The practice of trading gold involves speculating on how the gold market will perform in order for you to make a profit. This may be done using futures, options or spot prices. Shares and exchange-traded fund (ETFs) are also possible. During transactions, physical coins and bars of gold are usually not handled. Instead, cash is used to settle the transaction.
There are many reasons to trade gold.
Trading gold doesn’t require you to adhere to the old mantra of ‘buy high, sell low’. You can also go long or short on prices of gold – taking advantage both of price falls and of those that rise. No matter what position you are in, gold trading is all about forecasting the market’s direction. The more the market moves in the direction that you predicted, the greater your profits. Conversely, the more the market moves against or towards you, the larger your losses.
Gold futures
Futures contracts can be used to trade gold. A futures agreement is an agreement to buy and sell gold at a specific price at a future date. Although futures can be used for physical commodity possession, they don’t have to be – futures can be settled in money.
Gold contracts are traded mainly on the OTC London exchange, the US futures market COMEX, and the Shanghai Gold Exchange. Trade gold futures can be done with online gold trading brokers.
Optional gold
Options on gold give you the right to trade the metal at a fixed price (known as the strike price) and with a specific expiry date. You can buy the metal by buying a call option, and you can sell it by purchasing a put option. Gold futures are the underlying asset for most of the gold options. Trade gold options with the top gold trading brokers.
There are many gold buying stations throughout India. Currently, gold can be sold at the Gold Buying Stations found in Delhi, Bengaluru, Hyderabad, Mumbai and others. Gold must be in disc- or bar form, and should not contain mercury or amalgam. The best gold trading brokers in India can also help you trade gold online.
Three steps to get your position:
CFDs allow you to trade gold and gold-linked assets. You can also choose between selling or buying the market, which is known as going long or small. You would buy if the asset’s prices were expected to rise over a set time period, and you would sell if they fell.
To determine the direction that the market will move in, you need to do extensive research. This includes both fundamental and technical research.
Physical gold is preferred by long-term investors over gold receipts and gold mining stocks. With the rise of online gold trading brokerages, it is easier than ever for high-quality physical to be purchased and shipped home or stored securely in a vault. Online sales of counterfeit gold or coins are not uncommon. It is therefore important that you make sure that you purchase from a trusted dealer.
Here are the top online gold trading brokers that permit you to trade in India:
There are many who believe gold is one the most difficult markets to trade. This is true, but it doesn’t move like other market. If investors want to be successful in trading it (which can be very rewarding), there are several things they need to remember.