Why there is big spread in Gold?

[joget]

when compared with the major currency pairs, gold has spread so much higher, but gold also has a daily range is much higher too, so it is indeed comparable. but the equity required to trade gold is pretty high, so it is not recommended for those with limited equity.

[ishvara]

I do not know about the reasons that it is like that, but the main thing that i have noticed is that the most volatile pairs have the highest spreads. Maybe this is why gold spread is high, gold is too volatile.

[AffiliateTurbo]

its because of the bigger moves in a day, so the can spread the positions little bit more!! its only a matter of the webtrader you will choose!! i know some higher and lower pips, in gold as a pair!! maybe you must be more sure if you go in the market with a gold position!!

[naziafarhan]

Gold is a precious metal and it is the most risky trading material I think to keep aloof the new traders from the risky material and to trade then with safety there is a high spread. And You may have many other commodities have a commission in the instafx.

[sachin]

Gold has a huge movement in a particular day and many traders love to trade in gold and that is the reason brokers have more spread in gold so that they can earn more as well and also traders who trade for short term or scalp need to think twice before they do so.

[yaar]

well gold may be having big spread, due to its demand, but compare to its movement or market volatility, the spread is relatively comparable to other currency pairs in my opinion. So i dont feel any difference trading it and currency pairs like EURUSD, GBPUSD

[netra]

Gold k elawa b kuch pairs aisy hen jin main spread bohy jyada hy, mery khyal sy gold main spread ic lye b jyada hota hy k gold ki movement boht speedy hoti hy agr spread 3 pips ho tu mostly log ic main scalping krna start kr den.

[jmsblack18]

I noticed that usually currency pairs have 2-3 pips spread but in gold it is biggest 10 pips, do you know why so. Bt i do love trading in gold despite this huge spread there is good opportunity to make profit.

The spread is connected with liquidity. The bigger the liquidity and prospect to gain money the bigger spread in there. As i know the gold is most searched investment so many people throw themself in. That is make the gold have bigger spread to selected only people who have big money to get in.

[sumonmia0526]

I heard from another trader who said that they gold has huge profit and easy trading I do not now trading with it now I'm just trading with EU. I think that the reason big spread in gold depending on the broker

yes gold have a chance to make lots of money coz gold trading is very popular and very much profitable ..but the thing is trader need lots of margin for trading gold .the spread for gold is set different from broker to broker in instaforex we are seeing 10 trick size means 100 pip means 1$ of gold change .soem ahving lwo spread and some having more than instaforex spread

[kutuk]

so far I have never tried to play in the gold trade despite the people who have ever said playing in the gold trade is very advantageous especially for the long term because of possible gold price would rise each year. is not well......