HFM (formerly HotForex): What is XAUUSD? Differences from GOLD FX, Gold trading


We will explain the difference in price between xauusd and gold, and what traders should be aware of. Most FX companies do not only deal with foreign exchange rates. The same is true for HFM, which also deals with precious metals, energy, and virtual currencies in addition to foreign exchange. Among them, gold is a highly recommended investment product.

What is XAUUSD?

XAUUSD is gold. However, as you can see from the word USD, the price of gold is displayed in US dollars. As it is said to be emergency money, when the world situation becomes unstable, gold becomes easy to buy anyway. People have long tended to buy gold when anxious, and that hasn’t changed. By trading with high leverage, you can make a profit even with a small amount of money.

Difference between XAUUSD and GOLD

The symbol for gold varies from FX company to FX company. Other companies may write it as GOLD. HFM writes it as XAUUSD. XAUUSD shows how much US dollars per ounce of gold is traded in. When purchasing from a broker, there may be some differences in the information displayed. However, the value of the asset is the same. You can trade with the maximum position. The target is different charts, and it is attractive because you can hold it for short to long periods. Generally, you can check the movements of both categories.

Features of XAUUSD Price Movement

Gold price movements often result in huge losses for traders who are accustomed to foreign exchange rates. This is due to the following reasons. Gold is not very popular in the domestic market at the moment, but unlike the dollar/yen, it is prone to trends and can easily go negative. Either way, try to manage risk as much as possible and make sure you predict the exchange rate before settling. Also pay attention to the balance of the amount. Finances often move depending on the timing, so if you are going to continue for the long term, pay attention to various indicators.

high liquidity

XAUUSD price movement is known for its high liquidity. Popular currency pairs in the exchange market, such as USD/JPY and EUR/USD, do not often move 100 pips. However, XAUUSD tends to be more volatile than forex, as it often moves more than 1000 pips per day. Note that the higher the price movement, the higher the profit, but also the higher the loss.

Risk-off phase

XAUUSD has the characteristic that it is bought in the risk-off scene and the rate rises. Risk-off means the behavior of investors to avoid risks, and it is the behavior that occurs when anxiety spreads due to political instability and sudden economic fluctuations. Money is what people invest in at a time like this. This happens whenever recession risk rises.

Inversely correlated with the US dollar

Since XAUUSD involves the US dollar, it is affected by the US economy. When the US dollar rises, XAUUSD falls, and when the US dollar falls, XAUUSD rises. Therefore, it is important to pay attention to the economic indicators of the United States in particular. In particular, policy interest rates and unemployment rates have a considerable impact.

Advantages of CFD trading

The advantages of CFD trading are:

Allows for small transactions

XAUUSD CFD trading is the same as forex trading, so leverage can be applied, so you can trade safely because it is possible from small transactions. Unlike foreign exchange, it is not highly leveraged, but even so, CFDs can be used from a small amount, which is a big advantage.

entry from sell

In XAUUSD CFD trading, you can start trading not only from buying but also from selling. In the actual market, you can only enter from the purchase, but if you can sell it, the range of strategies will expand.

24 hours trading

XAUUSD can be traded 24 hours a day on weekdays. Therefore, even if you are a regular office worker or a freeter, you can trade by using your free time, so it is an investment stock that is recommended for busy people.

Desventajas del comercio de CFD

Las desventajas del comercio de CFD son las siguientes:

Posibilidad de reducción de pérdidas

Existe la posibilidad de reducción de pérdidas. El comercio de CFD tiene bastante volatilidad, por lo que si lo tolera demasiado, podría terminar con una pérdida bastante grande. Tengo que intentar no contenerme demasiado.

intercambiar puntos

En el comercio de CFD, existen puntos swap, similares al mercado de divisas. Si esto se convierte en una operación swing, siempre se producirán puntos de intercambio, así que tenga esto en cuenta antes de realizar una operación swing. El comercio intradía no importa.

HFM recommended

XAUUSD can also be invested in HFM. Not only that, but we also handle stocks, exchanges, and virtual currencies, so we highly recommend it. You can open an account for free, so please refer to the following article.


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