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.
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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.
You may think gold has high spread so it will be easy to make huge profits. You are wrong my friend. We need huge equity to trade in gold and the huge spread can lead us to huge loss too. You must never forget that my pal if you are true trader.Quote:
Originally Posted by yogesh
Yes, gold has high spread when compared with major currency pairs. Because, its movement is huge per day. So, you have chances to get huge profit. So, they set spread high for gold. Gold is not suitable for scalpers, its suitable for longterm traders only.Quote:
Originally Posted by yogesh
es ka mugh ko itna ilm to nahi par jahan tak mera zahen kaam karta ha k es ki waja ye ha k ek to gold ki price dosri her cheez se zziyada ha or es ki values kafi up down rahti hane es se kafi loss or kafi profit app kama saktey hoQuote:
Originally Posted by yogesh
brokers earn money from the spread. since gold is one metal which everybody loves to trade naturally brokers will fix more spread on this commodity. and the spread also fluctutes in high volatile periods for example when it is trending upwards, the spread will be minimum if you sell
Gold makes more movements in a day and it requires more capital to trade in gold because of its spread and since the liquidity and volatility is more in gold the spread is higher.
Gold really has volatile movements and a lot of investors to trade in these commodities, gold commodity is a favorite for those who have big capital because they are able to withstand large floating a result from price movements every day, we know that the average daily movement of gold has a range up to thousands of pips .. ..Quote:
Originally Posted by yogesh
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.Quote:
Originally Posted by yogesh
The spread in gold is not 10 pips, it is 100 pips. The spread is that way because of the volatility of gold. Gold can move 1000 pips in 1 hour so people can easily make profits from it. Also the spread is not really in pips, but in cents, because gold is measured in terms of the US Dollar.Quote:
Originally Posted by yogesh
i dont know why the gold have a big spread..
but this big spread make it different to other pairs.
may be this due to big demand of gold...and other thing that we all know that gold give a high return if we are going to invest for long term.
Yes you are right but as per my opinion if we buy or sell 1 lot of gold which is equal to 1300$ may be and spread is equal to 1$ only which is easily recoverable and you can earn high profit in it.Quote:
Originally Posted by s19
i agree with you that we can made a good and hug profit in gold...spreads not effect more..Quote:
Originally Posted by 100c°
but there is only one term..market will 100% move according to our trade direction..if its go opposite then result is so bad..may be we got margin call.
if we have a hug margin then no need to warry...
Well you got a good point - if we have enough money to buy at lower level if they happens we shall have more and more potential of making profit, also we need to be ready to keep our positions open for mid to long term, i mean months to year.Quote:
Originally Posted by s19
es ka mugh ko itna ilm to nahi par jahan tak mera zahen kaam karta ha k es ki waja ye ha k ek to gold ki price dosri her cheez se zziyada ha or es ki values kafi up down rahti hane es se kafi loss or kafi profit app kama saktey ho
if we see gold movement in bigger time frame, we may think that gold only about buy and buy, cause the graphics only showing the rising chart, but if you change the TF into the smaller one, you will see the same pattern like the currencies has. it also contain high and low. Gold have a very slow movement but stable for the long term. cause this reason, many traders choose not to trade gold. the more rare a currencies/ commodity to be trading, it will raise up the spread. so, big spread not only happened to gold but to all currencies and commodities that don't have an active trading session.
Yeah there are often sharp moves and if trade opened at right time at right price these 10 pips are covered in few moments and can show good profit even in minutes - and to avoid losing account due to volatility i avoid using higher leverage often.Quote:
Originally Posted by sathish999
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
Gold makes more movements in a day and it requires more capital to trade in gold because of its spread and since the liquidity and volatility is more in gold the spread is higher.
Gold commodity me aata hai aur iski movement kafi zada rehti hai ..ye koi currency pair nahi hai to hum iske spread ko kisi curency se compare nahi kar saklte..
commodity ka apna hisab kitab hotah ai aur currency pair ka hisab kitab apna hota hai
In trading gold there is huge possiblities of gettinf huge profit. As its movement is faster then currency pairs and also many many people do trade in gold. Therefore the broker set the Gold spreads high as they earned from spreads.
