Frequently Asked Questions

• 1.  

  What is gold trading?

  There are two approaches to gold trading:

  • The buying and selling of the actual gold, or gold in its physical form.
    Investors can buy and sell gold through dealers and shops in its tangible form. They can buy and sell gold coins, bars and even gold jewelry.
  • Speculating gold prices through derivatives or Contracts for Difference (CFDs).
    This type of trading is conducted through online gold trading platforms and apps. Traders can speculate on the prices of the precious metals and make potential profits if the market moves according to their expectations.

  When choosing either approach, investors are required to equip themselves with the specific terms of each gold trading platform.

  2.  

  How to begin gold trading?

  To begin your gold commodity trading journey, it is essential to comprehend the various methods available for trading gold. If you opt for online gold trading, here the steps you should follow:

  • Arm yourself with the most reputable local and international brokers and gold trading platforms they offer. A reliable broker offers competitive trading conditions and adheres to compliance standards to ensure the safety of your funds.

  Once you find a broker you trust, you can open an account, fund it and start your journey.

• 3.  

  What gold trading options are available?

  When delving into the realm of the precious metal, investors have several avenues for trading gold. These include:

  • Physical Trading: Investors can trade gold in its physical shape. They can buy and sell gold in the form of bars, coins or jewelry.
  • Gold Exchange-Traded Funds (ETFs): Gold EFTs are securities that mirror the price of gold, and can be traded on gold exchanges just like stocks.
  • Futures Contracts: Institutional investors often opt for trading gold via future contracts, which involve buying or selling gold at a predetermined price on a future date..

  Contracts for Difference (CFDs): Trading gold via CFDs allows traders to speculate on the prices of gold without the need to own the underlying assets. This method enables leveraged trading, which can potentially amplify profits and unfortunately losses at the same time.

  4.  

  How does gold trading differ from stock trading?

  To start with, the price of gold is primarily influenced by the supply and demand, geopolitical events taking place around the world, economic indicators, and investor sentiments. Stocks are influenced by company-specific elements such as the management decision, earning reports, and the trends of each industry.

  Moreover, the stock market tends to be more liquid than the gold market due to its higher trading volume. This liquidity often results in narrower spreads in stocks than in gold.

  While the initial steps to start trading are similar, investors must delve into the distinct factors when deciding between trading gold or stocks. Each asset class requires a unique set of considerations based on their underlying dynamics.

• 5.  

  What drives gold prices?

  Here are the main factors can have impact on the price of gold:

  • Central Bank Reserves
    Central banks often hold gold as part of their monetary reserves. An increase in reserves typically correlates with a higher price for the yellow metal.
  • U.S. dollar
    The price of gold tends to move inversely to the value of the U.S. dollar. When the dollar strengthens, gold prices often decline, and vice versa.
  • Wealth Protection
    Gold's stability during times of uncertainty makes it a sought-after safe haven. Investors often increase their gold holdings as a form of wealth protection during turbulent periods, leading to an uptick in its price.
  6.  

  How to invest in gold on your platform?

  The steps to start investing in gold CFD with STARTRADER are simple and straightforward. Here are more details:

  • You need to register for a live account. Click the “register” button and upload the required documents.
  • Once the documents are verified and your account is approved, you are nearly set to start your investing journey in the world of precious metals.
  • Now, log into your account, fund it, and proceed to place your first order.
• 7.  

  What's the best time for gold trading?

  To identify the optimal hours for gold online trading, it's essential to understand the general structure of trading sessions around the world.

  • In North America, the trading sessions are between 3 P.M. and 11 P.M. (GMT+3). This time frame experiences high trading activity as both institutional and retail participants engage in the market. Traders can spot better opportunities and tighter spreads due to high volatility.
  • The European trading sessions are between 10AM,and 6PM (GMT+3). During these sessions, trading activity is slightly lower than in North America but it still presents favorable possibilities.
  • India and Indonesia have specific time frames. When the local markets are active in the region, trading activity increases.
  • New York trading sessions are between 7 P.M. and 3 A.M. while the London trading sessions are between 2 P.M. and 10 P.M..

  Traders looking for optimal opportunities should consider timing when the market is mostly active. Most heightened activity occurs when major trading sessions overlap.

  8.  

  How to open a gold CFD trading account?

  To open a gold CFD trading account with STARTRADER, you all you have to do is:

  • First of all, click “Open an account”
  • Follow the steps, provide the information required, and upload the documents needed.
  • You will receive an email confirming the receipt of your documents and stating that your account opening request is under review.
  • The account opening process typically takes up to two days to complete, and the duration may extend based on the completeness of your submitted documents.
  • Upon the completion of the process, you will receive your login details.
  • Now, you can fund your account and start trading.
• 9.  

  What's the minimum investment for gold trading?

  Online gold trading apps and online gold trading platforms have different requirements when it comes to the minimum investment in gold. With STARTRADER, the minimum deposit for trading Gold CFDs is just 50 USD.

  10.  

  How to manage risk in gold trading?

  To effectively manage the risks associated with gold trading, consider the following strategies:

  • Keep updated on the news and events which can impact gold prices.
  • Stick to your strategy and avoid letting emotions dictate your decision.
  • Place a stop loss order to protect your capital in case the market goes contrary to your expectations.
  • Utilize the risk-reward method by aiming for trades with a profit potential three-times greater than the risk involved.
  • While gold is a valuable investment, it is better to diversify your portfolio by including different assets.
• 11.  

  How to calculate profits in gold trading?

  Calculating the profits in gold trading depends largely on the type of trading you are doing. As mentioned before, you can do physical gold trading, or gold spot trading, CFDs trading, or ETFs. In general, you need to consider the following:

  • Entry Price.
  • Exist Price.
  • Quantity
  • Fees
  • Comission
  • Leverage

  For physical gold or gold ETFs:

  • Profit = (Exit Price − Entry Price) × Quantity − Fees
  12.  

  How much margin required for gold trading?

  Different brokers may charge different margins. Often, that depends on the regulations they have and the leverage they offer. When it comes to CFD gold trading, the leverage ranges from 1:20 to 1:200. It can be higher, but we are just stating the common range. To calculate the gold online trading margin, you can follow this formula:

  • Margin=(Gold Price×Contract Size)÷Leverage
• 13.  

  What is PIP in gold trading?

  In the world of forex and gold trading, spread is the difference between the buy price and the ask price. The spread is usually measured in pip, which is the smallest price movement in the value of an asset, in our case, gold.