Spot Gold is easy to trade with us: all deals are commission-free and we quote very narrow spreads.
Opening the position
It is March and you expect the price of gold to fall. Our quote is 1122.1/1122.6 and you decide to sell 2 contracts at 1122.1 (one 100 oz contract equates to $100 per full point). There is no commission to pay on any of our Spot Metals.
Interest adjustments
As you have taken a short position, your account is debited to reflect interest adjustments. The interest on your position is calculated daily, by applying the relevant interest rate to the daily closing value of the position.
Closing the position
A week later, the price of gold has fallen and we are quoting 1085.1/1085.6. You decide to take your profit, buying 2 contracts at 1085.6. Your gross profit on the trade is calculated as follows:
Profit
| Closing level | 1085.6 |
| Opening level | 1122.1 |
| Difference | 36.5 |
Gross profit: 2 contracts x 100 oz x US$36.5/ oz = US$7,300.
To calculate the net result on the transaction you would also have to take into account the interest adjustments.