Gold as a Safe Investment

 Investment in precious metals has been attracting traders in the past. The most famous investment among these is gold. For diversifying risk, primarily through the use of derivatives and futures contracts; traders buy gold. Like other markets, the gold market is subjected to volatility and speculation too. It is comparatively more effective and safer than investment in different precious metals and is traded across the world. 

Investors looking for gold investment have three choices: 

1) They can buy stocks of the mutual or exchange-traded fund (ETF) that clone the rate of gold. 

2) They can trade in the commodity market by buying or selling futures and options. 

3) Last but not least, they can buy a physical asset. 

For example, moderate investors purchase gold coins, while advanced investors try to implement strategies by using the options on gold futures. 

 Buying gold bullion

As compared to other commodities, gold is readily available to moderate traders. An individual can buy gold bullion (the yellow metal in the form of a bar or coin) quickly from a metal dealer or brokerage firm and bank. 

Bullion bars come in different sizes ranging from a quarter-ounce slice to a 400-ounce block, but the choice of coins typically depends on the new trader. One should not get confused with the vintage numismatic coins; these are issued based on their gold content, plus a premium range between 1% and 5%. 

The most widely circulated gold coins include the American eagle, the Canadian maple leaf, and South African Krugerrand. People prefer these gold coins because they carry maximum liquidity with them. 

Gold is often blended with other precious metals and gems to increase the overall appearance and value of making jewelry. Gold jewelry is passed down to the succeeding generation as a family heritage. It adds sentimental value to it, which is beyond its price. But, when purchasing it as the investment medium, it is the wrong choice because its retail price in the future generally exceeds the meltdown price. The change in the two prices is because of retail mark-up and quality. 

An investor needs to check the purity of gold before purchasing jewelry, to ensure that you are paying for and getting the correct karats of gold (18 karats or 14 karat pieces). 

The only advantage associated with gold jewelry is its insurance policies for the homeowner, which he gets if it is lost or stolen.

Whatever might be the option you choose, make sure that you buy from a trustworthy and renowned dealer either through the internet or in person. Along with this, the safety of gold coins is also essential. For this, you can prefer home or bank but don't forget to check them frequently. 

Other Investment vehicles

Some of the investment vehicles for gold are: 

1) Investment vehicles

2) Bars and billions. 

3) Coins

4) Gold rounds

5) Exchange-traded products

6) Certificates

7) Accounts

8) Derivatives, CFDs, and spread betting

9) Mining companies

Hedge against financial stress

Like other precious metals, gold works as a hedging instrument against a deflation of currency devaluation and inflation. However, some questions have been raised on its efficiency as such. Historically it has not proven its reliability as a hedging device.

One of the attractive features of gold is that it has no default risk. Whereas, one can see the condition of currencies used across the world. They are under critical pressure because of substantial government deficits.  

Factors influencing gold investment

Like other commodities and shares, gold prices are driven by demand (also including speculative demand). However, unlike other products and stocks disposal and saving play more significant roles in influencing, its cost than its consumption. 

The quantity of gold ever mined still exists in forms such as mass-produce- jewelry and bullion, with a small value over its fine weight. So, it can come back to the gold market anytime as it is almost as liquid as bullion. 

As per the estimated data of 2006, the total gold ever mined was 158,000 tonnes (174,000 short tons; 156,000 long tons). Warren Buffett, a famous investor, has said that the total amount of gold available across the globe could fit into a cube with sides 66 ft. or 20 meters. The approximate volume it can hold is 158,000 tonnes as the density of gold is 19.3 tonnes per cubic meter at room temperature. However, these estimates vary significantly in today's gold market. 

 It is predicted that the quantity of gold stored above ground is far more significant in comparison to its annual production. Its prices are mainly affected by changes in sentiments; it influences the market demand and supply, rather than yearly production. As per the World Gold Council, the annual production of gold is nearly 2,500 tonnes since the past few years. About 500 tonnes goes to exchange-traded gold funds and retail investors and the rest 2,000 goes into dental production, jewelry, and industry. 

Bottom line

Commonly, gold stocks increase and slide quicker than the price of gold itself. So, one should be aware of these changes. The best way to start investing in gold is by selecting the best broker who can guide you throughout the trade by providing real-time analytics and price graphs. 

You can go with HFTrading. They are market pilots in the field of online trading and have advanced platforms (Meta trader 4) for making your business easy-going. They provide three main accounts for trading in precious metals: platinum account, gold account, and silver account. 

