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Xauusd trading provides an alternative investment to traders and xauusd investors. Retail traders or the individual xauusd investors trade the market for speculation purpose to profit from the price movements. Traders will place trades in the market and try to make profits from the market moves.

Xauusd trading activities involve speculative xauusd transactions which make the market the one of the liquid one trading market in the world.

The market is also an Over The Counter market which means trades can be opened from anywhere in the world.

Most xauusd activity is done for speculation and when most people talk about xauusd trading they are most likely referring to speculative xauusd. The market participants that trade for speculation purposes are the small individual xauusd trading investors & retail traders and they are commonly referred to as retail investors or retail gold traders.

The market growth that is as a result of these retail traders joining the market and trading the market online through brokers.

The retail traders often trade online and open trades from their accounts that they have opened with their brokers. This makes the a global online market place where traders can open trades in this online market from anywhere in the world. The size of the online market price means the market is very liquid and traders can open trades at any time of day or night during the xauusd week. This liquidity also means that no one can control the market because of its sheer size.

Gold prices keep moving up and down all the time and these market movements are determined by supply and demand of the xauusd.

These market movements can be studied using technical analysis & xauusd fundamental analysis.

Gold analysis is the study of market movements based on different price pattern formations that can be interpreted differently depending on the xauusd pattern formed. This study of gold price movement and price patterns is known as price action xauusd. Other technical analysis methods include use of charts to interpret market moves. Analysis also includes use of technical indicators which are tools that calculate the momentum of a trend.

Gold analysis also involves study of market trends. A trend is a general direction of gold prices in the market that can be up or down. In the market, prices generally move in trends and when a trend is formed prices keep moving in that particular direction for a period of time. For this reason when a trend is formed then traders will keep opening trades in the same direction of the trend for as long as the trend continues to move in that direction. Traders will use technical analysis to determine the direction of these market trends & also to determine the momentum of these market trends.

Fundamental analysis is the study of gold price movements by interpreting economic reports to determine the likely direction that price is likely to move. This type of analysis will require the trader to read a lot about all the various economic reports and learn how to interpret each xauusd report. This type of analysis might take time to learn & master. It also requires that traders keep up with the numerous economic reports released.

Brokers

Because the online market does not trade from one central xauusd place, traders need to trade with a online broker that will connect them to the online market.

To start xauusd - traders need a computer that is connected to the internet. Traders then open a account with an online broker and from this account traders can set trades directly to the online market. Once one opens a trade on their account, the broker will then place these trades on the market on behalf of the traders. Once the trader decides to close their trades, then the broker will close the trades & remove the trades from the online market and credit the traders with the profit or loss they have made from trading the market.

With the coming of many brokers - traders can open accounts from anywhere in the world and trade trading from any location in the world directly from their home computer or office computer. The ease with which a trader can open a account with any online broker and trade from anywhere in the world is what has contributed to the growth of the market especially among the retail investors & retail gold traders.

Platforms

The broker provides traders with software that are commonly known as platforms in the market. From these platforms traders can log in to their accounts, place trades from this platforms and also monitor their account balance from these platforms.

The softwares provide traders with streaming price quotes & charts that draw these quotes in the form of graphs known as charts.

A platform will for example display charts and also display streaming price quotes of these xauusd.

If the streaming price quotes are moving up, then the chart of these price quotes will show a general upwards direction and traders can buy these instrument depending on the upward price trend movement of these price quotes. This is why charts are provided and drawn automatically on the platform so that traders can determine the direction of the market and therefore be able to decide what direction to place their gold trades.

How to Open a Trade

Once one opens a buy or sell trade, the trader has to hold on to this trade for some time so as to give the price, time to move in one or the other direction. This xauusd trade is known as a position. A trader may only open their trade for a few minutes and only aim to make little profits or a trader may hold their trade for hours so as to try and make more profits from the trade. However, because xauusd is speculative, gold trades may also move in the opposite direction of the trend & a trader should be ready to close their trades after the loss moves against their position by a specified number of pips so as to minimize further losses.

Why Trade XAUUSD

The number one of why to trade XAUUSD Trading is leverage. With leverage - traders can open their account with little capital and borrow the rest from the broker the money required to make trade transactions. For example a trader can open an account with $10,000 and the broker may give them xauusd leverage of 100:1 which means traders can borrow up to 100 times their capital, therefore a trader will control $10,000 multiplied by 100 which is a total capital of $1,000,000 that a trader can open trades with.

However, traders should be careful when trading with leverage because leverage increases profits as well as losses and that is why gold traders should make sure they learn money management rules before they start trading XAUUSD. XAUUSD money management rules tutorial is covered in this learn site on the learn tutorial section under the Key Concepts topics.