Buying & Selling XAUUSD - Going Long or Going Short
In trading Gold online, traders can make profits by buying Gold contracts or selling XAUUSD lots depending on the market direction Gold prices. If gold prices are moving upward then a gold trader will buy XAUUSD so as to earn a profit. If prices are moving down then a xauusd trader will sell XAUUSD so that to earn a profit.
At any moment, Gold prices are either increasing or decreasing, and this is called a trend. A trend is the general way Gold prices are moving. So, if the price of gold is mostly moving upward, the trend is upward and a gold trader should buy XAUUSD, but if the price of gold is mostly moving downward, the trend is downward and a xauusd trader should sell XAUUSD.
Going Long or Going Short
Go Long - When a trader buys Gold, it is called Going Long. Going Short - When a trader sells Gold, it is called Going Short.
Long - long is another name used to refer to buying, when a trader goes long it means that they have bought the XAUUSD metal that is moving upward in a bullish trend. When the prices of XAUUSD are moving in an overall market trend that is upwards then the market is said to be bullish.
“Short” just means selling. So if you're shorting XAUUSD, you're selling it because you think the price will drop. When XAUUSD prices are trending down, that's a bearish market, not bullish. If someone calls it bullish when it's falling, they've got it backwards.
Buy/Long
The online XAUUSD trading exchange market is where the phrase "buy long" can be used to describe the act of purchasing currencies. When the price of gold is expected to rise relative to the USD, a long purchase is made. This is equivalent to holding value in the XAUUSD metal and holding value in gold after selling USD, rather than holding value in USD.
If the price of XAU/USD is heading up we buy, this is referred to as going long, henceforth long is just another name for buy. When the Gold price trend is moving up it is known as a bullish,this is when a buy order is placed. A bullish trend is identified by plotting an upwards trend line on a Gold chart. The example put on display below shows long/buy signal.
Buy/Long - XAUUSD Price Upwards Trending Market
Sell/Short
In the context of online Gold trading for XAUUSD, the expression "sell short" is employed to describe the act of selling the asset. Short selling is utilized when the expectation is that the value of Gold will decline relative to the USD. When the precious metal, Gold (XAUUSD), is sold, the position taken is equivalent to holding capital denominated in USD rather than in Gold - essentially realizing a USD holding value after offloading the XAUUSD asset.
Sell XAU/USD when the price drops. That's going short, or just selling. A downward gold trend is bearish. Place a sell order then. Draw a down trend line on the chart to spot it. The example below shows a short sell signal.
Sell/Short - XAUUSD Price Downward Trending Market
XAU/USD Platform Software
This refers to the trading interface supplied by an online brokerage, designed to facilitate online traders' execution of buy and sell transactions for XAUUSD. Upon downloading and installing this software on a personal computer, an individual can commence online XAUUSD trading. All order executions are processed through this specific platform. For newcomers seeking to master a platform, MT4 is widely considered an adequate starting point.
To establish these buy and sell orders, open MT4, access a "chart", right-click on the "chart", select "New Order", and then choose either a buy or sell trade order as illustrated below. (Shortcut Keys - Press 'F9')
In the example below, we used the forex pair EURUSD, but if you want to trade Gold, just change the symbol to XAUUSD, and then you can use the buttons shown below to either buy or sell when trading Gold metal.
Alternatively, you have the option to first load the XAUUSD graph and then place a trade order for XAUUSD straight from that chart view.
Going Long & Going Short on the MT4 Platform
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