Example - Spot Metal
Imagine market is showing a price of 800.00/800.40 for Spot Metal Gold. You believe the price of Gold will rise so you place a buy of 100 ounce at an offer of 800.50
| Opening Trade |
|
| Price Shown |
800.00 (Bid) / 40 (Offer) |
| Sell Price |
800.00 |
| Quantity Size |
100 oz |
| Margin Required (2%) |
100 x 800.00 x 1% = $800.00 |
| Commission |
$20.00 |
The Gold depreciates against the US Dollar and the client wishes to close the position. market is now quoting 605.50/ 606.00
| Opening Trade |
|
| Price Shown |
794.50 (Bid) / 795.00 (Offer) |
| Buy Price |
795.00 |
| Price/Point Movement |
500 points or $5 |
| Gross Profit/Loss |
500 x $1 = $500 profit |
| Net Profit/Loss |
$500 - (Commission $20) = $480 |
