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[Vlad RF]

How to Invest in Gold?

Author: Andrey Goilov

Dear Clients and Partners,​

Gold is a safe-haven asset in times of world financial crises. The pandemics of the coronavirus and political turbulence in 2020 pushed the gold prices up higher than the level of 2000, though at the beginning of the year it cost no more than 1,500 USD per troy ounce.

Advantages and drawbacks of investing in gold

As you see, there are plenty of options for investing in gold.

The easiest way is to invest in exchange instruments, such as futures and CFDs. Trading such instruments, you do not need to buy physical gold, transport, and store it.

Compared to mutual funds, such investments are quicker to make a profit; trading CFDs, you can always close the trade yourself and exit the market, waiting for better times. However, to use exchange instruments, you need some minimal knowledge of it.

Currently, the quotations of gold are going down again – buyers failed to hold the highs. However, traders are sure that this is just the beginning of a new wave of growth, and the price will start going up very soon. Regardless of such prominent growth this year and the confidence of traders, gold cannot boast high profitability. For example, Bitcoin grew from 8,000 to 19,500 USD in 2020, leaving gold far behind.

Why do traders keep investing in it?

The main reason is low volatility, compared to digital currencies and stock indices. In this article, we will discuss the ways of investing in gold, the difference between them, and the profitability of investments in this precious metal.

Summary

Gold is not the most profitable asset. However, you can be sure that it is among the safest ones nowadays. Moreover, even after a decline, it resumes growth, even in times of global crises.

Remember that each investor should have their strategy because each person has different demands and financial capabilities.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, the ContestFx project invites everyone to whom it might seem interesting to take part in the following competitions:

The 117th competition of "Demo Forex"and 288 compeititon of "Week with CFD" just kicked off in December.
421st competition of "Trade Day" will start on 09.12.2020 at 12:00 a.m.
338th competition of "KingSize MT5" will start on 10.12.2020 at 8:00 p.m.

We remind you that to participate in any of the competitions, it's enough to go through a simple registration procedure just once. Next, you'll be able to join the competition of your choice in just a couple of clicks.

We're looking forward to your joining in and wish you good luck!

Sincerely,
RoboForex Contest

 

[Vlad RF]

How to Invest in Silver: Available Instruments for Investors

Author: Victor Gryazin

Dear Clients and Partners,​

Silver has been known since ancient times: some of the first silver deposits in Corsica and Cyprus were developed by Phoenicians. Refined silver was a rare treasure at those times, sold for exorbitant prices. Silver was used for making coins, jewelry, tableware, and dishes – such things are found as buried treasures from time to time. Amazing disinfectant properties of silver were noted by Scheele and Paracelsus.

In this overview, we will discuss why silver seems attractive to investors and which instruments to choose for investments in it.

Why is silver attractive?

As long as the global economy is stuck in a crisis provoked by the pandemics, the demand for precious metals is growing. As a rule, precious metals, such as gold and silver, enjoy special attention when the perspectives of currency rates, especially the USD, are vague. Gold, the most popular precious metal, renewed its all-time high this summer.

Silver, which is the second most popular precious metal, is also in high demand and growing. As well as gold, it is used for making jewelry, coins, and ingots. The silver market is smaller than the gold market, which makes the quotations more volatile.

The supply of silver is formed by three main sources:

• Primary production is the production of silver from mined ore. The largest world’s supplier of silver is Mexico, then go Peru, China, and Australia.
• Secondary production means remelting pieces of art, jewelry, dishes, and recycling photographic film and electric contacts.
• The third source is physical silver deposits. A lot of metal is stored in large exchanges that specialize in trading metals (COMEX, LME) and various state storages.

Silver is actively used in industry: the metal is used in car parts, electronic gadgets, solar batteries, and photography. New technologies, such as silver oxide batteries, silver conductive ink, and various silver-based nanotechnologies in medicine, are growing more popular. As a result, the demand for silver is growing gradually, making the metal attractive for investments.

Next, let us discuss popular ways t invest in silver, their advantages and disadvantages so that you could make up your mind.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

How Does Crude Oil Price Influence USD/CAD?

