GOLD TRADING VIA CFDs

Frequently Asked Questions

• 1

  How do you trade in gold?

  There are several ways to engage in gold trading, including buying and selling spot gold, gold futures, gold options, CFDs or investing in gold stocks and ETFs.

  To execute a trade on Vantage, you'll require a live trading account. This enables you to participate in the gold market and seize trading opportunities on the price movements of gold via CFDs.

• 2

  Is trading gold profitable?

  Gold is a dynamic and frequently traded market, known for its liquidity and price volatility. Engaging in gold trading can offer potential opportunities for profitability, provided you develop a robust trading system that suits your individual preferences and goals.

  However, it is essential to acknowledge the inherent risks associated with trading. Losses can occur, and it is crucial to exercise due diligence before making any trades. It is advisable to trade only with funds that you can afford to lose, ensuring that your financial stability remains intact.

• 3

  How risky is gold trading?

  Trading gold carries risks owing to market fluctuations. One key factor for price change is caused by the supply and demand of the metal. For example, if a mining company underperforms, demand may exceed supply, pushing gold prices higher. Financial stress can also increase demand for gold. For instance, during the 2008–12 financial crisis, gold prices surged by more than 230%.

  Geopolitical events can also drive investors to seek the safety of gold, causing price fluctuations. On the contrary, with its negative correlation to the stock market, Gold tends to fall when stocks are doing well. Ultimately, traders should do their due diligence to ensure that they understand the market and risks involved.

• 4

  How much money do you need to trade gold?

  When using Vantage, you have the option to begin trading with a minimum deposit of USD$50.

  Trading gold as a CFD offers traders the opportunity to leverage their capital, enabling them to open larger trade positions with a relatively small amount of funds. Leverage has the potential to amplify profits; however, it is important to note that it also exposes traders to the risk of losses that may exceed the margin available in their trading accounts. It is crucial to exercise caution and carefully manage risk when utilising leverage in gold trading or any other financial markets.

• 5

  What are the trading hours for gold?

  The trading hours for gold are Monday-Thursday 01:01-23:58 and Friday 01:01-23:57.

  Although gold trades happen around the clock, beginners can find most of the market liquidity during New York trading hours. It’s important for traders to be aware of these hours to plan their gold trading strategies accordingly. During the opening and closing of the market, liquidity might vary, and price spreads might be wider. The availability of trading around the clock makes gold an attractive market for those looking to trade outside of traditional stock market hours.

• 6

  How to invest in gold for beginners?

  ETFs are the best way for a beginner to invest in gold. You can start your trading journey with Vantage by opening a live or demo account. A gold ETF has the advantage of having indirect ownership of physical gold, which is less risky than other options.

  Some examples of gold ETFs are SPDR Gold Minishares Trust ETF (GLDM) and iShares Gold Trust (IAU), although there are others.

• 7

  What are the benefits of trading gold with Vantage?

  At Vantage, we are committed to enhancing your gold trading experience through CFDs that combine ease of use with comprehensive functionality, accommodating traders of all experience levels.

  User-Friendly Interface: Navigate and manage your gold CFD trades efficiently with our intuitive interface.

  Robust Risk Management Tools: Our platform includes features like stop loss, take profit, and negative balance protection to manage risks effectively in CFD trading.

  Access to Expert Analysis and Educational Resources: We provide traders with access to expert market analysis and a wealth of educational materials to enhance CFD trading knowledge and skills.

  Responsive Customer Support: Our dedicated customer support team is always ready to assist traders with any questions or issues you may encounter, ensuring a smooth CFD trading experience with gold.