Futures and options trading

 What are futures and options?

Futures and options are principal types of financial stock derivatives and are used while trading in the share market. They are like a future contract or agreement signed between two parties for buying and purchasing an asset at a predefined price but on a later date. 

These agreements try to eliminate the risk involved in stock market trading by deciding the value beforehand. 

They acquire their value from the underlying asset in the stock market. This asset can be share market indices, shares, ETFs, commodities, and many more. In the stock market, one can set a predetermined price to avoid future risk; but still, it isn't easy to predict price movement, and this can cause substantial losses and profits if the prediction goes wrong. 

Thus, individuals who are experienced and well versed in the stock market operation typically participate in these kinds of stock trades. 

Investors practice futures and options trading on leverages. It is a stipulated percentage of the aggregate contract value provided by the trader. With this traders can enter any trade without paying the huge amount assigned with the share or stock. For this, one needs to keep a minimum amount or mark to market value in his account before starting. It helps in increasing the profit margin of traders substantially. 

More about futures: 

There are three fixed periods in futures trading:

1) Current Month contract

2) Near month contract

3) Far month contract

All future agreements expire on the last Thursday of the month. Here month refers to the expiry month of the contract.

Difference between Futures and Options

The point wise difference between futures and options are as follows: 

1. Definition- 

• Futures: Future is a contract in which both buyer and seller agree to buy or sales on a predefined date at a fixed price. 

• Options: It is an agreement in which the trader gets the right to sell or purchase the financial token at a fixed price with no time boundation.

So the significant difference is that Future contracts are binding, once signed by an individual, he cannot deny paying on the expiry date. Whereas, if one thinks that deal is not profitable, he can refuse to buy shares on the expiry date in case of options. 

2) The obligation of buyer- In the futures, there is an obligation to execute the contract whereas in options no such requirement applies. 

3) Risk factor- Futures are riskier than the options for the seller as well as the buyer of futures. In the case of options, this risk is limited to the premium amount paid. 

4) Advance payments- In futures, one has to pay only the breakage amount apart from this amount no advance payment needed whereas, in options, one needs to pay a small premium amount before activation of the contract.

5) Degree of profit and loss- There are no limits on profit and loss in futures, but in options, there is limited loss with unlimited gain. 

6) Usage- Both futures and options are widely used for speculation and hedging on the market such as a commodity, stocks, currency, stock indices, etc. 

7) Closing the contract- One can close the deal or agreement by paying or delivering the price differential or by gaining an offsetting position, in both futures and options. 

8) Obligation to performance- It is for both individuals in the case of futures, and in the case of options, it is just for option writers. 

9) Settlement- Traders make daily settlements in the futures. In options, writers of contracts gather premium on the next day of the trading day. 

10) Derivative- Future shows linear payoff, whereas in options price is always positive. 

Types of Futures and Options: 

The rules for buyers and sellers of the futures contract are the same. For options, these rules are different for both parties. 

One has to sign a put option contract if he wants to enter a trade to sell a particular commodity or asset at a pre-asserted price in future time. Similarly, if one wants to purchase a specific product or asset in future, he has to sign a call option contract to lock the exchange price in future. 

Final words

Futures and options trading seems simple, but they are equally risky. Prediction of the correct price movement is essential. Go through various fundamentals like underlying assets, issuing organization, stock market, etc., before entering derivative trading. 

Once the foundation is ready, you can avail the unlimited profit advantage of futures and options. 

If you are a novice and searching for the best broker for trading in futures, then ETFinance is the best option. They provide a trading service with zero commission fees. They also have advanced tools which display real-time stock information.

How to do forex trading in Thailand?

Thailand is known for its natural habitats, beaches, eccentric tourist spots and shopping destination inhabiting renowned brands. It accounts for almost 9 to 17.7 per cent of the country's GDP. Besides, it is the leading South-East Asian market and taking significant strides in being one of the Forex hubs. 

Forex in Thailand: Regulatory authorities

TSEC, The Thailand Bank (BB), BOT (Bank of Thailand) are some significant and robust bodies that regulate and encourage private retail investors to invest in the foreign exchange market by demonstrating exuberance and taking calculative risks. 

