GOLD TRADING

There are several ways to engage in gold trading, including buying and selling spot gold, gold futures, gold options, CFDs or investing in gold stocks and ETFs.

To execute a trade on Vantage, you'll require a live trading account. This enables traders, including those in South Africa, Kenya, Botswana, Nigeria, and various other regions, to participate in the gold market and seize trading opportunities on the price movements of gold.

Gold is a dynamic and frequently traded market, known for its liquidity and price volatility. Engaging in gold trading can offer potential opportunities for profitability, provided you develop a robust trading system that suits your individual preferences and goals.

However, it is essential to acknowledge the inherent risks associated with trading. Losses can occur, and it is crucial to exercise due diligence before making any trades. It is advisable to trade only with funds that you can afford to lose, ensuring that your financial stability remains intact.

Trading gold carries risks owing to market fluctuations. One key factor for price change is caused by the supply and demand of the metal. For example, if a mining company underperforms, demand may exceed supply, pushing gold prices higher. Financial stress can also increase demand for gold. For instance, during the 2008–12 financial crisis, gold prices surged by more than 230%.

Geopolitical events can also drive investors to seek the safety of gold, causing price fluctuations. On the contrary, with its negative correlation to the stock market, Gold tends to fall when stocks are doing well. Ultimately, traders should do their due diligence to ensure that they understand the market and risks involved.

When using Vantage, you have the option to begin trading with a minimum deposit of USD$50.

Trading gold as a CFD offers traders the opportunity to leverage their capital, enabling them to open larger trade positions with a relatively small amount of funds. Leverage has the potential to amplify profits; however, it is important to note that it also exposes traders to the risk of losses that may exceed the margin available in their trading accounts. It is crucial to exercise caution and carefully manage risk when utilising leverage in gold trading or any other financial markets.

ETFs are the best way for a beginner to invest in gold. You can start your trading journey with Vantage by opening a live or demo account. A gold ETF has the advantage of having indirect ownership of physical gold, presenting a less risky option for traders in regions such as South Africa, Kenya, Botswana, Nigeria, and other parts of the world.

Some examples of gold ETFs are SPDR Gold Minishares Trust ETF (GLDM) and iShares Gold Trust (IAU), although there are others.