Many traders are now wondering if gold trading could be a good way to make extra profits, with the gold price at all-time highs. Trading the gold futures contract is one way to achieve this. You are speculating on the future price of gold. Gold has historically been a good long-term investment in times of economic uncertainty and crisis. The fact that gold is a great investment in times of great difficulty, and the fact that there are many international tensions around it, is a testament to its value.
Profiting from fluctuations in gold’s price can be done in many ways. You can play the long side. This is when you speculate that prices will rise in the future. You can also play the short side. This is where you speculate that prices will decline in the future. It is crucial to be aware of the tick activity when trading commodities.
If a futures contract is being bought or sold, it will be reflected in a positive or negative uptick. If you plan on going long, you will want to take a position with a negative downtick. However, if you’re looking to go short, you can use a positive uptick to help you enter the futures contract. The straddle is a common strategy for trading gold. This is when you go long and short simultaneously. You should purchase both contracts at the exact same time and price so you can profit from volatility and make money.
