Trading spot gold is as simple as selling and buying gold at a spot price. Nut there is no existence of brokers or market makers in spot gold trading. Traders can buy or sell directly among themselves on an online platform. Fractional amounts of gold coins, ingots or bars can be sold in spot gold trading. This very thing makes this an affordable option for even small investors. One can venture into the world of spot gold by following a few steps.
Opening an account
There are companies that offer spot gold trading option. The very first thing to do is to open an account with such a company. Check the credibility before submitting all the paper works. Try not to choose companies that trade gold using exchange traded funds or gold funds. When you open the account with your selected company, ask for a demo account. Do your own job and learn the things that can be done on the platform. If there are any questions you need to ask, make sure to contact the customer care representative. While choosing the company, it is necessary to look for their customer service. You might need their help quite a few times during your stint.
The ask price and bid
The ask price and bid are two different but major things in spot gold trading. The bid price is the one with which you buy the gold. The ask price is the amount for which you sell your gold. The amount of spot gold varies a bit from city to city. Make sure t choose the city and then go for bid and ask price. Make good use of your demo account. Buy gold when you think the price will ultimately rise. Sell it if it feels like the price is going down. Keep doing trade until your losing trades are outnumbered by your winning ones.
Ones you gain enough knowledge and confidence to start trading, it is time to fund the account. Then you can just go on to trade spot gold (เทรดทองคำ, term in Thai) and earn. Make sure to keep a record of all your transaction for future tax records.
The benefits of spot gold trading
Spot gold is something that assures both buyers and sellers of the gold they are buying or selling. The platform provides a place for a price discovery mechanism that is transparent. This process is beneficial for an organized market that is comprised of formal and authorized players across the chain of gold value. It might encourage the unorganized traders and jewelers to get integrated in the formal system. Spot gold trading might become able to get rid of the unorganized sector. There are also options like gold ETFs which enable one to get different options to invest in gold than owing it physically.
There are things to know and learn about spot gold trading. Putting the right bid at the right time is the key to success. It will be easier to deal in this sector with better understanding gained through proper training.