Author: Maks Artemov

Dear Clients and Partners,​

Oil has become an intrinsic part of our lives, and humanity depends fully on it: oil is not just a source of energy but also the material from which many everyday things are made.

It has long been argued that only large corporations can make money on crude oil but this is wrong. Most types of oil are available for trading in the stock market, the most popular types are BRENT and WTI. The USD is the most widespread currency in the world, used for the biggest part of transactions. The majority of wealthy people keep their capital in the USD. The Canadian dollar is less popular over the globe. It is a commodity currency, which means it reacts actively to commodity prices, oil and gold in particular.

Today, we will discuss the interaction and correlation of oil prices and the CAD. If you look closely at the charts of BRENT and USD/CAD, you will notice certain patterns in the dynamics of the assets. As long as the Canadian economy depends on oil production and selling, USD/CAD quotations correlate with oil ones

What is the correlation?

Correlation is the way assets relate to one another at a certain period. There are three types of correlation:

• Positive correlation means that two instruments are going in one direction during the observation time. The observed assets will rise or fall proportionately. The charts are similar.
• Negative correlation means that the assets are going in the opposite direction. While one asset is growing, the other one will be declining. The charts look mirror-like.
• Zero correlation means that the instruments are acting with no obvious relation to each other.

As long as in the USD/CAD pair the US dollar comes first, the correlation will be negative. This means that the growth of oil will cause a price chart of USD/CAD to fall.

Example of USD/CAD trading

Look at the H4 of USD/CAD and WTI. The WTI quotations broke through the resistance level and started growing. At that moment, the situation on the USD/CAD chart is the opposite: the price began to fall fast. During 8 candlesticks the oil price was growing, then returned top the broken resistance level. As for the price chart, the quotations keep declining, pulling back from time to time. This might mean that Canada made a profit on oil and somewhat secured its national currency against the US dollar. Then if oil quotations keep growing, USD/CAD will be falling, asserting further strengthening of the Canadian dollar.

Though there is an obvious correlation between oil and USD/CAD, it would be wrong to use it for trading without additional filters. The market is full f false surges that provoke unpredictable rises and declines. Anyway, this correlation can be used as a supplementary signal supporting the direction of the price.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, as always, the ContestFx project continues with the following competitions:

The 117th competition of "Demo Forex" is now running in the second week.
The 289th competition of "Week with CFD" has started today.
At 12:00, December 16th, 2020, starts the 422nd competition of "Trade Day".
At 20:00, December 17th, 2020, starts the 339th competition of "KingSize MT5".

All of our winners receive funds to their real accounts as a reward and they can use this money to perform full-fledged trading operations in the Forex market without investing their own financial savings required as an initial deposit.

Join Us!

Sincerely,
RoboForex Contest

 

[Vlad RF]

How to Invest 1,000 USD? Three Versions for Beginners

Author: Andrey Goilov

Dear Clients and Partners,​

A bank deposit will not bring a lot of profit from 1,000 USD; the profit is unlikely to cover up for inflation even. The first thing that comes up in your mind is marginal trading. It allows opening trades for sums much larger than you have on your deposit. Leverage is most often used in the currency market, however, it requires the knowledge of tech analysis and constant monitoring of what is going on. Also, leverage entails additional risks for the investor.

Our blog is about trading, so let us try to make up our mind about investing in risky assets and whether you can make money there, or whether it is better to invest your 1,000 USD conservatively.

Investments in cryptocurrencies

Among super-profitable ones, crypto investments have become trendy. The price for such assets has been sky-rocketing for the last three years. However, after incredible growth, cryptocurrencies switched to downtrends and flats. But the uptrend managed to restore, and since this year, the price for the BTC has grown from 7,500 USD to 19,850 USD. For example, if you bought the Bitcoin for 1,000 USD at the beginning of 2020, you could receive 2,500 USD today, which makes 1,500 USD of profit.

Today, people are investing in cryptocurrencies again. A company that heated the market tangibly is PayPal that made storing and buying crypto possible for citizens of the USA. In the company, they say that the demand for such services turned 3-4 times higher than expected. Investment funds are also considering cryptocurrencies as potentially profitable and add them to their strategies.

