Trading Precious Metals
Due to their haven status, many traders choose to incorporate precious metals into their investments to weather various market conditions, including volatile, rising and falling markets.
Trade a selection of spot metals and unlock great hedging opportunities for your financial portfolio.
Gold Trading Example
Opening the Position
Opening price of the GOLD against the US Dollar (XAU/USD) is 1250.00
You decide to buy 1 standard lot (the equivalent of 100 ounces) at 1250.00.
Margin required to open the position is 1*100*1250.00*1/100=USD $1250
Closing the Position
Closing Price of the GOLD against the US Dollar (XAU/USD) is 1274.50
One week later the Gold has risen against the USD to 1274.50, you decide to take your profit by closing your buying position
Market movement= 1274.50 – 1250.00 = 2450 ticks (24.5*100)
Gross profit on Trade = USD $ 1*2450 = USD $ 2450