Gold trading also is done the same way you do currency trading. Instead of buying currency you buy gold. In both cases there is no physical gold or currency involved. Instead of making profits when prices of currencies go up those who are engaged in online gold trading make money when price of gold goes up in the international markets. Most of the brokers that provide facilities to do forex trading also provide facilities to trade gold.
When you buy or sell gold online you never do transactions with a particular market. Instead, the transactions on gold are done on the over the counter method. In this case buyers could buy directly from sellers and they never need to go through any trade exchange such as the NYSC. Therefore, trading takes place throughout the day and it is a nonstop process. Forex trading also is done on the same over the counter system and that also is a nonstop one.
There is also a type of trading called day trading and people use this method for commodity trading including gold trading. In this case they buy gold once the market opens and sell before the market closes. However, when one who is engaged in online gold trading is unable to sell his gold within the day due to drop of prices, he could keep it for two or three days with him before making the sale when the prices recover.
Online gold trading has become popular as the possibility is there to receive quotes with the availability of live data transfer. Charts technology is one that helps traders to do this kind of transactions. This is one of the good deeds of the availability of internet for gold trading. The average gold trader is able to do transactions with ease as spot prices are there to use on sales as well as on purchases.
With gold trading the likelihood of losses is very much lower as the gold prices seldom depe