Trade Metals CFDs with FP Markets
FP Markets allows trading the spot price for metals including Gold or Silver against the US Dollar or Australian Dollar as a currency pair on 30:1 leverage.
Open a trading account with FP Markets, and you will gain exposure to the available global market prices on trading gold CFDs and silver CFDs. Trading metal CFDs with FP Markets, an Australian-regulated, multi-award-winning broker.
What is the Best Platform to Trade Metals?
Discover the benefits of trading Metals on one of the most powerful trading platforms available, MetaTrader 4 (MT4). Available across desktop and mobile platforms the MetaTrader 4 platform is ready when you are.
6 Reasons to Choose FP Markets
An Australian regulated Forex broker
An Example of
Leveraged CFD
Trading
Suppose you want to trade CFDs, where the underlying asset is the XAUUSD a Metal, also known as Gold vs US Dollar. Let us suppose that the XAUUSD is trading at:
You decide to buy 100 oz of XAUUSD (1Lot of XAUUSD) because you think that the XAUUSD price will rise in the future. Your margin rate is 5% (Account Leverage 20:1) . This means that you need to deposit 5% of the total position value into your margin account.
Now, in the next hour, if the price moves to 1792/1792.50, you have a winning trade. You could close your position by selling at the current price of 1792 USD.
In this case, the price of gold moved in your favor. But, had the price declined instead, moving against your prediction, you could have made a loss. This continuous evaluation of price movements and resultant profit/loss happens daily. Accordingly, it leads to a net return (positive/negative) on your initial margin. In the loss scenario where your free equity, (Equity - Margin) falls below the margin requirements (8950), the broker will issue a margin call. If you fail to deposit the money, and the market moves further against you, when your free equity reaches the 50% of your initial margin the contract will be closed at the current market price, known as “stop out.”
Metal Spreads
Why Trade Precious Metals with
FP Markets?
Precious metals are among the Top Commodities To Trade Metals are classified as a hard commodity as they are mined from the earth or extracted from natural resources. Through Contracts For Difference (CFDs), you can gain exposure to metals markets in a unique way that provides a wide range of advantages.
Margin Trading: As CFDs are a leveraged product, you can open large positions by depositing only the margin required. As metals such as gold have high levels of liquidity, commodities trading offers higher levels of leverage than many other tradable instruments.
Go 'Long' or 'Short': One of the main attractions of CFDs is the ability to speculate in both rising and falling prices. The ability to open short positions and benefit from falling prices is a unique aspect of CFD trading and one that creates additional trading opportunities.
Risk Management: Advanced trading platforms such as MetaTrader 4 and MetaTrader 5 offer excellent risk management tools. Their features include a large range of charting tools but also a multitude of order types and alerts to ensure that you are made aware of any changes to market conditions.
Benefits of Trading
Precious Metals
Metals CFDs: As you do not have to not actually own the underlying asset when trading CFDs, there are fewer costs associated with investing in metals this way. There is no need to store the asset and traders can benefit in both rising and falling prices. The prices are comparable to those found on the London Metal Exchange (LME), the world's largest market for ETFs on base metals and other metals.
Portfolio Diversification: With limited correlation to other financial instruments such as stocks and bonds, trading precious metals is a useful way to diversify your portfolio.
Hedging: Precious metals are often used as part of a risk management strategy. Investors often trade metals to hedge against inflation and currency.
Safe-Haven: During times of economic uncertainty, the value of precious metals tends to rise. This has historically been the case during economic slumps and key political events including major elections.
Metals Trading
- FAQs
With respect to Metals CFDs, Gold is the most traded commodity. Platinum, palladium and silver are among the other most traded metals. They can all be traded with FP Markets. Find out more about Investment Strategies For Metals.
As indicated by their name, precious metals are indeed that. They are rare which prevents the prospect of excessive supply and have an infinite lifespan as they do not rust. The fact that they are measured in troy ounces makes it easy to compare their value.
The History Of Metals dates back thousands of years. Apart from being a medium of trade and exchange, precious metals have been considered as a long-term store of value for an extended period of time.
Some of the factors to consider prior to investing in precious metals include the current geopolitical situation, that state of the US dollar, the position of central banks and inflation rates.
To get a better understanding of this asset class, read our guide on Investing In Precious Metals.
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