Gold Market Tutorial
Learning to trade the market will be much easier for beginner traders that starts by learning basics as they will have the basic ideas and concepts that are required to make it easy to understand what is xauusd and how to carry out xauusd.
What's XAUUSD Trading?
Now with the advancement in technology and the growth of the internet xauusd and the coming up of retail brokers has now become accessible to retail traders and anyone with a computer that is connected to the internet can start xauusd. Minimum starting amount required to begin trading is $100 dollars making xauusd affordable to many retail traders and investors.
The retail investor can now get access to the online market through these retail brokers. All a trader requires is to open an account with a broker & the trader can then trade with their broker from anywhere in the world.
The retail brokers also provide traders with the capital required to trade in the market using leverage. In the are traded in standard lots or one standard contract. Because many traders can't afford this, brokers provide capital to traders and traders can borrow this capital from their brokers and trade with it using leverage. For example a broker will provide xauusd leverage of 100:1 meaning that a retail trader can borrow up to 100 times of the capital they have. Therefore, if a trader has capital of $1,000 dollars in their account using leverage 100:1, they can borrow upto 100 times their capital, this will be $1,000 multiplied by 100, which is equivalent to $100,000 dollars which the trader will now control & the trader can trade with this amount in the market. This means that a trader with only $1,000 dollars can now trade with $100,000 leveraged amount in XAUUSD after using leverage of 100:1 from their broker.
Leverage which means that a trader has access to borrowed capital and can trade with this borrowed capital provided by their broker is what makes xauusd trading accessible to may retail traders. This leverage is what has contributed to the growth and popularity of xauusd. In xauusd 95% of all trading transactions is carried out by retail traders.
Gold Market Moves
In xauusd, gold prices are always moving up or down and it is this movement that traders want to trade in order to try and make a profit from these trading price moves. The daily gold price fluctuation is very small and mostly these moves are less than 1 % in value. This is why brokers provide xauusd leverage & why most traders use leverage so that they can multiply the profits from these market moves. It is also xauusd are traded in big lots of many units so as to increase the profits per transaction - However, this can also increase losses as well if the trades go against a trader's position.
