Gold & Metals Trading

How and Why Trade Gold

The Gold trading market is a mature and deep market, with excellent trading liquidity offering traders the opportunity to profit from both the long and short sides, meaning that there is always profit to be made irrespective of price movement.

Gold rallied between 2001 and 2011 from approximately $255 to almost $1,900. It has now corrected for almost 4 years, reaching a low of approximately $1,060 before rallying from this level in 2016. This rally was accompanied with increased volatility in equity markets.

Note: Visit our dedicated page for real life foreign exchange trading examples.


And Why with NSFX?

NSFX Ltd. recognises that trading Gold is an integral part of many traders’ trading strategy. Consequently, NSFX provides clients with the best possible trading conditions to profit from Gold price movements, including:

  • Fast execution and the tightest spreads
  • Multiple platform trading capabilities (Web, desktop, mobile)
  • Balanced leverage and exposure, 1:100, 1% of transaction value
  • Trading flexibility – fixed spread or variable ECN spread

Trading Gold at NSFX

The following table outlines Gold trading parameters at NSFX.

For Silver trading parameters click here

*Metals Trading Parameters at NSFX


Instrument
Spread *ECN Spread Leverage Contract Size Min. Trade ECN Min. Trade Roll Sell Roll Buy
GOLD: XAUUSD 60 50 1:100 100 0.1 Lots 0.1 Lots -2.6000 -0.0125
SILVER: XAGUSD 5 4 1:100 1000 0.1 Lots 0.1 Lots -1.2375 0.7500

*These are averages of fluctuating spreads.

Gold Trading Hours

Gold is traded from Sunday at 23:00 GMT to Friday at 20:00 GMT. It is important to note that there is a daily break in Gold trading services between 21:00 GMT and 22:00 GMT, Trade resumes at 22:00 GMT. During the break, no trading, or placing of orders is possible.

Gold Margin Requirements

In a standard 1:100 leveraged trade, 1% of the transaction value must be set aside to cover the margin requirement. Consequently, for every $1 in the account, traders can control $100 in the market.

Gold CFD Rollover (Swaps)

In both commodities and foreign exchange markets a rollover/swap, is the interest that is added or deducted in order to secure an open position overnight. Rollover/swap rates are calculated as the overnight interest rate differential between the two currencies on which the position is held comes due, depending on the position type (Buy (Long) / Sell (Short).

Note: All rollover fees for all CFDs including: ‘Gold’,’Crude-Oil’,’Silver’ and ‘Indices’ will be charged a 1% flat fee.

It is important to consider the following aspects of rollover/swap charges:

  • Rollover/Swaps are charged on client’s forex accounts only on the positions kept open into the next forex trading day
  • The rollover process begins at the end of the US market trading session
  • The Gold rates below are calculated and based on USD accounts per 1 Standard Lot
  • Rollover/swaps are calculated and applied on every trading night. On Wednesday night rollover/swaps are charged at a triple rate (see explanation below)

Precious Metal Rollover/Swaps – Additional Information

At NSFX, rollovers are only dealt with on a ‘spot’ basis. This means that all positions are settled two business days from inception, as per market rules.

NSFX will not facilitate actual physical delivery of either precious metals/currency. As a result, all positions that are open from 23:59:45GMT to 23:59:59GMT (Server time) are rolled over to a new value date. These trades are then charged or credited the relevant rollover as shown in the table above.

Note: When an open trade is rolled over from Wednesday to Thursday on trade, the new value date shifts to Monday of the next week. As a result, the rollover charge on Wednesday evenings will always be three times the value shown in the above table. In general, it should be understood that in the case of factoring in weekends and holidays, the rollover/swap is multiplied by the number of days of the rollover.

*** This information does not constitute an offer or solicitation and should not be relied on as such to enter into a transaction or for any investment decision. This information is provided for information purposes only. Any opinions expressed in this document represent the views of NSFX at the time of preparation. They are thus subject to change without notice. NSFX believes that the information contained herein is accurate as at the date of publication. However, no warranty of accuracy is given by NSFX and no liability in respect of any errors or omissions, including any third party liability, are accepted by NSFX or any director, officer or employee.