Welcome to Gold and Silver trading with Alfa

Welcome to Gold and Silver trading with Alfa Online Gold and Silver trading offers a great alternative to currencies and indices for traders looking for both long and short term investment opportunities. In the Forex market, gold and silver are considered as a currency, whose prices are always expressed in terms of the US dollar.

Online trading in gold and silver is similar to trading in Forex. Their price is determined by the supply and demand as any other financial instrument or derivative and price is measured by their weight, usually per ounce (oz). The price of gold or silver quoted in ounces, shows how much it costs to purchase one ounce of gold or silver in US dollars. Spot gold is traded under the symbol XAU and spot silver is traded under the symbol XAG.

For example, if XAU is quoted as1068.12, it means that an ounce of gold is traded for 1068.12USD.

Factors that determine the price of Gold and Silver:

  • Purchase and sale of government gold and silver reserves
  • Industrial demand for use in electronics, mirrors, etc.,
  • Demands from the jewelry market.
  • Demand from the speculator market.

Gold and silver are also traded in the Futures market, where a buyer agrees to receive the delivery of the metal on a predetermined date in the future. However, only about 1% of futures contracts traded result in delivery. Traders generally liquidate their positions before the maturity date of their contracts.

Trading unit:

Gold Futures: Trading takes place in lots of 100 troy ounces (1 normal lot).

Silver Futures: Trading takes place in lots of 5,000 troy ounces (1 normal lot).

The Gold and Silver Forex market is an over-the-counter market (OTC market), meaning that there is no central market; and transactions are conducted via telephone or the internet by a global, decentralized network of banks, corporations, importers and exporters, brokers, traders and other enterprises systems, which are interconnected by computer and communication networks, including the Internet. This is in contrast to, for example, the Dubai Gold and Exchange (DGCX), which is a centralized trading location. Although New York and London are the biggest marketplaces for gold and silver, buying and selling happens 24 hours a day, 5 days a week, as there is no central marketplace. The prices of Gold and Silver are an important driver of the forex market and affect the currencies.

Advantages of Gold and Silver Trading:

  • 24 hour market: the Gold and Silver market like the Forex market operates 24 hours a day, 5 days a week, which means that you can trade during breaking news and major events without waiting for the market to open.
  • Access to the largest financial market in the world, with over $3 trillion traded daily, providing you with unmatched liquidity.
  • High leverage/ low margin requirements - offering traders leverages of 100 to 1. This means that for every $1000, a trader controls $100,000 worth of contracts.
  • Potential for profit making in both falling, as well as rising market conditions
  • Access to global markets

Other advantages include:

  • Low transaction costs - Commissions as low as $30 per round-trip trade
  • Ability to make profits in any market – whether rising or falling
  • Powerful charts and tools to help with your technical analysis
  • Free practice account to help hone your trading skills and perfect your strategies before jumping into the trading arena.
  • Trade online from anywhere in the world

Try Gold and Silver trading today

At Alfa Financial, we believe that an educated investor is a confident investor. Given the risks involved in online trading, we are committed to provide all the information you need to be confident that online Gold and Silver Trading is right for you. Open a free practice account with AX1 Trader Demo both to educate yourself in simulated trading conditions. AX1 Trader Demo is easy to access and will allow you to practice trading, without risking any money. You get a simulated trading account with $25,000 cash balance which allows you to:

  • Practice buying and selling of Gold and Silver - both spot and futures
  • Practice trading in a variety of additional instruments such as, spot CFD's, futures, indices, currencies, etc.
  • Trading in global market from the comfort of your home
  • Practice building your own online portfolio with a variety of instruments

Risk Warning

Trading in the Foreign Exchange (Forex) market might bestow potential rewards, but it also bears potential risks. You must be aware of the risks and be willing to accept them in order to trade in the foreign exchange market. Do not trade with money you can't afford to lose.