Attractiveness of GOLD trade with XM

GOLD trade with XM is also available on the same trading tool as FX（MT4/MT5 or Webtrader）.

In addition, maximum 1:1,000 leverage is also available, therefore inexperienced person for GOLD trade can start trading with the same feeling with FX. 

Feature of GOLD trade

GOLD as an investment object

GOLD which XM deals with is the precious metal, GOLD which has a rare value as metal. The demand is also high as the investment object and its correlation with Forex market is well known.

As GOLD is finite and its demand is high, it is a real asset where the price hardly declines even in a recession period and many investors carefully watch the trend. It is often referred as ‘GOLD as a safe heaven’ in a risk-off market such as economic crisis.

GOLD is also used as a criteria for risk appetite of market participants as GOLD is sensitive to its risk-off atmosphere. For example, when long position of GOLD is predominant in its position ratio, the feeling of market participants is favor for risk-on.

High liquidity and high volatility

Gold has high liquidity and the average range of the day (difference of highest and lowest price) is about USD 20.00.When the movement is slow, the range would be within about USD 10.00, still though when the movement becomes hectic, the range may become more than USD 50.00.

GOLD stands out for its high volatility compared with GBP/JPY which is popular for its high volatility among Forex. This high volatility is the feature is one of the reasons why GOLD is popular for the traders who favor short-term trades.

Average range comparison table for GOLD and Forex

Pips in GOLD trading

The unit used for FX trading is the ‘pip.’
For GOLD the 1 pip in FX is equal to 0.1 dollars.
GOLD has about USD 20.00 range per day, therefore the range will be USD 20.00 = 200 pips.

XM has required a high reputation from many clients as there are plenty of advantages which other brokerage houses do not have.

Maximize your funds with maximum 1:1,000 leverage

XM allows you to trade GOLD with the same maximum leverage 1:1,000 as FX.
GOLD trade is available even with minimal amount of margin, so it is possible to earn money speculatively in scalping trade. Also for who does not use high leverage can do with small amount of required margin.

Overwhelming Execution Power and no requote

XM realizes top-level high execution power among others also in GOLD trading.
Even though GOLD has wide range of price movements, 99% of all the orders will be executed within 1 second and there is no requote.

Even when the market moves rapidly, you can trade with ease.
Also traders who feel stress about the execution speed for a large size trade can concentrate GOLD trade without stress with XM.

Trading adjustable by increment of 0.01 lot

GOLD can be traded from 0.01 lot in any of the accounts, Standard Account, Micro Account, XM Ultra Low Account Standard and XM Ultra Low Account Micro.

GOLD requires accurate strategies on the spot as it moves quickly in a short time and it is quite difficult to keep generating profits from short-term trades.However XM allows you to trade with minimum 0.01 lot, therefore you can experience the dynamism of GOLD trade with the limited risk.

Maximum leverage and number of trade units vary depending on the account types.

List of number of trading lots by 4 account types of XM

You can earn XM points even from GOLD trade

XM points (XMP) applicable in Standard Account, Micro Account, XM Ultra Low Account Standard and XM Ultra Low Account Micro can also be obtained from GOLD trade depending on the trading volume.

XM Points can be obtained per 1 lot (GOLD 100 oz) round-trip in Standard Account same as Forex and upto 20 XMP (XM Points) per 1 lot.

3 XMP can also be exchanged into USD 1 worth of credit, therefore you can earn maximum about USD 6 dollars worth of trading bonus for GOLD 1 lot trade.

＼Open an account for free／Open an account with XM

Disadvantage of trade in GOLD with XM

The important feature in GOLD trade with XM is that GOLD trade bears minus swap points both in selling and buying position.

Even when you have selling position (short) or buying position (long), minus swap points arise in roll over (carrying position in the overnight).

Average spread of GOLD on Standard Account is 3.5 pips with XM.
The spread of GOLD is about 2 times compared with popular USDJPY or EURJPY in FX, still though it is about the same spread level as GBPJPY popular for its high volatility.
The conversion rates are moving all the time.

Though GOLD and GBPJPY and others are suitable for scalping for its large volatility, it is recommendable for medium to long-term trade taking the large spread into consideration.

GOLD trade is basically denominated in US dollars, therefore in order to work out the required margin for GOLD trade, you need to take USD/JPY price into consideration as well as GOLD price.

Required margin for 1 lot with 1:1,000 leverage by instruments in Standard Account

By utilizing 1:1,000 leverage in GOLD trade, you can start 1 lot trade with just about USD 200 margin. If you use Micro Account, you can experience dynamic GOLD trade even with a smaller margin.

GOLD trading hours with XM are different from ordinary GOLD trading hours. As rollover takes place on the change of day of week, there is the interruption of 70 minutes.

You will not be able to trade for those 70 minutes, please be noted. Also the market closes 5 minutes earlier only on Friday than other weekdays.

Trading hours of GOLD

For your information, the time shown on MT4/MT5 is GMT+3 for summer time and GMT+2 for winter time. Please be noted.

If you have not opened the trading account of XM yet, you can open it from here.
Application procedure will be completed within about 5 minutes and you can start trading of GOLD as early as 30 minutes.

FAQ

Is XM Point Program applicable for GOLD trading？

Yes, XM Point (XMP) can be earned by trading volume of Precious Metal CFD GOLD of XM.
For your information, XM Points you can earn are fixed at your Loyalty Status and the limit is maximum 20 XMP per lot.

Is there any limit on leverage for GOLD trade with XM？

No, leverage limit on GOLD is the same as FX and maximum 1:1,000.
Therefore it is quite easy for beginners to start trading volatile GOLD with minimal margin.

Conclusion

GOLD trade with XM is also available on the same trading tool as FX (MT4/MT5 or Webtrader).

In addition, maximum 1:1,000 leverage is also available, therefore inexperienced person for GOLD trade can start trading with the same feeling with FX.

＼Open an account for free／Open an account with XM