Trading gold in the online Forex market is a fairly simple and straightforward process. You just need an internet connection to avail the benefit of online gold Forex trading. Online gold trading removes the hassle of calling your broker to place your orders. Not only that but you also save time waiting for a callback to have your order filled and execute the transaction.
Step 1: Choosing an Online Forex Broker
The first step in online gold trade in the Forex market is to connect to a reliable online Forex broker. You should carefully select an online broker after comparing their services and commission structure.
The underlying concept of every online Forex broker is the same i.e. facilitate currency trade in the Forex market. Yet, they differ in the sense that the leverage ratio, margins, and services offered to the client varies. In addition, the fee structure and commission also vary from broker to broker.
Some of the best online brokers offer online tools and charts to facilitate in technical analysis of the currencies before investing in a particular currency pair. Moreover, the online brokers also offer expert commentary and tips on Forex trading to make it easy for you to trade in Forex.
Step 2: Fill Out an Online Form
After selecting a reliable online broker you should fill out an online form to open an account with the Forex broker. You would be required to fill in your personal details in the online account form. Some of the personal details requested by the online broker include:
In addition, you would also be required to read and accept the terms and conditions of the online Forex broker. These terms and conditions specify that the online firm will not be responsible for any loss incurred by the trading transacting in the Forex market.
Once you have filled out the online questionnaire, you will then have to wait for the online Forex broker to scrutinize your application and give the green light to transact in the Forex trade. These steps are important because transacting in Forex trade entails a lot of risk for both the traders and online brokers. That is why before taking in new applicants they make sure that the prospective traders are of sound financial health and can entail the risk of investing in the Forex market.
The greater your creditworthiness, income, and wealth, the better the chances that you would be allowed to trade in Forex trade.
Step 3: Fund the Account
After the online broker gives you the green light, you are then required to deposit an initial amount to start trading in the Forex Exchange. Basically, the amount you deposit in the online account depends on the minimum required margin for the account and your appetite for taking risks.
Once you have deposited the required amount you can begin trading in the online exchange.
Step 4: Trade in Online Forex Platform
Log in to your online trading account. You should enter the username and password that you provided while filling out the online form to open the account.
Select the Currency pair tab in the central trading window. You will notice various currency pairs along with their current bid and ask price.
Choose the XAU/USD currency pair that indicates gold and us dollar pair.
Now, enter the amount to trade for the currency pair. The amount you enter depends on the initial deposit amount and the leverage ratio allowed by the online broker.
The online trading platform automatically enters the stop loss limit that you can view by clicking on the “Modify” button. You can change this value according to your preferences and then click on the “Freeze Now” button to lock in the transaction at the specified rate.
You can cancel the trade before the expiry date that is mentioned in the trading ticket.
Once the date expires, you cannot cancel the trade.
You would then have to wait for the opportune time to buy or sell the currency pair and benefit from the online trade.
It is strongly suggested that you become conversant with online Forex trading before trading in the Forex market. The reason is that Forex trade is a speculative market. The chances of hitting the jackpot are high but so are the chances of bearing losses from the trade.
Furthermore, you should also have a trading plan before investing in online Forex trade. This will allow you to maximize your chances of gaining from the online Forex trade and keep the risks of losses to a minimum.