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Precious Metals

Diversify your portfolio for your trading.

 

Precious Metals are tradable commodities with high economic value and are considered to be rare. These metals are often recognised as safe investments during times of uncertainty and turmoil, providing an alternative for investing in other financial instruments. Gold and silver are a few of the most recognised commodities with high investment value, due to its rarity and involvement in the industrial process.

 

Precious Metals Contract Specifications Details

Spread

The average spread for Gold and Silver are as listed:

Gold and Silver Average Spread
Silver(XAGUSD) 0.03
Gold(XAUUSD) 0.38

*The above spreads are applicable under normal trading conditions.

 

Trading Hours

The Precious Metals market is open 23 hours a day on weekdays and is closed over the weekend. You will not be able to place any trades, stops or limits when the market is closed.

 
Server Time (GMT+1): Open from Sunday 23:00 | Close on Friday 23:00
* Our Server Time is currently set to GMT+1 due to Europe Daylight Savings changes.
 
 

Lot Size Specification

  • One lot of Gold: 100 ounces
  • One lot of Silver: 5,000 ounces
  • Minimum required lot is 1 Micro lot, 0.01 lot.
 

Order Size

Transactions above the minimum size can be in fractions of a contract.

  • The minimum size: 0.01 of one contract, the equivalent of 1 ounce of gold, 50 ounce of silver.
  • The maximum size: 50 lots depending on market availability but this may be subjected to slippage.
 

Precious Metals Pricing

Prices for gold and silver are quoted in USD. If you are trading 1 lot of gold, one cent movement is equivalent to USD 1. Please see examples:

  • Gold: Opening price is 1700.10 and the price moves up to 1700.11. The profit value is USD 1.
  • Silver: Opening price is 34.70 and the price moves up to 34.71. The profit value is USD 50.

Leverage

Leverage allows you to hold a larger position than the initial cash deposit. Your initial outlay is supplemented to increase the value of your underlying investment. The higher the leverage, the larger the position the trader can execute for the same amount of initial deposit.

For example, a client using 100:1 leverage could hold a position in the forex market of $100,000 with a margin of $1,000. For a 200:1 leverage, the client would need a $500 margin to hold the same position.

Leverage increases the possibility of potential in high return when the market moves in their favour. However, please note that leverage will act against you when the market moves in the opposite direction to your prediction.

 

Leverage Levels

Different leverage levels apply to different account types.

 

Margin Requirement

When an investor opens an account with a broker, an initial deposit is required in order to open a position in the market. The required cash deposit will act as a deposit to cover any credit risk. Depending on the agreement, the investor could be able to leverage up to a certain limit.

 

The margin requirement for a metal trade is calculated by using the following formula:


Margin = (Lot Size * Contract Size * Opening Price) / Leverage
 

Examples below based on a Standard /Classic account 1:100.

Forex

Margin requirement for one standard contract position in EUR/USD at 1.2500 is calculated as follows:

Margin = (1 * 100,000 * $1.2500) / (100) = $1250.00

Spot Gold

Margin requirement of one standard contract position in Gold at 1579.01 is calculated as follows:

Margin = (1 * 100 * $1579.01) / (100) = $1579.01

Spot Silver

Margin requirement for one standard contract position in Silver at 28.70 is calculated as follows:

Margin = (1 * 5000 * $28.70) / (100) = $1435.00

Note: Interest is not required to be paid on the borrowed amount, but if the investor decides to hold his position overnight, interest will be charged as the rolled over rates on the total positions held.

Margin Call

Margin Call is a level set by a brokerage that defines the minimum amount of money required to trade in the market. When your account falls below the margin call level, you will need to make an additional deposit to maintain your positions. Alternatively, you can close some of your positions to reduce your required margin. At Blackwell Global, Margin Call is set at 120%.

 

Stop Out Level

In the event you are unable to maintain sufficient funds in your account after hitting Margin Call, and if your account value depreciates to the Stop Out level, your positions will be closed automatically to prevent further loss to your capital. At Blackwell Global, Stop Out level is set at 80%.

Swaps

Often referred to as Rollover Interest, swaps are charged when holding onto a position overnight due to the difference in interest rates between the base metal and the quote currency.

Blackwell Global deals metal trading on a "spot" basis. All trades are settled in two business days from inception as per market convention. Swaps are automatically calculated and settled at 21:59 GMT (Server Time 22:59) on a daily basis and Blackwell Global does not arrange for physical delivery.

Any open positions held from Wednesday to Thursday on a trade date basis will be charged three times the value. The extra payment is to cover the interest that would normally have been charged on Saturday and Sunday when the market is closed.

 

Precious Metals rollover interest table

Pair Long Rate (Pips) Short Rate (Pips)
Silver(XAGUSD) -0.08100 -0.02900
Gold(XAUUSD) -0.48000 -0.33100