Preparations needed for forex in Thailand

It is the foundation that leads to success in any stream. Here are a few steps that will initiate the set-up of profitability in the financial market while trading forex in Thailand:-

Uninterrupted internet connection:- An internet connection free of latency helps in smooth conduct and connecting with the broker. It establishes an unbreakable bond that helps in executing strategies before an eye blinks. The factors of profitability alter even in the hundredth part of a second. 

Choose a broker: Picking up a broker for trading forex is the second most essential step. For example, Oinvest is one broker that renders its service in Thailand. An Oinvest review would give more details about the online trading provider and its regulating bodies, as that's vital. Prominent brokers adhere to the regulations and rules of international organisations.

How to do forex trading in Thailand

Attach your bank: After confirming the verification process, one needs to connect his/her bank with the broker account. 

Deposit the funds: Post affirming it with the bank, investors can use debit/credit cards and other modes to fund their accounts. However, brokers present several options to their clients for deposits and withdrawals.

Trading software: The world is shrinking in a mobile phone. So, for trading anywhere and anytime, a mobile app and software should be there in a system and smartphone. The technology tells the ways to communicate in the forex market for reaping benefits. Their use interface mitigates the issue of errors that may occur while driving an input or bidding. 

Start bidding: After setting up all the necessities, start trading with the help of tips from brokers, experts and analysts in the forex market.

Terminologies for forex in Thailand

Calls: It is a contract that seems to be moving along with the rate of the underlying currency, but it isn't the case exactly. 

Lot size: It represents the size of one's investment in any instrument. One hundred thousand units of currency is a standard size lot. 

Pip: It is the tiniest motion in forex, which amounts to $0.0001. 

Orders: Buying and selling of entities on a platform through the process of bidding is an order. 

Binary options: The binary option may not move in the same way the price of the currency it follows. Traders check their proposition before taking a plunge in trading or going against that. 

Short selling: In short selling, one needs to sell equities or stocks. Once it reaps profit, a trader repurchases them at a lower price.

CFD (Contract for difference):  It is a contract that tracks currencies, where the trader does not own them and earn through the difference of the underlying prices of entities. 

Emerging market: Forex in Thailand

Foreign currency exchange is an integral part of Thailand, as tourists from across the globe land here and convert their money into the local currency Bath. The country boasts of 250400 USD Million as forex reserves (July 2020). 

Wisdom words: The global forex transaction has surpassed $5 trillion a day. It is one instrument that helps channelise trades in the world. Hence, it has enormous volumes, fluctuations and frequencies. Traders can read reviews of various brokers like Oinvest review to decide on their choice of broker. 

How to trade forex CFDs?

 The acquired right to accept the variation between a closing and opening price of an investment period may be understood as CFD. In other words – when trading a CFD, you merely exchange the difference in the asset price from the point at which the contract opens to the point where it is closed. CFDs make speculation on price movements in either direction possible.

There are a number of advantages to forex CFDs.

·         You can access quick gains through leverage.

·         Fees are lower than trading warrants

·         Profits are nearly assured with the change in prices

·         It is possible to start trading with a very nominal initial amount

·         There being little effect of volatility on pricing and next to no loss in time value CFDs are superior to warrants.

·         CFDs can be traded similar to stocks.

100,000 euros can be traded with a physical 100 euros.

CFDs are a differential business. These were invented to circumvent the stamp duty to the tune of 0.5 per cent that were levied on all stock transactions on the LSE. This led to the establishing of CFDs as an instrument of hedging.  With minimum possible capital input, investors sought the hedging of an investment input.

CFDs are popular at bourses around the world. Forex CFDs have quite a fan following. That’s become a given, not hard to understand considering CFDs also profit from falling prices.

CFD against Futures

CFD futures are fair and transparent. However, investors need to have a substantial capital before they can venture through that instrument. Plain Jane CFDs however are a whole different ball game. Their affordability kicks them up a notch for small account investors.

Forex CFDS have very tight spreads, which makes for great profitability. These spreads are actually higher than those in obtained n futures.

A further juxtaposition with futures enlightens us further. When we see that, while trading futures you are expected to cough up sums to the tune of 20 or 30 euros for each and every transaction, trading CFDs does not lead to the incurring of costs. Matter of fact, trading costs are non-existent on CFDs.

Trading with CFDs

In the course of trading with CFDs, rather than make a direct investment in the market, investors speculate on underlying market price movements. CFD trading allows you to invest in volatile market. You an open either long, or short positions.

