Gold
Trading
31 October 2022

Benefits of Two-Way Pricing in Gold Trading with ISA Bullion

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Two-way prices are set based on the current market conditions in Forex. They allow traders to buy and sell currency pairs instantly. Remember those two figures side by side in Forex? → 

Buyers normally bid for a currency pair which is the price they are willing to pay for it While Ask is the price sellers are willing to sell a currency for. The difference between the bid and ask price is what is known as the spread. 

Although this is common in the Forex world, very few Gold trading platforms offer such a facility to their clients. ISA Bullion is proud to be one of the rare Trading platforms that offer you two way pricing in commodity trade.

In this blog, we’ll discuss two way pricing for Gold and Silver.  We will also give you tips on how to make successful trades when trading gold online. So without further ado, let’s get started. 

What is two-way pricing in Gold and Silver trading?

When you purchase Gold or Silver, we offer you two different prices. The first is the price at which you will purchase the asset. The second is the price at which you will sell the asset. 

In case you need to sell Gold urgently and are looking for quick liquidity, we are willing to buy it back from you at the selling price. 

Advantages of two-way pricing

When trading gold online with ISA Bullion, the two-way pricing model has many perks. These include:

Sell Gold at a pre-agreed price

ISA Bullion’s two-way pricing gives you the power to sell Gold or Silver at a pre-agreed price back to us. Oftentimes, when clients have an asset and they want to sell it urgently, they don’t get a fair price from the market. 

By purchasing Gold or Silver from ISA Bullion, you’ll get the price you agreed upon at the time of purchase. 

Transparency

By getting both prices from the start, you get all the necessary transaction information. This guarantees the deal as honest, with no room for any shady business or substandard Gold quality.

Saves time

Two-way pricing saves you hours trying to figure out the best way to negotiate your Gold selling price. The asking price is already displayed, so you can decide if it’s worth proceeding with or not.

Cost effectiveness

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 make sure you understand its importance. This section covers all you need to know:

The Buy-sell price

The buy-sell price will always be determined at the time of your Gold purchase. This is the difference between the listed purchase price and selling price you agree upon with us while acquiring your asset. 

Sell the Commodity Back to Us Anytime

You can sell the Gold back to ISA Bullion at any time. This means that if you’re getting an unfavorable price in the market, you can sell the Gold back to ISA Bullion at our pre-agreed price saving you from potential loss.  

4 steps for trading gold successfully

If you’re trading gold and want to add it to your portfolio, here are 4 easy to get started:

Know what moves gold

Gold has become indispensable in the financial world. However, the value of the precious metal is determined by factors that affect volume and market trend intensity. These forces include:

  • Supply and demand
  • Inflation and deflation 
  • Greed and fear

You need to know which factor is operating every moment so you’re not exposed to more risk while trading.

Understand the crowd

Gold pulls in a diverse crowd of investors, with some having opposing interests. First, there are the gold bugs who collect physical bullion. They also allocate a sizable portion of family assets to gold options and futures. The gold bugs aren’t affected by downtrends in the market. Instead, they buy gold at low prices, which adds liquidity to the commodity’s market. 

Gold also attracts enormous hedging activity. Institutional investors buy and sell in combination with currencies and bonds. This happens using bilateral strategies known as “risk-on” and “risk-off.” They are created by matching growth and safety through quick algorithms. This strategy is common in markets where public participation is low.

Read the long-term chart.

Take time to master the gold chart, starting with its over 100-year history. Beyond creating lasting trends, the precious metal has also dipped in value which has been bad for gold bugs. This analysis shows price levels that need to be studied to understand gold’s behavior. 

The downward trend from the mid-1980s continued into the late 1990s. From that point, gold entered an upward trend, reaching a peak of $2,235 in February 2012. After that, however, it dropped 600 points in the next four years. 

Gold made a 10% surge in the first quarter of 2016, which was its quarterly gain in three decades. It’s currently trading at $1,650 per ounce this month.

Choose your venue

Gold trends are followed by liquidity which increases or decreases based on the market situation. These changes impact the price of gold in the commodities market.

The SPDR Gold Trust Shares have the greatest participation in all market environments. It also has very tight spreads that can drop to one penny. The average trading volume for this month is over 6.7 million and offers easy daily access. 

Get Two-way Pricing When Trading Gold with ISA Bullion

Through two-way pricing, you can buy and sell Gold at good rates at any time. This ensures minimal losses in case the market dips badly. 

You can start trading at ISA Bullion and use our two-way pricing feature whenever you want. Knowing the actual commodity buy and sell prices make it easier to execute gold trades in real time. 

So sign up now and start trading Gold and Silver online with zero stress and maximum freedom. 

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