Guidelines for Trading CFDs on Gold and Silver
Introduction
The term CFD stands for contracts for difference. CFD are derivative instruments that are usually utilized by traders to trade commodities such as trading silver online or gold. These contracts allow you to invest in gold online as well as silver without physically owning any of it.
For trading silver online and gold, the broker and trader need to agree on CFD contracts with a set end date. Traders who are looking forward to invest in gold online and silver actually buy CFD and go long if they anticipate an upward price movement. On the other hand, traders who anticipate a downward price trend can opt for a short position and can even open a sell position.
Usually when participating in silver trading-related activity, you need to remember that your booked profits aren’t just the difference between the opening/ buy and closing/ selling price points of the trade. As a trader, you also required to add up the cost of trading such as the spread and taxes.
The CFD for gold and silver trading operates just like any other trading instrument, such as options and futures contracts. CFDs are often preferred by trader because it provides relative ease of entering and exiting positions. But other than that, there are other benefits as well.
With CFD, trader have an advantage because the financial instrument is available on every exchange across the globe. Such availability allow trader to carry on gold and silver trading twenty-four hours a day and five day a week.
While trading silver online and gold, you can opt for leverage. You can leverage using CFD — as it allows you to get larger exposure to the capital market with a fraction of deposits. Leverages are also termed as margin since it provides traders the capability to book bigger profits.
About ICM
ICM is UAE-based platform that provide over-the-counter trading services on spot metal trading including spot gold and spot silver quoted in Euro and USD per troy ounce. ICM offer full metal trading capabilities and access to global financial Markets. Metal Trading at ICM is easy to understand, especially if you and your organization have a few years of experience with online spot metal trading.
The UAE-based ICM’s online precious metal futures trading platform offer user the ability to trade spot gold and spot silver with tight spreads, fast execution and deep liquidity. The objective of the UAE-based ICM’s cutting edge spot metal trading platform is to equip you with a wide range of complex trading metals capabilities — so that you can take advantage of both the upward price movement (long) and downward price movement (short) without paying anything for the physical ownership of the metal.
Trading metals with the help of the UAE-based ICM’s spot metal trading platform allow you and your organization to efficiently manage risk and boost profitability as well as grow in the long run.
