23August2017

Winter Forex

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:

InstrumentExecutionSpreadType of SpreadPending OrdersOrdersContract SizeMaximum Number in IE executionMarginMargin 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

Click here to read all Contract Specifications