Let’s imagine a hypothetical scenario. You bought gold some years ago. You were waiting for the price to go up and it did. Now your Gold is 2x and you want to sell it fast.
You go to the market but everyone’s trying to take advantage of your urgency. No one’s offering a fair price. Now you’re angry and are likely seeing all your gains crash.
Now you’re hating buying Gold in the first place. But is it the right mindset? Well buddy, you could’ve saved yourself the trouble had you taken two way pricing!
Two way pricing?? What in the world is that? Stick around to find the solution to your problem!
What in the world is Two Way Pricing?
In Forex, two-way prices are set based on current market conditions. They allow traders to buy and sell currencies instantly.
The bid price of a currency pair represents the price buyers are willing to pay for the currency pair, while the asking price means the price sellers are willing to sell the currency pair for. The spread is the difference between the bid and ask prices.
Although two-way pricing is widely known in the Forex world, only some platforms in the Gold sector offer their clients the same facility.
We at ISA Bullion are proud to stand out from the rest of the competition by providing you with two-way pricing in commodity trading in the world.
In this article, we’ll discuss two-way pricing for Gold and Silver. Additionally, we will give you tips on making successful trades when it comes to trading gold online. So without further ado, let’s get started.
Two-way pricing in Gold and Silver trading:
In the case of Gold and Silver Trading, we provide you with two prices: First, we offer you the price at which you will purchase the asset. Second, we offer you the price you will sell the asset.
In case you need to sell Gold quickly and are looking for a quick way to liquidate your gold reserves, we can repurchase it from you at the price at which it was sold.
Benefits of two-way pricing
There are many benefits to trading gold online with ISA Bullion’s two-way pricing model, including:
Pre-agreed price for selling gold
When customers have an asset they want to sell urgently, they often don’t get a fair price from the market. With ISA Bullion’s two-way pricing, you can sell Gold and Silver back to us at a pre-agreed price.
When you purchase Gold or Silver from ISA Bullion, you can rest assured that you will receive the price agreed upon at the time of purchase.
A transparent process
If you get both prices from the start, you will have all the necessary transaction information at your fingertips. This guarantees that the transaction will be as honest as possible, with no room for shady deals or substandard quality of the gold.
A two-way pricing system saves you hours trying to figure out how to negotiate your Gold selling price. The asking price is already displayed, so you can decide if it’s worth proceeding.
Two-way pricing helps you manage liquidity costs by displaying the bid-offer spread. This ensures you don’t run into negative trading when chasing gold investments.
Understanding two-way pricing
Two-way pricing is one of our top features, so understand its importance. This section covers all you need to know:
Buying and selling prices
The buy-sell price is determined at the time of your Gold purchase, which is the difference between the listed price and the selling price you agree upon with us.
Commodity sell to Us Anytime
If you get an unfavorable price in the market, you have the option to sell the gold back to ISA Bullion at our pre-agreed price. This will save you from losses if you sell the gold back to ISA Bullion at an unfavorable market price.
Steps to trading gold successfully
These are four easy ways to get started with gold trading:
Get to know what moves gold
In the financial world, gold has become irreplaceable. However, its value depends on factors affecting market volume and trend intensity. These include:
- Supply and demand
- Inflation and deflation
- Greed and fear
During trading, you need to be aware of which factor is operating at any given time so that you don’t expose yourself to more risk.
Some investors have opposing interests when it comes to gold. First, there are gold bugs that collect physical bullion. Moreover, the gold bug family allocates many family assets to gold options and futures. Instead of following downtrends in the market, the gold bug family buys gold at low prices, which adds liquidity to gold’s demand.
A large amount of hedging activity occurs with gold. Institutional investors buy and sell gold in combination with currencies and bonds. These strategies are developed by matching growth with safety through quick algorithms and are commonly used in markets with low public participation. They are known as “risk-on” and “risk-off.”
Take a look at the long-term chart.
Master the gold chart, beginning with the 100-year history. The precious metal has created lasting trends, but its value has also dipped, which is bad for gold enthusiasts. This analysis shows price levels that need to be examined to understand how gold behaves.
As gold entered an upward trend in the late 1990s, it peaked at $2,235 in February 2012. Then, over the next four years, it dropped 600 points.
The price of gold rose 10% in the first quarter of 2016, the biggest gain in three decades. It is currently trading at $1,650 an ounce.
Gold trends are followed by liquidity, which increases or decreases depending on market conditions and impacts the metal’s price.
An SPDR Gold Trust Share has the highest participation across all market environments and very tight spreads that can drop as little as one penny. It has an average trading volume of over 6.7 million for this month.
Trade gold with two-way pricing:
By taking advantage of two-way pricing, you can buy and sell Gold at good rates at any time, ensuring that losses are kept to a minimum in case the market dips badly.
As a new trader, you can start gold trading at ISA Bullion and use the two-way pricing feature whenever possible because knowing the actual commodity buy and sell prices makes it easier to execute gold trades in real time.