Category: GOLD AND SILVER FOREX BROKERS
Before we talk about Gold Forex trading we must know what Forex really is! Forex is acronym of Foreign Exchange. The foreign exchange market is the “place” where currencies are traded. Forex trading is typically done through a broker or market maker. As a Forex trader you can choose a currency pair that you expect to change in value and place a trade accordingly. Similarly in gold Forex trading you buy and sell gold and silver throughout the international market.
Gold and silver are precious metals which have a very rich historical background. Gold has long been associated with wealth. The use of gold as a symbol of wealth and status stems from the fact that it is not subject to the processes of degradation that occur in other metals. The value of gold is assumed to be constant, and because its accessibility is restricted, its value as a wealth item is preserved.
Silver on the other hand does not share this exclusive wealth status like gold, but its value stems from the fact that it is used in many metallurgical industries and as a component of the mint. Its use in minting coins as part of currency places it as a premium commodity, and again because accessibility to silver is restricted, its value is preserved.
Not all the brokers offer the service of trading gold and silver in Forex. An opportunity to trade gold and `silver, in addition to currencies, is allowing traders to monetize their forecasts about various precious metals (silver, platinum or even palladium). Although the spread for gold and silver trading is usually high and the leverage is low, it is always good to be able to trade these commodities whenever you have an appropriate market idea. Forex brokers usually use XAU/USD notation for gold contracts and XAG/USD for silver as a trading instrument.