Precious Metal Introduction
Why invest in precious metals?

Resist Inflation
The market has proven demand for these products for many years, including individual investors and institutional investors, whether for speculation or risk hedging.

Adequate Market Circulation
The market demand is not driven by any individual geopolitical situation, and many sensible investors trade precious metals to diversify their portfolios and hedge their positions, even as the market declines.

Two-way Transaction
The precious metals market is constantly changing, and there is always an opportunity to trade to choose a currency that depreciates or appreciates relative to another currency. Therefore, investors can make a profit by buying or selling strategies.

24-hour T+0 Transaction
The trading hours of precious metals, based on London time, formed a continuous trading market in London and New York (Chicago). London’s early morning pricing at 10:30 am opened the North American gold market.
Transaction Details
MarginThe margin requirement is 2%, which is 1:50 leverage.
Instrument | Contract Size(1 lot) | Min Trade Size (lot) | Max Trade Size (lot) | Floating Average Spread | Instrument | Contract Size(1 lot) | Min Trade Size (lot) | Max Trade Size (lot) | Floating Average Spread |
XAU/USD | 100oz | 0.01 | 10 | 13 | XAG/USD | 5000oz | 0.01 | 10 | 13 |
Not-tradeableOffer quotes only, not-tradeable.
Instrument | Contract Size(1 lot) | Min Trade Size (lot) | Max Trade Size (lot) | Floating Average Spread | Instrument | Contract Size(1 lot) | Min Trade Size (lot) | Max Trade Size (lot) | Floating Average Spread |
XAU/AUD | 100oz | 0.01 | 10 | – | XAU/EUR | 100oz | 0.01 | 10 | – |
XAU/JPY | 100oz | 0.01 | 10 | – | XAG/EUR | 5000oz | 0.01 | 10 | – |
Transaction Example
Selling gold contracts (XAUUSD)
1 lot of XAUUSD is 100 ounces.
A customer believes that the valuation of XAUUSD is too high and will fall in the future. In response to this situation, the customer decided to sell XAUUSD.
Assuming XAUUSD is quoted at 1285.50/40 , the customer sells 7 lots of XAUUSD at 1280.40.
When the price of XAUUSD fell to 1282.50/40, the customer decided to close his trade. He bought 7 lots of XAUUSD at 1282.50.
Transaction Description | Profit/Loss |
Sell 7 lots of XAUUSD with a price of 1285.40 | 1285.40*100*7=899,780 USD (Contract Value) |
The margin requirement is 2% | 899,780*2%=17995.6USD Initial margin (will change due to market price) |
The commission is 0.0036% of the contract value (unilateral) | 899,780*0.0036%*2=64.78 USD (It is assumed that the closing price is the same as the opening price, so the commission will change due to market price.) |
Close 7 lots of XAUUSD (buy), the buying price is 1282.50 | (1285.40-1282.50)*100*7-64.78 = 1965.22 USD Profit |