User:SheriShepard341

How to take advantage of rising gold with CFDs The gold price seems unstoppable, having reached $1,900 per ounce. But why is this commodity rising in this way? And how can investors take advantage of this situation? [CFD]: Gold, Safe Haven Investing:The situation in Europe is very delicated. On one hand we have difficulties in reaching agreement on the second bailout of Greece and on the other hand we have the problem of peripheral debt, inevitably influenced by the Greek chaos. In this scenario investors cling to gold, considered as a safe haven asset, particularly within the context of uncertainty. In the last year, the global demand for gold bullion and investment grew 52%, according to the World Gold Council. When demand increases, prices rise. Hence we have been experiencing notable market spikes around this precious metal|In this context traders prefer investing on gold as it is well known as a safe haven financial product. During last year, the global demand for gold bullion and investment increased 52%, according to the World Gold Council. And when demand grow, prices rise. This is why we have been experiencing notable market spikes around the yellow metal. [CFD] Strategies on Gold: Investing in gold provides a useful vessel for traders to take advantage of this upward trend. A CFD (or Contract For Difference) is simply an agreement to exchange the difference in the value of an underlying financial instrument at the time of opening and closing this agreement. Thus, the investor buys the CFD on gold if he expects it will appreciate at a given time. If so the investor will benefit from this difference multiplied by the number of contracts purchased. Several analysts have suggested that this upward gold trend could result in a bubble. Investors may soon find a reversal in the price of the precious metal. If this occurs, the CFD would be traded in the opposite direction: the CFD would be sold to buy it later at a lower level with the expectation of profit from this difference. A trader will be going short. Why enter the market with [CFD] The main advantages of using these financial products are the leverage effect and the possibility of opening position in rising or falling markets. But remember that they are risky assets that require an appropriated risk management strategy. Learn about the performance capabilities of CFD trading and make the most of your investment, whatever the market trends.