The Hows of Trading CFDs via Gold


All throughout the years, gold has always been one of the most sought after metals that are traded from one country to another. Due to its value, this precious metal is dubbed as a symbol of richness, strength and fame. Tracing its historical background, the first ever gold coin existed in the Greek state of Lydia, Asia Minor during 560 BC. Following its usage and introduction, its usage as a form of currency became famous all around the world. Since then, many countries including  Rome and Venice created their very own gold coin called Ducat. In the United States, the American government forbade purchase and trade of gold in the early1900 because dollars were initially used as a tool to back up the value of US dollars. At present, individuals who are fond of trading CFDs are probably aware of gold’s possible effect towards their profit. To help you further your knowledge regarding CFDs and Gold Trading, we bring you the following bits of information.

Trading CFDs via Gold

Options for Trading Gold

The moment you wish to involve yourself into trading CFDs and gold, you have to familiarize yourself with the various choices for your trade.

1.Gold CFDs

If you wish to trade CFDs and gold at the same time then trading with gold CFDs should work for you. This merchandise is actually a contract but unlike other CFDs, this instrument has an expiry date and the returns for trading it shall depend on the change of rate during the effectivity of the contract.

  1. Gold Bullion

This is the ownership of physical gold such as gold bars and gold coins.  This type of ownership is usually used to purchase large quantities of oil with additional payments on transaction,storage and i surance fees. Value for this gold depends on its type of bullion and unit weight.

  1. Gold ETF

Exchange Traded Funds or (ETFs) are also financial instruments that can be bought from a trader or exchange.ETFs allow a trader to purchase a series of  securities and commodities even without purchasing a material asset. ETF are low cost instruments but their values are related to gold.

  1. Gold Swaps

This is an over-the-counter instrument, which involves cash flows based on a notional principal amount. Transactions for gold swaps are usually done by central banks and other financial institutions.

5 Tips to Get Good Returns when Trading Gold

1.Watch for the buying and selling activities of Central Banks.

  1. Read about the latest market news as they provide helpful details on trends and quotes.
  2. Follow trading blogs and subscribe to newsletters.
  3. Open a demo account on your target gold trading instrument as they will help you rehearse your strategies prior to real trading.
  4. Join trading courses and read  PDFs.


Trading gold via CFDs and other instruments does not really have a perfect formula to gain great profits. Your success plainly depends on your expertise and dedication to devise and strictly follow your trading plan.

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