Q.O.D July 12
Q: What are some of the choices I have to trade gold? It’s been volatile of late and want to explore the opportunities there. I mostly trade currencies now but want to explore other trading opportunities when the currencies aren’t active.
A: For sure gold is an interesting instrument to trade. It provides the volatility needed to create opportunities with trading vehicles that provide adequate liquidity to keep you safe. Take a look at a few of these so you can start your due diligence:
Gold ETF, (Ticker: GLD): One of the more popular gold trading etf’s with plenty of liquidity thanks to lots of day, prop and hedge fund traders.
E-mini Gold Futures (Ticker: MGC): Provides an avenue for e-mini traders to play this e-micro product. Traded on the CME exchange gives that level of comfort and transparency worthy of consideration
Gold options (using the GLD ETF): Options are not for everyone but allows the trader an alternative who wants to introduce themselves to gold opportunities and not expose them to the $130+ price tag of the ETF and who may not have access to the futures market.
As with any trading, be sure to do your due diligence and learn all the tricks of each instrument before giving it a go in real dollars. Most platforms allow you to trade in simulation during your learning phase and you certainly should have that as a rule in trading business. Prove yourself first in a free simulated environment before becoming a part of the gold rush bandwagon.
