|CFD Forex||CFD on metals||Stock CFDs|
CFD on metals
Similar to trading currency pairs, spot metals give opportunities to take a long/short position in gold or silver, meanwhile taking the opposite position in the USD or other major currencies.
As a result of their particular role in the economic system, metals, especially GOLD, are regarded as financial assets. Spot metals trade on a 24-hour market, though trading hours launch an hour later than currency trading.
Regarding supply and demand forces, which set up prices of metals, we should emphasize that they are well identified, though their mass of components makes the analysis more compound, as investors should take into consideration not only global drivers, but also political and social situation in producing countries, technical considerations, official sales, due to financial incentives.
Valuable metals provide great diversification benefits to investors, as they may react differently to the risks, which globally influence financial markets.
Few Reasons Why Traders Choose Spot Metals
- Diversifying portfolio: Investors take the benefits of spot trading as an active asset class in a bigger and rational trading portfolio.
- Hedging opportunities: Trading spot metals establish great opportunities for hedging in a very liquid market, with investors gaining more exposure with limited risk.
- Safe investment: Spot metal trading is a save heaven when the Forex trading market is in confusion and also a safety precaution against the inflation.
See below the trading instruments:
|XAGUSD||Silver quoted in US dollars|
|XAUUSD||Gold quoted in US dollars|
|XAGEUR||Silver quoted in euros|
|XAUEUR||Gold quoted in euros|
|XPDUSD||Palladium quoted in US dollars|
|XPTUSD||Platinum quoted in US dollars|