How to trade GOLD in XM

Since the COVID-19, GOLD has become an increasingly popular asset for risk hedging.

Gold is very popular not only for medium to long-term holdings, but also for short-term trading.

In other words, like FX, it is subject to scalping and day trading.

In this article, I will explain how to trade the popular gold in XM and points to note.

What you can learn in this article;

Precious metal CFDs that can be traded on XM
Gold trading contract size, required margin
Gold trading hours
How to trade gold on MT4 / MT5

Precious Metal CFDs in XM

XM offers a total of four types of precious metal CFDs.

Along with gold, XM also handle popular silver, palladium, and platinum.

Please be noted that palladium and platinum are futures products, and a settlement month is set.

Gold can be traded with a maximum leverage of 888 times.

Symbol	Product	Max leverage
GOLD	Gold (Spot)	1:888
SILVER	Silver (Spot)	1:400
PALL	Palladium (Future)	1:22
PLAT	Platinum (Future)	1:22

Trading hours of Gold

You can trade gold on XM during the following times.

These are standard time in Europe and the United States.

Daylight Saving Time (DST) is one hour earlier than these.

Day	Start – End (GMT+2)
Mnday	1:05～23:55
Tuesday	1:05～23:55
Wednesday	1:05～23:55
Thursday	1:05～23:55
Friday	1:05～23:50

Gold Trading Contract Size and Margin Required

How much margin is required to trade gold is calculated by the following formula.

Lots * Contract Size * Market Price / Leverage = Required Margin

In XM, the contract size of gold per lot is 100 oz.

For example, when the market price is 1 oz = $ 1800, the margin required to trade gold with a maximum leverage of 888 times is calculated as follows.

1 lot * 100 oz * 1800 $ / 888 = 202.7 $

If you trade 0.01 lot, only $2 is required.

Commission Fee of Gold Trading

How much is the commission when trading gold with XM?

This depends on the account type.

Standard, Micro, Swap Free Account

XM Standard accounts, Micro accounts and Swap-free accounts have the same spread.

Fees are collected as spreads and there are no other transaction fees.

For these account types, the average gold spread is 3.5 pips.

This means that trading one lot costs $ 35 worth of commission.

The contract size of the Micro account is 1oz.

One lot in Standard account is equivalent to 100 lots in Micro account.
The conditions such as spreads are the same for both Standard accounts and Micro accounts, only the contract size is different.

Ultra Low Account

XM’s Ultra Low account offers narrower spreads at the cost of slightly more stringent minimum deposit requirements.

The average spread for Ultra Low accounts is 2.5 pips.

This is a bit cheaper than other account types.

However, Ultra Low accounts are not granted XMP.

Standard accounts, Micro accounts, and Swap Free accounts can get XMP, so the actual spread will be narrowed accordingly.
Considering bonuses such as XMP, it can be said that the fee is cheaper for standard accounts