Gold leverage: from 1:1 to 1:1000, where to open an account for trading
Gold has recently gained immense popularity among traders and investors. The precious metal's high volatility offers opportunities for profitable gains, even in the short term.
Anyone planning to make money from gold can be divided into two categories, each with its own requirements for organizing the trading process.
A Conservative Approach: Trading Gold Without Leverage
The first category —let's call them "investors"—prefers to use 1:1 leverage or, more simply, to trade with their own funds.
This option is available with the following stock brokers: gold trading brokers .
To avoid using leverage in trading, simply set the minimum leverage ratio to 1:1 when opening an account. This way, you'll trade without using brokerage funds. Keep in mind that fees for opening positions and rolling over trades (swaps) will still apply.
You can also take an even simpler approach: open trades with a volume no larger than your deposit. For example, if your account balance is sufficient for exactly 0.1 lots of gold, then you open a position of exactly that size.
Technically, this doesn't always mean completely disabling leverage in your account settings, but your financial results will change strictly proportionally to the price movement. If gold falls by 1%, your loss will still be 1%, not 10% as it would be with 1:10 leverage.
| Leverage | Changing your capital | Risk level |
|---|---|---|
| 1:1 (Without shoulder) | 1% | Low (Investment) |
| 1:10 | 10% | Moderate |
| 1:100 | 100% | Critical (Account drain when moving at 1%) |
Active trading: working with leverage
The second category are players who do not have large capital and seek to increase their profitability through borrowed funds.
Today, some brokers offer leverage for gold up to 1:3000, but using such extreme values in practice is practically pointless due to the colossal risks.
For stable trading, leverage of up to 1:10 is usually sufficient. However, it's important to closely monitor your open positions to ensure that random market fluctuations don't wipe out your deposit.
You might be interested in the test result to see how realistic gold scalping is .
Despite the growing volume of speculative trades, gold remains primarily an investment asset. It is ideal for long-term storage or hedging against the risks of more aggressive investments.
For a detailed breakdown of how much you'll have to pay when rolling over long-term gold positions, read here: https://time-forex.com/info/swop-gold
