The No 1 Trading Commodity
Gold trading with Forex
Gold online trading is straight forward with. In the Forex market, gold is considered a form of currency, and so is silver. Gold online trading is electronic, the same as other currencies and oil. Gold is traded in a similar way to other currency pairs.
However there is a difference: gold, silver and other commodities can only be traded against United States dollars (USD). Prices are always expressed in terms of the US dollar.
Trading with gold rates
Like foreign currency rates, online trading with gold rates does not require the "physical" purchase or sale of the real material. You do not purchase gold that you can hold.
The trading method for gold is called ‘over the counter’ or OTC. OTC deals are not part of the Stock Exchange of any country and so the deals are not controlled by the same methods as the Stock Exchange. OTC trading is performed directly between the seller and the buyer. No other people or organisations are involved.
OTC trading is the common form of trading in the Forex market
The advantages of online trading in gold
Commodity trading online has become much more of an interesting business endeavor with real time commodity quotes and live charting services. Internet technology has made the type of commodity trading services previously reserved for the deep pockets professional trader available to all.
Gold trading prices
Generally, as the price of gold increases, the price of the US dollar falls. This is why investors use gold trading as a way of balancing their profit and loss against the US dollar. Also, as gold tends to keep its purchasing power over time, investors may buy gold to balance the effects of inflation and currency value changes.
The price of gold is measured by its weight. The price shows how much it costs for one ounce of gold in US dollars.