Wednesday, March 7, 2018

Precious metals have been the most heavily traded commodities since the 1970s. In addition to forex trading, investing in gold and other precious metals over the long term is a popular tool around the world and is used to manage portfolio risk in times of inflation or economic / political uncertainty.

Futures are so-called derivative contracts, meaning that their value is derived from the performance of the underlying asset. Risk mitigation is one of the main purposes of investing in precious metals futures: given the ability of buyer and seller contractors to determine future transaction prices or rates in advance, they can avoid sharp or sudden price movements that may lead to increased losses.

Precious metals can trade in both directions: if the market is expected to move upwards (bullish trend), it is possible to enter into trades by buying and selling futures (if you expect a bearish move) Entering transactions by selling futures and selling them through a contract. There is also the possibility of trading multiple futures, by making several separate entry and exit transactions, ie entering into different prices at different prices and exiting them at one price, or vice versa. The ability to trade in both directions allows investors to make profits regardless of market movements up or down.


Given the wide fluctuations in prices and the overall appreciation in recent years, gold is one of the most traded commodities by global investors on a daily basis. Gold prices have risen since 2000 and were seen as a safe investment for traders when the world was suffering from the effects of the financial crisis at the time. Historically, gold has been a commodity traded against various currencies, although previously traded by countries, banks and large institutions, today is increasingly practiced by ordinary people.

Since January 1, 2002, the price of gold has increased significantly. Investors have benefited from this in two ways: long-term investors have seen a significant increase in return on investment, and investors in the short term have benefited from the large and frequent fluctuations in the value of gold up or down.

Gold trading features
- Gold is a commodity that new traders know and can find good and reliable sources of information to plan their investments in the future.
- Daily and repeated fluctuations in the price of gold enable traders to benefit from short-term investments.
- Gold prices are known to be linked to other currencies, providing potential indicators for veteran investors.

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