Gold is a costly product so gold gives a big profit and loss, I like trade in gold because you can earn handsome profit in minimum time with small investment but grater than currency gold is very popular also.
trading in gold should have a large margin resilience because gold is very difficult to climb down again so likewise vice versa. and trading in gold is a long-term investments such as foreign currency can not in 1 or 3 hours onlyQuote:
Originally Posted by atif58
The spread in gold is big because the commodity is quite volatile. Commodities usually have big spreads though. The spread in gold is usually a measurement in dollars and it is 1 dollar. Gold movements are measured in cents and not in pips like we naturally assume.
There are good movements in Gold and good benefit for trading and make profit.Gold is favourite for beginners and fast money making traders.
Obviously it is not gold that you are talking about. Most major brokers give a 100 points spread on gold. This means that as soon as you open a position on gold, you are already 100 pips down. This is why you require a large amount of equity to trade gold really profitably.Quote:
Originally Posted by assi
maien aaj tak aisa koi bhi broker nahi dekha jo ki kisi bhi pair me 100 pips ka margin leke chaleQuote:
Originally Posted by aadrika
mere khayal se apko galat fehmi ho gayi hai..gold me 100 pips ka spread kabhi nahi dekha maine..aur agar aapne kabhi dekha ho to mujeh zarur bataieyga kyunki 100 pips bahut zada hote hai...aise me to koi bhi trading nahi kar sakta gold me,
gold aur silver dono hi bade metal hain aur ye kafi mehange hote hain aap original me gold ko kharid ke 1 din rakh sakte ho aur dusre din daam jyada hone par bech sakte ho us ke bich me bhi same spread aaega. sayad is liye iske bich itna spread hai.
gold moving fast thats why it has big spread its can be up to 0.75 cents between bid and ask price but its normal and when we are talking about 0.75 cents in gold its mean not that big spread
jis tarhan say gold ma profit nazar ata ha isi tarhan sa loss bhi utna hi ho jata ha.Its not easy to trade with gold If you think k ap sahi proffessional ho gayay hai. nd market k ups and down sahi sa jantay hain to ap zaroor gold ki trade kero.but bohat risky kaam ha.
i think gold is most profitable and so many invest in gold for long term trading so brokers have kept 100**** for the gold as spread as they can get more comission as more people trade gold and even no onee put an pbjection if they charging taht much spread also so thats why i think spraed is high
i also have the same question. why gold has high spread. it is the most lucrative commodity beside oil. if the spread is low, then a lot of trader will trade it. happy trading
Yes, you are right, gold is so much expensive so it spread is also very big. Nowadays one ounce gold costs $1730 so for 1 lot $1 spread is not too much as compared to its price.Quote:
Originally Posted by bonuslover
I think the gold will be exposed to a large spread because there are differences in spreads gold about 100 points and a number different from the others, but it is also comparable with the profit if you know about trading gold. advantages can be obtained with great because the movement of the volatile.
Personally, i do not know why most forex brokers keep a very large spread in gold commodity. Most brokers have a spread of 60 - 100 pips in their gold commodity. I guess it is special and makes a lot of money and that is why brokers keep the spreads that high.Quote:
Originally Posted by yogesh
es ka mugh ko itna ilm to nahi par jahan tak mera zahen kaam karta ha k es ki waja ye ha k ek to gold ki price dosri her cheez se zziyada ha or es ki values kafi up down rahti hane es se kafi loss or kafi profit app kama saktey ho
Even though the spread is 1$, you should note the volatility of Gold can make that 1$ spread run into a loss of $1000 if you are on the wrong side of the trade. In a contenst that I participated in sometime ago, I traded gold and using 2 lot size and the account got blown because gold moved over 5000 points in less than 1hr.
In trading gold there is huge possiblities of gettinf huge profit. As its movement is faster then currency pairs and also many many people do trade in gold. Therefore the broker set the Gold spreads high as they earned from spreads.
yes the big spread of the gold is due to its demand.but gold trading requires more capital.and i heard that trading in gold is not safe like trading the currency pair...i don't know whether it is true or notQuote:
Originally Posted by mayengbam
I think it is due to the volatility that is why you need big money to trade gold.I have a friend who trades gold but he uses micro lots and he likes the profit because of the volume.I think the spread is 100
All precious metal demand day by day increased. Among them Gold is very much. Many people stock the gold for future. In Forex Gold trader a large number. For this it's high liquid. Where we can not a single country because day by day world going to risk. Gold price depend on USD price. If we stock the Gold. It's save. In Forex many trader earn money by using GOLD/USD pair. It's reliable and high liquid so that it attract very quick.