Precious metals margin trading allows traders to participate in gold trading with less capital because they only need to pay a fraction of the total trade amount as margin. This flexible trading model has attracted widespread attention from global traders, and London Gold (Trading Code XAU) has become one of the most popular precious metals trading products. Compared to purchasing physical precious metals, precious metals margin trading eliminates storage and purchasing issues, making it an ideal choice for many investors. Through SevenWonders' precious metals trading, investors can effectively hedge against inflation risks through various investment channels.
Trading Terms and Conditions
By using SevenWonders' MT4 trading platform and taking advantage of the benefits of small trading units and low margin requirements, you can trade in the two most popular precious metals, gold, and silver, and enjoy the following advantages:
Leverage and Margin
Similar to forex, precious metals trading is also margin trading. SevenWonders can provide leverage of up to 100:1 for gold and silver trading for our clients. This means clients can trade at a leverage of 100:1, which requires 1% margin. Leverage creates opportunities for clients to amplify their gains, but it also increases the potential losses.
Margin Call
Similar to forex, SevenWonders has implemented a margin call policy. When the account margin falls below the required level, the system will prompt for a margin call, and all positions will be forcibly closed to protect clients from further economic losses. Margin call is real-time and automatic, and closing positions ensures the used margin on the account, avoiding further losses due to market movements.
Hedging Function
Through trading with SevenWonders, clients can mitigate market impacts caused by economic, political, or social situations by buying and selling gold and silver. Since the value of the US dollar and gold often move inversely, investors can also buy gold to hedge against US dollar risk. Additionally, SevenWonders' trading platform allows traders to hedge their long and short positions without occupying additional margin. The hedging function provides traders with additional risk management potential, enabling them to adopt more flexible trading strategies during market volatility.
Spreads
Spreads refer to the difference between the buying and selling prices of currency pairs. SevenWonders generates profit from spreads and strives to provide competitive spreads to its users.
Contract Size
Precious metals trading offers flexible contract sizes. You can choose the contract trading units, with the minimum contract size for gold being 100 troy ounces and for silver being 5,000 troy ounces.
Order Types
When trading precious metals, you can also enjoy multiple types of orders and pending orders to better manage position risks. The order types we can provide include market orders, pending orders, stop loss/take profit orders, and OCO orders.