Real-time Market Data

Gold Grams
Gold Gr
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Specifications
Gold Ounce
Gold Oz
Change -.- ( -.- %)
Specifications

How to trade Gold and Oil

Why trade gold and Oil

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・ Gold and the US dollar are negatively correlated, with gold often used as a hedge against a weak dollar.

・ Catching the end of a dollar downtrend you buy 100 ounces of spot Gold at 1255.35.

Buy

・ You have an account balance of 10,000 USD. According to our dynamic leverage you receive 1:200 on your chosen trade size.

Your money Leverage 1:200

・ Required margin is calculated by multiplying the trade size by the price, divided by the leverage (100 * 1255.35 / 200 = 627.675). Read more how margin and leverage works.

Your money Leverage 1:200 Margin

・ Your required margin is $627.68. This is the amount of your 10,000 USD balance that is required to guarantee the trade.

・ You close your Gold trade when the price reaches 1271.41. This earns you 16.06 USD per ounce, or $1606 dollars in profit (1271.41 – 1255.35) * 100 = $1606).

Buy + 1606$ Close

・ In anticipation of particularly weak NFP numbers coming out of the US you purchase 1KG of Spot Gold at 40.50 USD per gram.

Buy

・ You have an account balance of 20,000 USD. According to our dynamic leverage you receive 1:200 on your chosen trade size.

Your money Leverage 1:200

・ Required margin is calculated by multiplying the trade size by the price, divided by the leverage (1000 * 40.50 / 200 = 202.5).

Your money Leverage 1:200 Margin

・ Your required margin is $405. This is the amount of your 20,000 USD balance that is required to guarantee the trade.

・ You close your Gold trade when the price reaches 48.20 USD per gram. This earns you 7.70 USD per gram, or $7700 dollars in profit (48.20 – 40.50) * 1000 = 7700 USD).

Buy + 7700$ Close

・ With Crude oil approaching record lows not seen since the 2008 crisis you decide that it has hit a support level and purchase 1000 barrels of Brent Crude Oil at 43.40 per barrel.

Buy

・ You have an account balance of 50,000 USD.

Your money Leverage 1:50

・ When trading Brent Oil, the leverage is fixed at 1:50, meaning a margin requirement of 2%. This is therefore calculated as: 0.02 X Number of barrels X Market Price

・ In this example, the required margin is calculated as 0.02 (1:50 leverage) X 1000 (barrels) X 43.40 (Market Price)= $868

Your money Leverage 1:50 Margin

・ You close your trade when the price reaches 53.71 USD per barrel, an increase of 1031 ticks. This earns you $10 per tick, or $10,310 dollars (53.71 – 43.40) * 1000 = $10,310).

Buy + 51.550$ Close

Margin and leverage can be confusing at first but they are very easy to understand.

・  Margin is the amount of money you need in your account in order to guarantee a trade you would like to make. You can think of it as a deposit on the asset you are trading.

・  Leverage is the amount your broker allows you to borrow, in order to multiply the spending power of your own capital (you pay no interest on this loan).

So, if your broker offers you 1:100 leverage and you have 1000 in your account, then you effectively have 100,000 to trade with.

100 000 1:100 1000

Leverage and margin are interconnected. The more leverage you use, the less margin you require.

For this reason, leverage can also be expressed as required margin.

So, if your broker requires you to post 1% margin for a trade, it’s the same as using 1:100 leverage. This is because you are only required to post 1/100th of the value of the trade, meaning that your investment in this specific trade is multiplied by 100 (100 / 1 = 100).

Similarly:

2% required margin = 1:50 leverage (100 / 2 = 50)

5% required margin = 1:20 leverage (100 / 5 = 20)

0.5% required margin = 1:200 leverage (100 / 0.5 = 200)

While leverage multiplies the value of your investment, it can also magnify your losses if the market goes the other way.

At FxPro we offer guaranteed negative balance protection, preventing your account from going below 0, so regardless of how much leverage you are using you cannot lose more than you invested. However in order to protect your account from going to 0 in the first place it is wise to have sufficient funds in your account in order to protect your open positions from price volatility.
Ho to open a Trading Account

・  Click on ‘Open trading account’

Open Trading AccountTrading CFDs involves significant risk of loss

・  Fill in the online form and upload your documents

・  Click to complete. You will be automatically logged into FxPro Direct.

・  From here you can launch MT4 WebTrader by clicking the ‘Launch MT4 WebTrader’ button on the left of     the page, doing so will automatically log you in. Alternatively you can download our MT4 desktop platform at the bottom of the page. Install the platform and use the credentials you received in your confirmation email to log in.

How to open a Demo Account

・  Fill in the online form on this page

・  Click to complete. You will automatically be logged in to FxPro Direct.

・  From here you can launch MT4 WebTrader by clicking the ‘Launch MT4 WebTrader’ button on the left of the page, doing so will automatically log you in. Alternatively you can download our MT4 desktop platform at the bottom of the page.

・  Install the platform and use the credentials you received in your confirmation email to log in.

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Gold is a store of value and safe haven asset in turbulent economic times. It is normally used as a hedge against dollar weakness, the two being negatively correlated.

Despite the fact that gold prices can be extremely volatile in the short- to mid-term (making it an attractive asset for traders), its value tends to rise in the long term. For this reason investors use gold as a hedge against inflation.

The price of oil impacts your daily life more than all the commodities. Without it our industries would not be able to produce or distribute anything, which would cause consumption to slow and the world’s GDP to fall.  

Oil is the universal fuel that powers our global economy. This gives countries in which it is found a huge advantage, but also often turns them into conflict zones.

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