Gold Trading Hours
Gold is traded from Sunday at 23:00 GMT to Friday at 20:00 GMT. It is important to note that there is a daily break in gold trading services between 21:00 GMT and 22:00 GMT, market trading in Gold resumes at 22:00 GMT. During the break period, no trading, or placement of orders will be possible.
Margin Requirements for Gold Positions
In a standard 1:100 leveraged trade, 1% of the transaction value must be set aside to cover the margin requirement. As a result, for every $1 in your account you are able to control $100 in the market.
Gold Trading Examples
Beyond definitions, it’s essential to see how Gold positions look in the actual market. The most straightforward way is by going through the calculations involved.
Let’s take a 10 ounce XAU/USD (“Mini-Lot” or 0.1 Lot) position bought at a market price of $1700 per/ounce. The USD value of the position will be: 10 ounces X $1700= $17,000 . With a margin requirement of 1% (1:100 leverage) the result will be $170 required to open the position.
Now, let’s take a 100 ounce XAU/EURO (1.0 Standard Lot) position bought at a market price of €1320 per/ounce. The Euro value of the position will be: 100 ounces X €1320= €132,000. With a margin requirement of 1% (1:100 leverage) the result will €1,320 required to open the position.
Gold CFD Rollover (Swaps)
In both commodities and foreign exchange markets a rollover/swap, is the interest that is added or deducted in order to secure an open position overnight. Rollover/swap rates are calculated as the overnight interest rate differential between the two currencies on which the position is held comes due, depending on the position type (Buy (Long) / Sell (Short).
* Please Note:All rollover fees for all CFD's including: 'Gold','Crude-Oil','Silver' & 'Indices' will be charged a 1% flat fee.
It is important to consider the following aspects of rollover/swap charges:
Rollover/Swaps are charged on client’s Forex accounts only on the positions kept open into the next forex trading day
The rollover process begins at the end of the US market trading session.
The Gold rates below are calculated and based on USD accounts per 1 standard lot
The rollover/swaps are calculated and applied on every trading night. On Wednesday night rollover/swaps are charged at a triple rate(please read through explanation below)
Some additional information regarding Precious Metal Rollover/Swaps
At FUBON rollovers are dealt with on a "spot" basis only. Meaning that all positions are settled two business days from inception, as per market rules. FUBON will not facilitate actual physical delivery of either precious metals/currency. As a result, all positions that are open from 23:59:45GMT to 23:59:59GMT (Server time) are rolled over to a new value date. These trades are then charged or credited the relevant rollover as shown in the table above.
Very Important: When an open trade is rolled over from Wednesday to Thursday on trade, the new value date shifts to Monday of the next week. As a result, the rollover charge on Wednesday evenings will always be three times the value shown in the above table. In general it should be understood that in the case of factoring in weekends and holidays, the rollover/swap is multiplied by the number of days of the rollover.
* The above illustrations are mere fictitious examples and are not to be construed in any way to constitute investment advice.
** The performance figures quoted are only estimates and may not be reliable indicator of future performance of this investment.
*** This information does not constitute an offer or solicitation and is provided for information shall not be deemed to constitute advice and should not be relied on as such to enter into a transaction or for any investment decision. Any opinions expressed in this document represent the views of FUBON at the time of preparation. They are thus subject to change without notice. FUBON believes that the information contained herein is accurate as at the date of publication. However, no warranty of accuracy is given by FUBON and no liability in respect of any errors or omissions, including any third party liability, are accepted by FUBON or any director, officer or employee.