Metal trading in a process of buying and selling any sort of metal like gold, silver, or any other precious metal. These are some factors that affect the price like demand, supply, jewelry-making requirement, and much more. Gold and silver are the two metals that are traded by people in their raw form which is called bullion.
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WHAT IS METAL TRADING IN THE FINANCIAL MARKETS:
1. SPOT MARKET: This is the market where traders buy and sell the metals for cash.
2. FORWARD/FUTURES MARKET: This is the market where traders buy and sell the metal for future delivery or later on a fixed date.
3. CONTRACT MARKET: This is the market where traders don’t buy or sell but just make an agreement to buy or sell which is called a contract, this is done by an exchange of metals called ‘futures’.
4. DERIVATIVES MARKET: This is the market where traders buy and sell contracts of metal for future deliveries.
DIFFERENT TYPES OF METALS YOU CAN TRADE:
1. BULLION: This is the raw form of metals i.e. Gold, Silver, etc…
2. PRECIOUS METALS: This is also known as ‘Collectables’, these are the type known as jewelry. If you have a precious metal like silver, gold, or platinum it serves the purpose of ornamentation in the ‘jewelry’ accessories.
3. INDUSTRIAL METALS: These are the metals used for different purposes in the industry like steel, aluminum, etc…
4. COMMODITIES: They are not considered precious metals but still, people consider them as precious metals and the prices are volatile.
5. CURRENCY METAL: This is the metal that is used to exchange your local currency for another currency.
6. FUTURES: This is a contract that allows you to buy and sell future deliveries at a pre-defined price at a later date/time.
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HOW TO START TRADING METALS:
To start trading, you must have money that you can invest in the financial markets. Make sure you can afford to lose the money you are investing in the financial markets, before starting to trade. Trade is an art that takes a lot of time and planning too. There’s no compromise on this, it’s all about being able to visualize the process beforehand. You have to be very careful while trading, there are many scams that are occurring in the market of metals, if you let yourself be lured by these kinds of exciting offers then you might get into trouble soon. You have to learn how to trade in a natural manner based on your experiences and knowledge and think carefully before doing anything.