Investments in gold

We have discussed investing in this precious metal in the article “How to Invest in Gold?”. The easiest way was, again, investing in CFDs. Such contracts allow for buying and selling gold without purchasing it physically, just making money on the difference in the prices.

At the beginning of 2020, gold cost 1,550 USD per troy ounce. In August, the quotations reached a high of 2,072 USD; currently, they are trading at 1,846 USD. By buying the instrument for 1,000 USD at the beginning of the year, you could make a good profit in the middle of the year already. As for the long run, the pandemics might cause investors to buy gold, which will provoke another increase in the price of the precious metal.

The growth of gold is unlikely to be as impressive as that of cryptocurrencies as it is a more conservative investment instrument. Anyway, many traders these days compare gold and the BTC noting that the latter is replacing the precious metal because it is to move and pay with, and it is supported by traders’ interest.

As for the charts, the crypto prices are at their highs while the gold price dropped from 2,070 to 1,846 USD. Cryptocurrencies are more volatile while conservative investors prefer gold.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

RoboForex: changes in trading schedule (Christmas and New Year holidays)

Dear Clients and Partners,​

We’re informing you that during Christmas and New Year holidays, instruments will be traded according to an altered schedule*.

MetaTrader 4 / MetaTrader 5 platforms

Trading schedule for DE30Cash

• From December 24th, 2020 to December 25th, 2020 – no trading.
• From December 31st, 2020 to January 1st, 2021 – no trading.
• January 4th, 2021 – trading starts as usual.

Trading schedule for other instruments

• December 24th, 2020 – trading stops at 7:00 PM server time.
• December 25th, 2020 – no trading.
• December 31st, 2020 – trading stops at 8:00 PM server time.
• January 1st, 2021 – no trading.
• January 4th, 2021 – trading starts as usual.

R Trader platform

Trading schedule for GER30

• From December 24th, 2020 to December 25th, 2020 – no trading.
• From December 31st, 2020 to January 1st, 2021 – no trading.
• January 4th, 2021 – trading starts as usual.

Trading schedule for UK100, SPA35, FRA40

• December 24th, 2020 – trading stops at 12:00 PM server time.
• December 25th, 2020 – no trading.
• December 31st, 2020 – trading stops at 12:00 PM server time
• January 1st, 2021 – no trading.
• January 4th, 2021 – trading starts as usual.

Trading schedule for US Stocks, ETFs, CFDs for US Stocks and ETFs

• December 24th, 2020 – trading stops at 7:00 PM server time.
• December 25th, 2020 – no trading.
• December 31st, 2020 – trading stops at 8:00 PM server time.
• January 1st, 2021 – no trading.
• January 4th, 2021 – trading starts as usual.

Trading schedule for CFDs for EU Stocks

• From December 24th, 2020 to December 25th, 2020 – no trading.
• From December 31st, 2020 to January 1st, 2021 – no trading.
• January 4th, 2021 – trading starts as usual.

Trading schedule for other instruments

• December 24th, 2020 – trading stops at 7:00 PM server time.
• December 25th, 2020 – no trading.
• December 31st, 2020 – trading stops at 8:00 PM server time.
• January 1st, 2021 – no trading.
• January 4th, 2021 – trading starts as usual.

cTrader platform

Trading schedule for all instruments

• December 24th, 2020 – trading stops at 7:00 PM server time.
• December 25th, 2020 – no trading.
• December 31st, 2020 – trading stops at 8:00 PM server time.
• January 1st, 2021 – no trading.
• January 4th, 2021 – trading starts as usual.

Please, take into account these changes in the schedule when planning your trading activities.

* – This schedule is for informational purposes only and may be changed by the provider.

Sincerely,
RoboForex team

 

[Vlad RF]

How Does Gold Influence on Forex?

Author: Victor Gryazin

Dear Clients and Partners,​

Gold is one of the first metals that people learned to mine, process, and use. First gold artifacts belong to the pre-dynastic period in Ancient Egypt, i.e. about 5000 B.C. Thanks to being beautiful, rare, and durable, gold has always been used as a universal exchange means, an analog of money.