For instance, on deciding to invest in blue chip shares and the revealing of a price decline subsequent to an analysis, you may open a short position on those blue chip shares. Below the point you set, you then gain on every point every time the blue share falls.

Keeping in mind that CFDs are leverage products. As such, in the event of the market moving against you, for every point the markets move against you, you are condemned to lose a plethora of shares.

When trading Forex CFDs with a good broker, you have access to a wide range of markets. It is best for a novice investor to do business with a broker offering competitive prices across the global markets. The broker should have his fingers in indices, stocks, currencies as well as crypto currencies. Niche as well as benchmark markets ought to be the forte of such recommendable brokers.

CFD Trading Is As Safe As You Make It

It is said that the leverage effect can lead to massive losses. However, the onus is actually on the investor to steer clear of treacherous waters.

CFDs are just the buying and selling of equity like products against a margin deposit. This means the investor has only a fraction of the entire sum. For instance, on the position size of the CFD being USD 5000, the buying has an expense to the tune of USD 1000. We need to factor in a 20% security as well. The remaining USD 4000 are financed courtesy the broker. In the event of the underling price rising by 10%, the CFD position appreciates to USD 5,500. There would therefore be a 50% rise in capital, them having expended actually only 1/10th of the same.

It is best that you ensure position has no effect on your capital. This should be true even in worst case scenarios.

Stop-Secure Position Guarantees

There’s always the risk of the unforeseen. It is always advisable to use guaranteed stop loss. Let us supposes you purchased a 100 shares at USD 50 each. Suppose you set you stop loss at USD 47 per share.  In a downturn, a profit warning could lead the share price to plummet to anywhere between 10 and 40 USD. Owing to the price gap, the execution can be eventuated only at the next possible price.  A loss of USD 300 can easily be expected. With the exigency of guaranteed stop, you may safeguard yourself against potential losses well in advance.

Financing and FX CFD trading

In order to operate the CFD trade, your broker enables you by lending you money. You only make a contribution to the financing of the daily interest. This chalks up to a few percentage points.

Depending on your intent as to the duration of the CFD business, it is best to expect financing costs to rise. Forex CFDs are best suited to short term operations that run no longer than a few weeks. Predicting the expense of CFDs is difficult task. The best thing is that financing costs are easily offset by the absence of transactions costs.

Conclusion :

CFDs expand your range in trading. The expenses are more than amply recompensed. Besides hedging a share portfolio, CFDs make it possible for you to mirror trade the underlying market.

 

5 Best Forex Broker in Italy

When you are looking best forex broker. It would be best if you compare top forex broker

we have over into account complete range ranking factor, form spread and fees to a trading platform, analysis and charting options — all of that make forex broker, and you become a successful trader

Best forex broker usually is a condition of preference of the forex trader it may decide to add and need to trade the platform currency trading using the spot market or per tip or effortless ease of requirement.

The list of the compared broker on below, some are a vital broker, and others are worthy of considering. detail of best forex broker for each name you can found in the down on reviews

1) ROinvesting:

ROinvesting is an innovative trading platform to build up traders experience in the trading market. Market order place, 30+ analytic tool. ease from multiple analytics window chart to compare assets, trading signal with ROinvesting technique, advance mobile platforms and web trader

ACCOUNT TYPES

In this three account type are available

1. Silver
2. Gold
3. Platinum

400: Maximum leverage 0.03: Minimum pips

Min deposit $ 100 MT4 platform

. 0 Commission

. CySEC regulated

. Trading on any gadget

. Fastly fund withdrawal

. 24/5 customer support

. Top-level data security

2) HFTrading

follow our intensive review on HFTrading, HFTrading regulated and authorised by (ASIC) investment commission and the Australian Securities. HFTrading the broker is entirely new in the forex industry, HFTrading offered to best trading experience on the overall trading platform

ACCOUNT TYPES

1. Silver
2. Gold
3. Platinum

1:400: Maximum leverage 0.03: Minimum pips

Min deposit $ 250 New Zealand/Australia

. CySEC regulated

. 700+ Assets

. Commission-free

. 350+ Trading tool

3). ETFinance:

ET finance is the trademark name of Magnum FX Limited, a registered firm with Cyprus financial body, CySEC (Cyprus Securities & Exchange Commission) under license number 359/18. The company was started in 2018 and offered a number of tradable products including stocks, currencies, indices, commodities, and crypto coins.

