Link Forex offers advanced FX, Precious Metal and CFD trading platform to global investors
What is a Precious Metal?
Gold and silver are known to be one of the most widely used global asset investment instruments. Unlike the traditional paper gold trading market, LINK FOREX through the OTC market, the use of online trading platform to provide customers with fast and easy to execute instructions. You can trade gold and silver at 100x leverage.
Precious Metals Trading Case
Take gold as an example of how precious metals can be traded.
First of all, we need to understand a standard hand in gold trading.
1 Standard Hand Gold Price Fluctuation 1 basis point Value $ 1.
If you do not know a standard hand in gold trading, check out our market data sheet.
The price of gold is fluctuating by 0.1. Since the minimum fluctuation of gold is 0.1, we will be the gold exchange rate fluctuations of 0.1 as a base point fluctuations.
In the LINK FOREX gold trading, you can trade 0.1 hand.
0.1 hand means that the exchange rate fluctuates by a base point value of 0.1 US dollars or 10 cents.
If you do more gold, with gold prices rising 1 basis point per 0.1 standard hand you will get $ 0.1 profit.
If you short the gold, you will get a profit of $ 0.1 per 0.1 standard lot as the gold price falls 1 basis point.
If you are buying more than 0.1 lots of gold at $ 1200 and the price is up 5 basis points to $ 1200.5, you will earn 50 cents because 0.1x5 = $ 0.5 or 50 cents.
If you are shorting 0.1 lots of gold at $ 1200 and the price is down 50 basis points to $ 1195, you will earn $ 5 because 0.1x50 = $ 5.
In other words, if you move in the opposite direction, you will incur a loss of the relevant quantity.