Online trading in gold is straight forward with easy-forex®. In the Forex market, gold is considered a form of currency, and so is silver. Online trading in gold is electronic, the same as other currencies and oil. Gold is traded in a similar way to other currency pairs.
However there is a difference: gold, silver and other commodities can only be traded against United States dollars (USD). Prices are always expressed in terms of the US dollar.
Like foreign currency rates, online trading with gold rates does not require the “physical” purchase or sale of the real material. You do not purchase gold that you can hold.
The trading method for gold is called ‘over the counter’ or OTC. OTC deals are not part of the Stock Exchange of any country and so the deals are not controlled by the same methods as the Stock Exchange. OTC trading is performed directly between the seller and the buyer. No other people or organisations are involved.
OTC trading is the common form of trading in the Forex market
Traders can perform day-trading in gold. Day-trading means deals are usually completed before the close of trading that day. Gold traders usually hold their position for a short time only, but it is not necessary to complete the deal within a day. The deal can be extended for two or three days, depending on how the trader decides to make the deal.
Once a gold day-trading deal is opened, it can only close in one of three ways:
Until one of these three things happens, the deal continues. When your day-trading gold deal is open, it is renewed automatically every night at 22:00 GMT, and each time it is renewed, a small charge is made from your trading account.
Commodity trading online has become much more of an interesting business endeavor with real time commodity quotes and live charting services. Internet technology has made the type of commodity trading services previously reserved for the deep pockets professional trader available to all.
Generally, as the price of gold increases, the price of the US dollar falls. This is why investors use gold trading as a way of balancing their profit and loss against the US dollar. Also, as gold tends to keep its purchasing power over time, investors may buy gold to balance the effects of inflation and currency value changes.
The price of gold is measured by its weight. The price shows how much it costs for one ounce of gold in US dollars.
You can learn more about gold prices here.