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Trading Gold & Silver 

 

How it works

You believe the price of gold will rise based on a news event and want to buy gold to take advantage of this move. The Terminal Velocity trading platform is showing a price for gold of USD 1,498.50/ 1,499.00. You decide to buy 100 ounces of spot gold CFDs.

Opening Trade

You "BUY" 100 CFDs in respect of XAU/USD at the offer price: 100 x USD 1,499.00 = USD 149,900
No commission on Gold CFDs = 0
An initial margin of 1% is required = USD 1,499.00
Later in the day gold is trading at USD 1,510.90/ 1,510.95 per ounce and you decide to close the position for profit.
 
Closing Trade
 
You "SELL" 100 CFDs in respect of XAU/USD at the bid price: 100 x USD1,510.90 = USD151,090
As the position is closed, margin is no longer required = 0
Profit/Loss = (sell price – buy price) = 151,090 - 149,900 = USD1,190 Profit
 
So with USD$1,510.90 you could make USD$1,190 on a rate movement that would typically happen many times per day. If the rate had dropped you would have lost the equivalent amount, but as well as simple orders you can place a stop loss order to protect you against the downside.  
 

Trade Gold and Silver on MT4 - one of the most popular platforms around! 

 
Velocity Trade offers MetaTrader4, which provides Straight Through Processing for fast trades. You can choose to open a live account now and start trading on the stock market; or first open a demo account and practice trading on the same market but with virtual money. Opening either account is free, holds no obligation to trade and is as simple as filling out an application form and downloading the platform.
 
 
 

 

Before you decide to trade Margin FX & CFDs, please read our full Product Disclosure Statement (Margin) and make sure you understand the possible risks involved. Margin trading can result in both significant gains and significant losses that are substantially more than your initial investment and any margin payments.