At City Index you can now trade metals futures CFDs, including Gold and Silver, meaning you can react to changes in metal prices instantly and from wherever you are.
We run our metals markets 23 hours a day to give you access to live prices and help you to maximise your trading potential. We offer spreads from 3 points for silver futures CFD and from 0.8 points for gold futures CFDs.
Let's say our gold CFD price is 1250.1/1250.5 (sell price/buy price).
You think that gold prices are currently undervalued at these levels and decide to buy (go long) 20 CFDs at 1250.5 (buy price).
You were right: Over the coming days, the price of gold surges on increasing demand for the precious metal. When prices reach 1280.5, you decide to cash in your profits. We are now quoting a gold CFD price of 1280.5/1280.9. To close your trade, you now sell 20 CFDs at 1280.5.
Result: You bought at 1250.5 and sold at 1280.5, representing a 30-point movement in your favour, which at a trade size of 20 CFDs, nets you a profit of $600 (1280.5 – 1250.5 x 20 CFDs) (note gold CFD bet per is 1.0).
Alternative scenario: If, however, you were wrong and gold prices had fallen to 1220.5, you would net a $600 loss (1250.5 - 1220.5 x 20 CFDs).
You think gold prices are overvalued at these levels and decide to sell (go short) 20 CFDs at 1250.1 (sell price).
You were right: Over the coming days, some increased appetite for risk convinces investors to move money out of gold, causing gold prices to fall. When the prices reach 1220.1, you decide to cash in your profits. We are now quoting a gold CFD price of 1219.7/1220.1. To close your trade, you now buy back 20 CFDs at 1220.1.
Result: You sold at 1250.1 and bought back at 1220.1, representing a 30-point movement in your favour, which at a trade size of 20 CFDs, nets you a profit of $600 (1250.1 – 1220.1 x 20 CFDs) (note gold CFD bet per is 1.0).
Alternative scenario: If, however, you were wrong and prices had risen to 1280.1, you would net a $600 loss (1280.1 - 1250.1 x 20 CFDs).
Trading CFDs and FX on margin carries a high level of risk, that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
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