Spread Betting on Gold

Spread Betting on Gold

Gold bars on dollarsIt is a well-known fact that when the economy is in turmoil, which it has been over the past few years; the price of gold will go up in value. The reasoning behind this is that Gold is seen as a safe haven in times of uncertainty, investors would much rather choose Gold in which to invest their money rather than the uncertainty of shares or the pitiful returns that interest rates can offer them.

Spread betting activity on gold has proved to be increasingly popular over the past few years and even though the economy is showing signs of coming out of recession, it looks increasingly like spread betting on gold will continue to be popular with spread bettors hoping to take advantage of the economic uncertainty.


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No.1 Spread Betting Broker for Trading Gold

One spread betting broker in particular who has come on leaps and bounds over the past couple of years is Spreadex.com.  They are the recommended broker for spread betting on gold.

They have been around since the year 2000 but few people would disagree that they didn’t exactly set the spread betting industry on fire with the service that they offered. They have though been making steady progress since then.

The financial trading platform was completely revamped in 2012 and Spreadex.com is now commonly regarded as a must have account instead of one that is just making up the number.

A mention should also be made of the fantastic sign up bonuses that are on offer for anyone who is thinking about opening an account, very generous and even more of a reason for considering using this broker for spread betting on gold.

Compare the Tightest Spreads for Trading Gold:

Igindex.co.uk – 0.5 points

CapitalSpreads.co.uk – 0.4 points

CityIndex.co.uk – 0.4 points

WorldSpreads.co.uk – 0.4  points

Etxcapital.co.uk – 0.5 points

Tips for Trading Gold

Trading in gold has been in existence for generations but with the advent of spread betting, traders can now benefit from the price movements without having to stump up the cash to purchase the gold out right.

When questioned, the majority of spread betting companies will agree that amongst all of their clients, the percentage who are successful can attribute that success to trading gold. That fact alone should confirm to you that this area of financial spread betting should most definitely be investigated further if you haven’t shown an interest already.

As an example of trading gold using Spreadex.com, let’s say that you are of the opinion that, due to various factors, the price of gold will fall. You decide to take a short position in the Spreadex Gold, Daily Futures market so sell at the quoted price which is 1730.0 – 1730.7 (selling at 1730) at £2 per point.

You were correct in your trading decision and when the market goes down to 1718.0 – 1718.7 you close the bet to take a profit of 113 points which equals £226 (£2 per point). Of course, if the market goes against you it will be a loss but it is of little wonder why more and more people are starting to see the attraction of financial spread betting on gold.

Adam

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Adam is an experienced financial trader who writes about Forex trading, binary options, technical analysis and more.

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