In this article, we will discuss how the fluctuations of gold quotations influence the prices on Forex.

Gold standard

The gold standard is a monetary system that emerged as a result of the wide use of gold as a universal currency. The gold standard guarantees that all the issued money can be exchanged for the corresponding amount of gold on demand. In transactions between countries that use the gold standard a fixed exchange rate of the currencies is used, based on the standard.

The gold standard that was in force after WW2 was accepted at a conference in Bretton Woods. According to the international agreement, the USA was committed to providing for the gold standard of 35 USD per troy ounce of gold. Only countries represented by their Central banks got the right to exchange dollars for gold. So, at that time the USD was really supported by gold and acquired the status of the global reserve currency.

The epoch of the gold standard ended in 1971 when the USA abandoned the free exchange of the USD for gold. The main reason for the collapse of the Bretton Woods system is the excessive quantity of dollars issued by the USA that were not supported by gold anymore. Since then, the amount of dollars in the world economy keeps growing, currency rates are set by the market, while gold is growing more expensive every year, renewing all-time highs.

This year, gold set another record, rising above 2,000 USD per troy ounce. And the growth of gold is likely to continue because the USA keeps printing dollars and pouring them into the global economy.

Which currencies are influenced by gold?

The price of gold can influence the rates of almost all currencies. Changes in the demand for and supply of gold affect the USD firsthand because the price of gold is usually given in the USD. Also, the dynamics of gold prices significantly influence those countries that produce the metal at a scale, important for their economies.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, RoboForex's project called ContestFx offers you the following exciting competitions:

The 117th competition of "Demo Forex" is running on "full speed".
The 290th competition of "Week with CFD" has just started today.
423rd competition of "Trade Day" will start on 23.12.2020 at 12:00.
The "KingSize MT5" competition will not be held this time.

For those of you who have never taken part in our contest, it will be enough to go through a simple registration procedure, after which, participation in any of the desired competitions will be available in just a couple of mouse clicks.

We're looking forward to your joining in and wish you good luck!

Sincerely,
RoboForex Contest

 

[Vlad RF]

How Does Crude Oil Price Influence USD/CAD?

Author: Maks Artemov

Dear Clients and Partners,​

Oil has become an intrinsic part of our lives, and humanity depends fully on it: oil is not just a source of energy but also the material from which many everyday things are made.

It has long been argued that only large corporations can make money on crude oil but this is wrong. Most types of oil are available for trading in the stock market, the most popular types are BRENT and WTI. The USD is the most widespread currency in the world, used for the biggest part of transactions. The majority of wealthy people keep their capital in the USD. The Canadian dollar is less popular over the globe. It is a commodity currency, which means it reacts actively to commodity prices, oil and gold in particular.

Today, we will discuss the interaction and correlation of oil prices and the CAD. If you look closely at the charts of BRENT and USD/CAD, you will notice certain patterns in the dynamics of the assets. As long as the Canadian economy depends on oil production and selling, USD/CAD quotations correlate with oil ones.

What is the correlation?

Correlation is the way assets relate to one another at a certain period.

There are three types of correlation:

• Positive – correlation means that two instruments are going in one direction during the observation time. The observed assets will rise or fall proportionately. The charts are similar.
• Negative – correlation means that the assets are going in the opposite direction. While one asset is growing, the other one will be declining. The charts look mirror-like.
• Zero – correlation means that the instruments are acting with no obvious relation to each other.

The CAD starts growing when the country sells its oil at a higher price. The pricier oil becomes, the better for the Canadian economy thanks to the profit it makes.

As long as in the USD/CAD pair the US dollar comes first, the correlation will be negative. This means that the growth of oil will cause a price chart of USD/CAD to fall.

How USD/CAD correlates with BRENT and WTI on the chart

On the chart, the USD/CAD pair is in a downtrend, renewing the lows. From time to time, the quotations correct but this does not take long. As a result, the US dollar loses to its Canadian counterpart.

BRENT on D1 has been in an uptrend for a month already. Regardless of a drawdown, it is recovering.

WTI on D1 demonstrates a similar picture to that of BRENT. It has been growing for a couple of months and keep recovering from all pullbacks.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team