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.
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 .. ..
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.
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.