Metals Trading

Trade Metals CFDs with AI Fx Trade

AI Fx Trade allows trading the spot price for metals including Gold or Silver against the US Dollar or Australian Dollar as a currency pair on 500:1 leverage.

Open a trading account with AI Fx Trade, and you will gain exposure to the available global market prices on trading gold CFDs and silver CFDs. Trading metal CFDs with AI Fx Trade, a global regulated, multi-award-winning broker.

What are the benefits of trading Metals?

What is the Best Platform to Trade Metals?

MetaTrader 5. The world’s most popular trading platform.

Discover the benefits of Forex trading on one of the most powerful trading platforms available, MetaTrader 5 (MT5). Available across desktop and mobile platforms the MetaTrader 5 platform is ready when you are.

  • Spreads from 0.0 pips & leverage up to 500:1
  • Customisable interface, including colours of technical indicators
  • One-click trading
  • MarketWatch
  • Live price streaming on Live accounts and Demo accounts 128-bits encryption for secure trading
  • Expert Advisors (EAs)
  • Customisable alerts
  • Compatible with iOS, Android and Mac devices

Reasons to Choose AI Fx Trade

A Global Forex broker

 

Global Regulated Broker

Boost your trading experience with a licensed and fully regulated Global forex broker, with multiple awards to their name.

Trading Platforms

Give your forex trading an edge with robust, feature-rich and easy-to-use MetaTrader 4, MetaTrader 5 and Iress.

Low Latency Execution

Get all the available market prices and tight spreads, with ultra-low latency execution and minimal slippage.

Forex Trading Leverage

Leverage of up to 500:1 in over 50 currency pairs and widen your exposure to the global forex markets

What is Metals Trading?

At AI Fx Trade, we offer you exposure to the most popular precious metals that make up an important commodity asset class. Metals trading is closely linked to the outlook for the overall global markets and major currencies and metals are traded against major currencies in a similar way to other currency pairs on the platform.

Factors affecting precious metal prices include supply and demand, interest rates, economic uncertainty, industrial output and the strength of the dollar with precious metals like gold traditionally viewed as a safe haven in times of volatility. Traders can trade metals to express their outlook on certain industries or to hedge their trading portfolio.

Through careful analysis, CFD traders predict the potential direction of metals prices and attempt to capture gains based on price fluctuations in the short-term or long-term. The market is open 24 hours a day, 5 days a week.

An Example of
Leveraged CFD Trading

Suppose you want to trade CFDs, where the underlying asset is the XAUUSD a Metal, also known as Gold vs US Dollar. Let us suppose that the XAUUSD is trading at:

You decide to buy 100 oz of XAUUSD (1Lot of XAUUSD) because you think that the XAUUSD price will rise in the future. Your margin rate is 0.2% (Account Leverage 500:1) . This means that you need to deposit 0.2% of the total position value into your margin account.

 
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Now, in the next hour, if the price moves to 1793/1793.1, you have a winning trade. You could close your position by selling at the current price of 1793 USD.

 
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In this case, the price of gold moved in your favor. But, had the price declined instead, moving against your prediction, you could have made a loss. This continuous evaluation of price movements and resultant profit/loss happens daily. Accordingly, it leads to a net return (positive/negative) on your initial margin. In the loss scenario where your free equity, (account balance+ Profit/Loss) falls below the margin requirements (358.4), the broker will issue a margin call. If you fail to deposit the money, and the market moves further against you, when your free equity reaches the 50% of your initial margin the contract will be closed at the current market price, known as “stop out.”

Metal Spreads

Why Trade Precious Metals with AI Fx Trade?

 

Precious metals are among the Top Commodities To Trade Metals are classified as a hard commodity as they are mined from the earth or extracted from natural resources. Through Contracts For Difference (CFDs), you can gain exposure to metals markets in a unique way that provides a wide range of advantages.

 Margin Trading: As CFDs are a leveraged product, you can open large positions by depositing only the margin required. As metals such as gold have high levels of liquidity, commodities trading offers higher levels of leverage than many other tradable instruments.

 Go ‘Long’ or ‘Short’: One of the main attractions of CFDs is the ability to speculate in both rising and falling prices. The ability to open short positions and benefit from falling prices is a unique aspect of CFD trading and one that creates additional trading opportunities.

 

 Risk Management: Advanced trading platforms such MetaTrader 5 offer excellent risk management tools. Their features include a large range of charting tools but also a multitude of order types and alerts to ensure that you are made aware of any changes to market conditions.

Supply and Demand: Applicable across all products and services, the same also applies to precious metals. A shortage in metals or the increased demand for their use can affect prices. Let’s take industrial metals such as copper or aluminium. A technological advancement may create an alternative for their use and decrease their value.

Macroeconomic Variables: Data relating to interest rates and GDP affect a significant amount of metals. One of the reasons is because metals are seen as a safe-haven, and an alternative investment to the cash rate provided by financial institutions.

Market Conditions: AI Fx Trade provides metals trading against many major currencies including the US dollar, similar to foreign exchange. Metals tend to be susceptible to the US dollar and have historically traded in the opposite direction to the greenback. This is why they are often used as part of a hedging strategy in times of economic uncertainty.

Inflation: Anything that dilutes the value of a currency helps the performance of metals. Quantitative easing or the printing of additional money causes a rise in inflation with metal prices generally following suit.

Benefits of Trading Precious Metals

Metals CFDs: As you do not have to not actually own the underlying asset when trading CFDs, there are fewer costs associated with investing in metals this way. There is no need to store the asset and traders can benefit in both rising and falling prices. The prices are comparable to those found on the London Metal Exchange (LME), the world’s largest market for ETFs on base metals and other metals.

Portfolio Diversification: With limited correlation to other financial instruments such as stocks and bonds, trading precious metals is a useful way to diversify your portfolio.

Hedging: Precious metals are often used as part of a risk management strategy. Investors often trade metals to hedge against inflation and currency.

Safe-Haven: During times of economic uncertainty, the value of precious metals tends to rise. This has historically been the case during economic slumps and key political events including major elections.

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