The broker also offers services such as high leverage, several deposits & withdrawal options, widely used trading platform MT4, and free demo service account.

4) Tickmill broker

started in 2014 and is a trading service and products provider in EU nations. The company is safe under the regulations of FCA, CySEC, and FSA. There are three account types and MT4 trading platform for trading, accessible through mobile, desktop, and web versions.

Some of the other broker features are free and broad research, educational tools, 80+ CFD assets for trading, no commissions and low spreads on orders, and full customer service.

5) XM

XM is a CySec (Cyprus Securities & Exchange Commission), ASIC (Australian Securities & Investment Commission), and IFSC (International Financial Service Commission) regulated broker having more than 1000 financial products across different market types. One can trade these assets through the broker’s MetaTrader4 and MetaTrader5, available via Web, desktop, and mobile versions.

Notably, the company offers a variety of trading accounts, i.e. ten in total, to its users. All the accounts are segregated for a different level of traders, ranging from beginner to advanced ones.

Final: So, this was our list of best forex brokers 2021. Notably, every trading website mentioned above is different in its service catering and thus, needs to be judged variedly. For example, if one is a novice trader, then T1Markets is the right choice, but HFtrading is suitable for professionals. You should also go through our best stock trading brokers list if you are into share investments.

 Investing in forex trading is Good choice or Bad?

Investing in forex trading is a good choice or bad? Even if forex is the world's largest and most liquid market, many people always think about this question. Over 6 trillion of trading volume is there daily in the forex market, and over 9 million traders are trading forex online all around the globe. The forex market has different levels of traders, from beginners who are learning about the financial market and also those who are experts. Indeed the forex market is trendy worldwide but is it a good investment or wrong; the following write-up will tell. 

Suppose you start forex trading with appropriate strategies and proper mindset. In that case, forex trading is a good choice as the forex market is very easily approachable as you can start trading even with 100 $ compared to the other tradings it does not require a large amount of capital. Forex trading offers many options to choose from different platforms, accounts, pairs and lots. If approached correctly, there is lots of flexibility in forex trading, not only you can make profits, but it also helps in diversifying your portfolio.

Advantages of Investing in Forex Trading:

1.High Liquidity:

The forex market is the highest liquid financial market around the globe. Forex can be easily traded compared to other financial instruments. For example, it's hard to trade in stocks in a falling market due to its low liquidity. Because of the high liquidity of forex, you can trade in both falling as well as rising markets.

You can make money in the falling market by using a short-selling technique, for example, consider that EUR/USD is trading at 1.1350 and you sell that assuming that its value will fall. Suppose the trade closes at 1.1245 you will make a profit of 0.0105 or 105 pips.

2. Low costs:

The forex might have a very low cost of commission and brokerage. Many forex brokers gain their profits through spreads in forex currencies.compare to equity or another financial trading where the brokerage charges are very high. Choosing the right broker, you can attract relatively low commission cost or commission-free trade. PrimeFin is on the top forex broker providing cost-free transactions.

3.Volatility:

The level of movement in the value of a financial instrument over a specific period is called volatility. Because of this volatility traders can make a profit in the forex market. High volatility has high risks, but also there are more chances of gaining high profits.

You can frequently notice the cost movements in major currency pairs around about 50-100 pips, almost on any days.USD/GBP, CAD/USD, and JPY/USD might pass above 100 pips a day. You can notice minor currency pairs, such as NZD/GBP and AUD/GBP can pass above 200 pips a day. Exotic currency pairs more volatile such as THB/USD and NOK/JPY can pass over 400 pips a day. Because of all this high volatility, there are many chances to earn good profits in forex trading.

4.Leverage offers in Forex Trading:

One of the essential features that make forex trading popular is the leverage offered by the forex brokers. In other financial markets, brokers offer low leverage compared to the forex market. Using the leverage traders can trade up to $ 1,00,000 position with just $ 2000 in their account. With Primefin broker, you can obtain maximum leverage up to 1:500.

Conclusion of Investing in forex trading is a good choice or bad?

Investing in forex trading can be a good idea if the trader follows all strategies, keeps learning about the financial markets and carefully selects the broker so they can quickly build the winning techniques. You have to assure that your broker meets all your trading requirements which are required for forex trading. Brokers can perform an essential role in your trading by offering you the best market updates, signal indicators, economic calendar, charting tools, webinars, etc.PrimeFin can meet all your trading requirements and expectations.