
Admiral Markets is a forex and CFD brokerage that has been operating since 2001 to provide smart financial answers for traders around the globe. Their main services revolve around 3 key activities: Learn, Trade, and Invest. In doing so, they have many registered subsidiaries including Admiral Markets UK Ltd, Admiral Markets Pty Ltd (Australia), Admiral Markets AS Jordan Ltd, Admiral Markets Cyprus Ltd, Admirals SA (Pty) Ltd (South Africa), and Aglobe Investments Ltd (Seychelles) for the worldwide market.
11 Comments
Richardo
Jan 17 2023
Do the Gold certificates can also be obtained by trading gold on the Admiral Market? I mean it just like you buy gold from Gold's supply. And when you buy gold, you get certificates and assets just like when you buy from Gold's Supply. Anyway what does Gold CFD mean? Is that a commodity? or gold's brand or something?
Morrison
Jan 17 2023
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.
Richardo
Jan 17 2023
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?
Andrew
Jan 17 2023
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
Russell
Jan 17 2023
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.
Rico
Feb 17 2023
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
Feb 17 2023
I still don't understand why gold can be a safe haven. Even in trading, gold can still be one of the assets that can be traded and it seems to be a favorite among many traders.
I mean there are other materials that are more expensive than gold, such as diamonds. I mean, a 1-carat diamond can start from $1,800 all the way up to $12,000 depending on the quality of the cut, the clarity of the color, and the shape of the diamond.
Meanwhile, the price of gold is currently only 60 USD/gram. I mean there is a big gap between the price. What makes gold a safe haven, not diamonds?
Trissa
Feb 17 2023
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
Feb 17 2023
I can't determine what the standard amount of trading gold is. I mean =, in my country, Indonesia, traditional gold trading, including physical gold, is traded in grams. So I only need to prepare 1 gr gold bar to make investment. Not only 1 gr, other types of gold such as 0.25 gr gold bars are also available.
The total amount of standard investment required is around 950,000 RP or $63. Meanwhile, what I see on the gold chart for today (Feb 17, 2023), the standard investment I need is around $1826,80. I don't know the standard units used in gold CFDs or world gold market charts. Is there any explanation for this and I want to demonstrate my indonesian gold with the same chart but it seems impossible
Tom
Feb 17 2023
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
Feb 17 2023
I can't determine what the standard amount of trading gold is. I mean =, in my country, Indonesia, traditional gold trading, including physical gold, is traded in grams. So I only need to prepare 1 gr gold bar to make investment. Not only 1 gr, other types of gold such as 0.25 gr gold bars are also available.
The total amount of standard investment required is around 950,000 RP or $63. Meanwhile, what I see on the gold chart for today (Feb 17, 2023), the standard investment I need is around $1826,80. I don't know the standard units used in gold CFDs or world gold market charts. Is there any explanation for this and I want to demonstrate my indonesian gold with the same chart but it seems impossible