With the price of gold hitting all-time highs, many traders are wondering if gold trading is a great way to earn extra profit. One way to do this is through trading the gold futures contract. This is where you are speculating that the price of gold will go up or down in the future. Historically speaking, gold has been a great long-term investment in times of economic uncertainty or crisis. Given the fact that the world is currently in a financial crisis and has many different international tensions, flaming gold shows why it is a great investment in challenging times.

There are many ways to profit from the up and down movements in the price of gold. One way is to play the long side, which is where prices are speculated to rise in the future. Another way is to play on the short side, which is when prices are speculated to fall in the future. When you are going to trade any of the different commodities, it is important to pay attention to the tick that is taking place.

This is where as the futures contract is bought or shorted, it is reflected with a positive tick to the upside or a negative tick to the downside. What you want to do is enter a position at a negative tick down if you plan to go long or a positive tick up on the short side, which will help you enter the futures contract at the right time. A common strategy used to trade gold is the straddle, which is where you go long and short at the same time. The idea is to buy both contracts at the same price and term so that you can take advantage of the volatility to make money.