CFDs on
Precious metals are considered to be of high economic value due to their use as investment commodities. Investing in precious metals can be done either by purchasing the physical asset, or by purchasing futures contracts for the particular metal.
With DorsiaFX, you will be able to invest in gold and silver in CFDs in the futures market for delivery on a specified future date. You will be able to trade in standard contracts, mini, and micros.
Gold CFDs futures contracts are traded for a couple of months; the delivery dates (expiration dates) for these contracts are usually at the end of the delivery month. Investors will receive a notification to close their contracts 2 days prior the delivery date. As for silver CFDs futures contracts, DorsiaFX provides those contracts according to the liquidity and trading volume in the underlying market. There will be a fixed commission deducted from your account balance upon placing an order for each contract when trading on futures.
- Per each standard contract, 7 dollars will be deducted.
- Per each mini contract, 70 cents will be deducted.
- Per each micro contract, 7 cents will be deducted.
| Name/ Symbol | Spread | Min. Fluctuation | Min. Distance for Pending |
|---|---|---|---|
| Gold/ GC | Market | 0.10 | 1 USD from market price |
| Silver/ SI | Market | 0.001 | 15 Cents from market price |
When trading CFDs on futures precious metals, 1 standard contract of Gold equals 100 ounces, and 1 standard contract of Silver equals 5000 ounces. Take a look at the table below:
| Name/ Symbol | Contract Type | Contract Size |
|---|---|---|
| Gold/ GC | Standard Contract (1.0 Lot) Mini Contract (0.1 Lot) Micro Contract (0.01 Lot) | 100 Ounces of Gold 10 Ounces of Gold 1 Ounce of Gold |
| Silver/ SI | Standard Contract (1.0 Lot) Mini Contract (0.1 Lot) Micro Contract (0.01 Lot) | 5000 Ounces of Silver 500 Ounces of Silver 50 Ounces of Silver |
When trading CFDs on futures contracts for gold and silver, a fixed amount will be held as margin for each contract regardless to the account leverage as follows:
Required Margin per Contract Size:
| Required Margin per Standard | Required Margin per Mini | Required Margin per Micro |
|---|---|---|
| $1000 Fixed Margin | $100 Fixed Margin | $10 Fixed Margin |
* The held margin for a hedged position is the same for one open position of the same volume (for example, the held margin for 1 standard lot hedged position of CFDs Future Silver contract is $1000).
Making profits in trading is all about expectations and speculations for prices. The main concept is to buy a product hoping to sell it on a higher price or vice versa, so that the difference is your profits. Sometimes the market may go against your trades, thus the result would be losses.
As gold and silver contracts prices are denominated in USD, the profits/ losses are directly calculated in USD according to the simple equation below:
Profit/ Loss = (Bid Price – Ask Price) X Contract Size X Number of Lots
Example:
You placed a sell order in the market on Gold of 2 mini lots volume at price 1981.04. In few days, the market price goes up against you so you decide to close your order at price 1981.22.
Your losses will be as follows:
Profit/ Loss = (Bid Price – Ask Price) X Contract Size X Number of Lots
Profit/ Loss = (1981.04 – 1981.22) X 100 Oz X 0.2 Lots
= – 3.6 USD
* DorsiaFX”DorsiaFX” may in its soul and absolute discretion, at any time, without any prior notice change its commissions, fees, spreads, margin requirements and leverages, or close any account.