Buying & Selling XAUUSD - Going Long or Going Short
In trading Gold online, traders can make profits by buying Gold contracts or selling XAUUSD contracts depending on the direction Gold prices. If gold prices are moving upward then a trader will buy XAUUSD so as to make a profit. If prices are moving down then a trader will sell XAUUSD so as to make a profit.
The prices of Gold at any particular moment are either moving upwards or downward in what is known as a trend. The trend is the general direction of the Gold prices. Therefore, if the price of gold is moving in an overall upwards direction, the trend is upwards & a trader should buy XAUUSD, if the price of gold is moving in an overall downwards direction, the trend is downwards & a trader should sell XAUUSD.
Going Long or Going Short
Going Long - When a trader buys Gold this is known as Going LongGoing Short - When a trader sells Gold this is known as Going Short
Long - long is another term used to refer to buying, when a trader goes long it means that they have bought the XAUUSD metal that is heading 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 - short is another term used to refer to selling, when a trader shorts XAUUSD, it means that they have sold the XAUUSD metal that is heading downward in a bearish trend. When the prices of XAUUSD are moving in a general market trend that is downward then the market is said to be bullish.
Buy/Long
Basically the term, "buy long" can be used refer to buying currencies in the online XAUUSD trading exchange market. Buy long is used to transact when prices of Gold are predicted to appreciate in value compared to the USD, when the XAUUSD metal, Gold is bought then it is the same as holding value in XAUUSD and instead of holding value in USD - Holding Value in Gold after selling USD.
If the price of XAUUSD is going up we buy, this is referred to as going long, therefore long is just another name for buy. When the Gold price trend is going up it is referred to as a bullish,this is when a buy order is placed. A bullish trend is identified by plotting an upward trend line on a Gold chart. The example below shows a long/buy signal.
Buy/Long - XAUUSD Price Upwards Trending Market
Sell/Short
Basically the term, "sell short" can be used refer to selling currencies in the online Gold trading exchange market. Sell short is used to transact when the prices of Gold are predicted to depreciate in value compared to the USD, when the XAUUSD metal, Gold is sold then it is the same as holding value in USD and instead of holding value in Gold - Holding Value in USD after selling XAUUSD.
If the price of XAUUSD is going down we sell, this is referred to as going short, therefore short is just another name for sell. When the Gold price trend is going down it is referred to as a bearish,this is when a sell order is placed. A bearish trend is identified by plotting a downward trend line on a Gold chart. The example below shows a short/sell signal.
Sell/Short - XAUUSD Price Downward Trending Market
XAUUSD ++TradeTrading Platform
This is the software that is provided by an online broker to help traders make place their transactions of buying & selling XAUUSD. Once you download and installs this software on your computer you can then start to trade XAUUSD online. All transactions are executed through this trading platform. If you want to learn a platform, MT4 is a good platform to begin with.
To set these buy and sell orders open MT4, open a "chart ", right click +oon the "chart ", select "New Order ", then choose the order either sell or buy as shown below. (Short Cut Keys - Press F9)
In the example below we have used the forex pair EURUSD, if you want to trade Gold just change the symbol to XAUUSD & you can then use the buttons shown below to either go long or go short when trading Gold metal.
Alternatively you can first open the XAUUSD chart & place a XAUUSD trading order directly from the chart.
Going Long & Going Short on the MetaTrader 4 Platform Software
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