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Trading Gold: How It Works (2)


　　Gold is effectively a currency in the forex market. It is nearly always traded against the US dollar with the code XAU/USD. As a result, your strategy needs to track movements in the US dollar.To get more news about WikiFX, you can visit wikifx official website.

An increase in the price of the US dollar could push the value of gold down. So keep abreast of forex news websites for tips on upcoming trends and analysis.

　　Note gold trading hours on forex websites often run continuously around the clock. Key trading times around the world may vary, but the popular commodity is almost always available. Below weve detailed the crucial opening times and trading hours of some of the main gold exchanges.　　Note gold trading times may vary over weekends and holidays. And while not listed above, online gold trading hours in Australia, New Zealand, South Africa, Thailand, Canada, The Philippines, and Europe run almost 24 hours a day.
That‘s right, when you close a contract ’in the money‘, you win less than you risked. If you open a $100 binary contract, the best you will probably ever earn is $85. That’s a 1:0.85 risk reward ratio … it sucks!

　　Some binary options brokers may advertise they do a 1:1 ratio, so if you a win a $100 binary, you get your $100 back plus $100 in winnings. But the kicker is, they apply an admin charge for setting up the deal, which they will take from your earnings – forcing the setup back into the negative risk reward danger zone.

　　The harsh reality here is you are statistically going to lose your money with binary options.All binary option contracts are geared to make sure the broker wins everytime. They never offer an ROI over 100%, meaning you always must risk more than what you can potentially earn back. You must keep your win rate high otherwise the losses overpower the winnings.

　　It‘s not Really trading – It’s Classic Gambling

　　There are a lot of articles out there titled something like, ‘Are binary options gambling？’ Most of these articles are written by the binary brokers themselves who word things cleverly in their favor, basically describing how trading binaries is classic investing and it‘s what smart people do, there is strategy involved, and a whole other bunch of B.S. Don’t fall for it.

　　When we trade the SPOT market, we actually are physically getting involved by owning and converting global currencies. As tiny as our trades may be in the larger scheme of the overall Forex market – our trades will still have some sort of effect on the currency price.

　　We are actually a market participant and our actions are one small variable that determines where price will move.

　　Binary option contracts are really just pieces of paper, metaphorically speaking. You don‘t actually purchase any of the asset, it’s just a ‘gentlemens agreement’ between you and your broker.