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.
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.
|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 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.
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.
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.
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:
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.