Your capital is at risk. You may lose all of your invested capital.
Metals
Investors include metals in their portfolio as a hedge against inflation. Precious metals like gold and silver are considered safe haven investments during periods of economic and geopolitical uncertainties. Often metals prices fluctuate wildly, posing a substantial risk to traders, while also offering opportunities to make significant earnings. Since prices of metals, like precious metals, are impacted by factors different than those impacting currency exchange rates and the stock market, adding metals to your portfolio allows you to diversify your trades and improve your risk-adjusted returns.
Metals advantages:
- Trading is available 5 days a week;
- Permanently high liquidity;
- Investment alternative to currency trading;
Specification of contracts:
| Instruments | Silver Account | Raw Spread Account |
|---|---|---|
| Spreads | ||
| GOLD | 1.00 | 0.10 |
| SILVER | 1.00 | 0.05 |
Metals margin calculation:
Metals mainly contain gold and silver. Each 100 ounces of Gold is represented as 1 lot, and each 5000 ounces of Silver is represented as 1 lot.The price of gold is known to be $1237.02 per ounce, the price of silver is $14.446 per ounce, the price of EURUSD is 1.13750, and the price of GBPUSD is 1.27387.
The margin calculation for precious metal products works as follows:
Required Margin = Trade Size (0z) / Leverage * Market Price
Case example
- Case 1:Assume someone wants to buy 1 lot of gold at the current price. What is the required margin?
- 1) If the currency of the account is in USD, the required margin is: 1*1237.02*100/20=6185.1(USD)
- 2) If the currency of the account is in EUR, the required margin is: 6185.1/1.13750=5437.45 (EUR)
- 3)If the currency of the account is in GBP, the required margin is: 6185.1/ 1.27387=4855.36 (GBP)
- Case 2:Assume someone wants to buy 1 lot of silver at the current price. What is the required margin?
- 1) If the currency of the account is in USD, the required margin is: 1*14.446*5000/10=7223.00(USD)
- 1) If the currency of the account is in EUR, the required margin is: 3611.5 / 1.13750 = 6349.89 (EUR)
- 3) If the currency of the account is in GBP, the required margin is: 3611.5 / 1.27387 = 5670.12 (GBP)