Trading gold
- Thread starter yabz
- Start date
GLD will track gold price without any event risk
as it is ETF not a mining company
yes the XAU components usually follow spot gold price movements but have that event risk that
all stocks have .
ecbot has mini gold futures YG that might be of interest as they trade longer hours than any equity and track the COMEX as well as ZG traded products on the ecbot
futures though are a different animal than stocks
and are more leveraged as well as treated differently come tax time.
one more possibility is SSF ( single stock futures )
but that limits you to whatever mining names they trade there
as it is ETF not a mining company
yes the XAU components usually follow spot gold price movements but have that event risk that
all stocks have .
ecbot has mini gold futures YG that might be of interest as they trade longer hours than any equity and track the COMEX as well as ZG traded products on the ecbot
futures though are a different animal than stocks
and are more leveraged as well as treated differently come tax time.
one more possibility is SSF ( single stock futures )
but that limits you to whatever mining names they trade there
That's why I usually trade NEM. The options seems to be the most liquid for some reason, more so than XAU. It has become, perhaps, the preferred instrument for gold speculators.
Neither YG or ZG seem to have any options available on them. I trade options exclusively.
The problem with GLD would seem to me to be insufficient volatility. The gold price fluctuates on average 10% a year, so for the purposes of speculation, the commission and margin requirements make it poor value. For a long term investment in gold I think I'd prefer gold bars.
Thanks for all the replies....
There should be some more conservative options strategies for low volatility market such as gold, no?
I frequently trade metal futures and options. Few equity options are as liquid as gold or silver options, and COMEX MMs will quote bid/offer for option or futures spreads.