Gold trading is the art of betting on gold prices in order to make a profit. It involves trading futures, options and shares as well as spot prices. During transactions, physical gold bars and coins are typically not handled. Instead they’re settled in cash.
There are many reasons that you might choose to trade gold.
The traditional mantra of “buy low, buy high” is not necessary when trading gold. It’s possible to go long or short on the gold price, taking advantage in both declining and rising markets. You can take any position you want, but the goal of gold trading will be to predict which market direction it will go in. The farther the market moves in the direction predicted by you, the more you profit. However, the bigger the loss, the less it moves for you.
Futures contracts, which are the most popular way to trade precious metals, are the main method. A futures deal is an agreement to buy/sell gold at a specified price at a given date. Futures contracts can also be used to seize physical commodities. But, you don’t necessarily need to do so – futures contracts can be settled with cash.
Gold contracts are traded mainly through the OTC London market and the US futures exchange COMEX. Online gold trading brokers can trade futures in gold.
Optional gold trades give you the ability to buy and sell gold at a predetermined price. This is known as the strike value. It expires on a given date. While a call option can be used to buy the metal, a put or call option can be used to sell it. Gold futures are used as the underlying asset in most gold options. With the best gold trading brokers, you can trade your gold options.
There are numerous gold buying points located throughout Nigeria. Currently, your gold can be purchased at Gold Buying Stations in Abuja, Lagos, Ibadan, Mokwa and others. If you want your gold to be accepted, it should come in disc or bar format and must not contain any amalgam or mercury. You can also trade your gold online with some of the most reputable gold trading brokers in Nigeria.
You can quickly and easily find the right position for you in three easy steps:
CFDs let you choose whether to purchase or sell gold or gold-linked investments. You’d purchase if you anticipated the asset’s price rising in a specific time period and you’d sell when you believed it was going to fall.
To fully understand how the market will change, it is essential to do both fundamental research and technical research.
Physical gold is preferred over gold stocks, gold mining stocks, and gold ETFs by long-term traders. Online gold trading brokers have made it much easier to purchase high quality physical gold. It can be shipped home or stored safely in a vault. But there have been instances of fake gold or counterfeit metal coins being sold online. You need to ensure that you’re buying from a reliable dealer.
Nigeria`s best online gold trading platforms:
Some believe that gold trades are the most difficult. It doesn’t move in the same way as other markets. If investors want gold trading to be rewarding, they should keep these points in mind.