Currency pairs are the main tool for trading and making profits in Forex. At the same time, currency trading itself has several disadvantages. For example, impressive volatility in most currency pairs is observed only in certain sessions (European for the Euro and the British pound, to the Australian for the Australian and New Zealand dollars). In addition, the value of the currency is highly speculative and depends on the geopolitical situation in a particular country.
Given the need to diversify risks and the desire to provide traders with the most extensive financial opportunities, today many Forex brokers offer the opportunity to trade in metals.
Exchange of non-ferrous metals on Forex
Recently, it is the exchange of non-ferrous metals on Forex has become very popular, because the metals themselves are highly liquid goods, the cost of which depends little on the situation in a particular country. Therefore, the price does not change so drastically, and significant fluctuations (both a critical fall and a pronounced price increase) are virtually excluded.
Today, gold and silver are the most popular on Forex, although you can successfully trade in nickel or other non-ferrous metals – most brokers offer this opportunity.
The popularity of non-ferrous metals is largely due to the fact that price movements, which depend primarily on global factors, are easier to predict for beginner traders. At the same time, there is no need for subtle knowledge of technical analysis, and fundamental analysis allows one to get quite clear ideas about the upcoming trend.
The advantages of trading metals
Trading precious metals on Forex, in particular, silver and gold, has a number of advantages. So, the pairs of these metals with the leading currencies are quite volatile, but at the same time the price movement methods of technical analysis are relatively easy to predict.
Market stability, trend clarity, predictability of quotations and the possibility of long-term investments distinguish Forex trading in metals. The market for precious metals is very popular not only among speculative traders who want to make impressive profits on short timeframes. It is in demand among long-term investors, since the cost of gold and silver only grows with time.