Trading Spots
If the client wishes to speculate on gold believing that gold price will strengthen (going long), then the client will buy an (X) number of contracts of gold (each contract being 100 oz) say at $275/oz. This trade is called (opening buy).If the gold price appreciates and the client wishes to close the position when the quote is $283/oz, then the client will sell the contract/s of gold at this price (closing sell). The profit that results from this trade is calculated by subtracting the purchase price from the selling price and multiplying it by the size of the trade (profit/loss calculation).Selling Price-Purchase Price x Size of Trade= Profit/Loss
$283-$275x100oz=USD 800 Profit
If the price of gold moves in the opposite direction then loss will be incurred.
If the client wishes to speculate on gold believing that the price of gold will weaken then the client needs to sell gold, and say sell at a price of $282 /oz (going short)(opening sell).
If the price goes down to $272/oz and the client decides to buy the gold (closing buy) thus realizing a profit of $10/oz i.e. $10x100 oz a profit of $1,000. If the price moves in the opposite direction then a loss instead of profit will be incurred.
Our trading platform contains the following Precious Metals Spots Traded Instruments:
| Instrument | Execution | Spread | Type of Spread | Pending Orders | Orders | Contract Size | Maximum Number in IE execution | Margin | Margin on Hedge |
|---|---|---|---|---|---|---|---|---|---|
| SPT_Gold (Spot Gold) | Instant | 50 pips |
Fixed | 200 pips | GTC | 100 Troy Ounces | 25 | 1000 USD | 0 |
| SPT_Silver (Spot Silver) | Instant | 5 pips |
Fixed | 20 pips | GTC | 5000 Troy Ounces | 25 | 1000 USD | 0 |
