If you’re looking to trade precious metals, it can be helpful to know a little bit about the history of these beautiful and valuable metals. The shiny, malleable material started as an ancient symbol of wealth and status, but now it’s used in everything from jewellery to electronics. This guide covers what types of metals are available for trading and some things you should keep in mind before you start trading metal.
Choose the type of metal you want to trade.
To determine the best metal to trade, you’ll want to consider the following:
- Gold is the most prevalent metal. It has been used as currency for thousands of years and is in demand today due to its rarity and value. Gold comes in many forms (including coins and bars), but it’s usually sold at a per-ounce price that fluctuates based on market conditions.
- Silver is second after gold when it comes to popularity among traders. Like its yellow counterpart, silver can be found in many different forms, including coins, bars and rounds; however, its value tends to stay relatively high because it is more common and sought after than gold is by investors worldwide.
Decide whether you want to sell or buy.
Regarding trading, there are two sides: the buyer and the seller. The buyer buys something with the hope that they can later sell it at a higher price. The seller sells something to buy back at a lower price later on.
If you want to make money from trading, decide if you wish to buy or sell first!
Select an exchange
An exchange is a website where you can buy and sell cryptocurrencies.
Exchanges come in various shapes and sizes, with varying features and fees. You’ll want to choose one that best fits your needs–for example, if you’re looking for low trading fees or 24/7 customer service support.
Check out the exchange’s features.
Before you start trading metal, you must check out the features of the exchange you’re using. Here are some things to look at:
- What types of trades are available? Are they standard spot trades or futures contracts?
- How does their trading platform work? Do they allow stop losses, limit orders and other advanced trading strategies?
- How secure is this particular exchange (and its website)? Is there anything about how they handle customer funds that makes you uncomfortable or nervous about using them as a broker for your metals transactions?
- What reputation does this specific company have with other traders in the community–what do people say about them online and elsewhere on social media sites like Reddit or Twitter?
Choose a portfolio strategy.
A key part of trading metals is diversification. You can diversify your portfolio by trading different types of metals or trading different metals within the same type.
If you have an account with a broker that only allows you to trade one type of metal in one exchange at a time (for example, just gold), then you must understand this limitation before investing any money in an account with them!
Stop Loss Orders
A market order is used to execute a trade quickly, but it can result in a loss if the stock price moves against you. A limit order allows you to buy or sell at a specific price, which can help reduce losses if the stock moves against your position. Use limit orders instead! By placing a limit order with your broker–in this case, telling them not only how many shares but also what maximum price per share before which they won’t buy more–you ensure that even if prices fall further than expected during volatile times such as these, no one hadn’t seen since 2008/2009 when markets crashed worldwide due mainly because people weren’t careful enough about protecting themselves financially so that nothing like that ever happens again.
Things to Consider While Choosing a Trading Platform
- You must decide whether you want to sell or buy the metal.
- Select an exchange that offers the type of metal you are interested in trading and its corresponding futures contract.
Check out the exchange’s features, such as margin requirements, trade volume and volatility, before deciding where exactly you would like to trade on their platform.