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Is it Possible to Get a Gold Investment Leveraged
There are many types of gold investments and with regards to is it possible to get a learn more gold investment leveraged,Is it Possible to Get a Gold Investment Leveraged Articles the answer is a yes and a no. Let me explain.
Most of the types of gold investment are non-leveraged. These include physical bullion or gold certificates
However, you can leverage your investment in 2 ways. These 2 ways are
Trading it as Forex
In this instance, you would trade gold as a currency pair. It could be against the US dollar, Japanese Yen, Swiss Franc and a whole host of currencies. This actually have the advantage that you could be amplifying your gains not only from the appreciation of gold in general but also the depreciation of the other currency.
Profiting from both ends of the stick
For example, if gold is generally on a uptrend, buying any gold investments would naturally make you money from the rising gold price. However, if you know that a particular country is in a unique crisis, you would be able to capitalise on the falling value of that currency by betting against it. In this way, assuming you are betting against the japanese yen, you can go long on XAUJPY. This would allow you to capture a larger profit, since you would be profiting both from rising gold price and falling japanese yen.
How Is it possible to get a gold investment leveraged
Trading such currency pairs are usually done using CFDs or contract for differences. This is highly leveraged and is considered high risks. Most of the platforms reports losses incurred by over 70% of their account holders. Therefore, this is advised for trained and experienced traders.
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