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HFM increases leverage on gold to 1:500 (0.2% of margin requirement).
Extra gear for trading with HFM, it is now possible to trade gold pairs with a maximum leverage of 1:500.
1:500 maximum leverage on gold
As an international broker constantly striving to improve trading conditions in order to allow its clients to benefit from some of the most competitive terms, tools and services in the industry, HFM (formerly HotForex) through an article published on HFM Official Website recently announced that starting Monday 29.08.2022, margin requirements on Gold symbols will be reduced by moving from 0.5% to 0.2%.
This means that traders who want to invest in this instrument will be able to take advantage of the maximum leverage of 1:500 and benefit from it.
The Gold symbols on which the changes will be made are as follows.
The changes to the margin requirements just mentioned will apply to both new and existing positions on any type of HFM account.
All the other features of the tool will remain unchanged, it will be possible to view them on the page dedicated to the description of the tool by visiting the official website or alternatively in the specifications on the trading terminal.
Trading gold with HFM
A widely used precious metal, since ancient times gold has played a crucial role in the economy as it is often associated with monetary wealth.
To date, in the main financial markets of the world, traders who invest in precious metal are well aware that it is a tool that tends to maintain its value for long periods.
Therefore a stable tool, which guarantees a safe haven in case of market instability to traders who prefer investments in commodities.
The main factors influencing gold prices are the following:
- Supply and demand
- The price of gold varies as demand changes. So if the demand is growing the price of gold increases, on the contrary, if the demand decreases the value of gold decreases.
- Linked to the US dollar
- Since the value of gold is quantified in US dollars, its price is inevitably related to the value of the US dollar.
- Gold and inflation
- Inflation usually affects the value of gold directly. An increase in inflationary levels tends to increase the value of the precious metal accordingly.
- Gold and industry
- Widely used both by industries operating in the technology sector and in the production of jewelry. An increase in the production of such companies generally causes an increase in gold prices.
- Safe haven investment
- Used by traders as a real lifeline in the event of countless factors, such as market volatility, political uncertainty and economic collapse. A necessary tool for excellent long-term diversification of the investment portfolio.
Characteristics of investments in gold with HFM
For correct management of resources, in order to be able to make weighted investments while being aware of fundamental information for gold trading, it is important that the trader knows that:
- Swap values may be changed on a day-to-day basis with reference to market fluctuations and rates provided by the broker’s Price Provider applicable to any trade. As for triple swaps, these will be applied every Wednesday. We would like to specify that swaps for XAU and XAG instruments are expressed in pips per 1 lot.
- The server times are as follows: GMT+2 in winter, GMT+3 (DST) for summer (this period starts on the last Sunday in March and ends on the last Sunday in October).
- In the period from 23:55 to 00:05 (server time), due to causes deriving from the daily rollover of the bank, an increase in spreads and a decrease in liquidity could occur. Consequently, inadequate liquidity / spreads during the bank rollover could result in widened spreads and excessive slippage. During this period there is the possibility that the orders placed will not actually be executed.
Advantages of trading gold
The advantages deriving from investments in gold are:
- Strong intrinsic value
- The intrinsic value represents the perception of the value of an asset by traders or more simply its real value. But it must be said that this value does not always correspond to the value of the market, indeed often an asset is overvalued or undervalued.
- Security against inflation
- A real refuge to avoid being overwhelmed by dark market periods. A sort of insurance, as gold is an instrument that keeps its market value stable for long periods.
- International liquidity
- Gold has the quality of being monetized anytime and anywhere as it is one of the main components of international liquidity.
- Low transaction costs
- Transaction costs generally represent the cost of making an exchange, a contract or an economic transaction in general. In short, they represent the costs to invest in the markets. HFM offers traders the opportunity to invest in gold with some of the lowest costs on the markets.
For any information on investing in gold and other precious metals, visit the official website and contact the support team available 24/5.