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Trade Gold

Knowledge of, and trading in Gold is essential to every serious market trader. Gold has a rich history dating back early civilization. As a precious metal, it has been considered a symbol of prosperity and success across many cultures. Throughout the world it has been used primarily as the accepted standard of monetary exchange, which was only abandoned with the establishment of government issued flat currency. Gold continues to remain an important asset, and in modern market terms as a safe haven used by many, in times of economic instability.

FUBON offers Gold trading to all individuals. Gold is mainly traded against the USD and EURO, its symbols are XAU/USD OR XAU/EUR. The beginning of the 21th century has witnessed one of the longest and most consistent rises in the gold rate ever recorded. From early market prices of US$ 265 per ounce at the beginning of 2001, to more than US$ 1700 within a decade. The percentage gain translates to a 641% rise, which is a dramatic shift in comparison to the 20-year long bear market that had existed previously.

* The performance figures quoted refer to the past and past performance is not a guarantee of future performance or a reliable guide to future performance.


WHY TRADE GOLD THROUGH FUBON?

FUBON recognizes how important trading Gold is to any investor who takes the market seriously. As a result FUBON understands how important it is to provide the trader with the best possible market conditions.

  1. Fast Execution & Tightest Spreads Available.
  2. Trading Gold via Multiple Platforms (Web, Desktop, Mobile).
  3. Balanced Leverage and Exposure , 1:100 , 1% of transaction value.
  4. Flexibility of trading fixed spread Gold or variable ECN spread

Gold Trading Conditions

1 Lot
(100 ounce)
Minimum Lot for trade
0.1 Lots = 10 ounces
Pip Value
1.0 Lot=$1
Pip Size (Increment)
0.01
Instrument Spread ECN
(Average Spread)
Leverage ECN Leverage Lot Size Min. Trade ECN Min. Trade Roll Sell Roll Buy
GOLD: XAUUSD 60 50 1:100 1:100 100 0.1 Lots 0.1 Lots -2.6000 -0.0125
GOLD: XAUEUR 60 50 1:100 1:100 100 0.1 Lots 0.1 Lots -1.1375 -1.5375

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 and may not be a reliable indicator

*** 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.

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