Range of Markets
Financial CFD Markets Explained
We have collated a detailed description of all our financial CFD markets, providing you with detailed market and trade information plus descriptions to explain more about each particular instrument.
Gold, Feb
| NTR: | Contracts | % * | |||
|---|---|---|---|---|---|
| .50 | ||||
| 2.50 | ||||
| 5.00 | ||||
| 25.00 |
| Limited Risk NTR: | Contracts | % * | |||
|---|---|---|---|---|---|
| 5.00 | ||||
| 25.00 |
| Spread Premium: | Contracts | Multiplier | |||
|---|---|---|---|---|---|
| 1 | ||||
| 1.5 | ||||
| 3 | ||||
| 20 |
*When placing a new trade the NTR Multiplier is calculated from the mid-point of the current price. E.g. if a share is currently trading at 199.7 – 200.3 with an NTR multiplier of ‘10% of the current price’ then the NTR Multiplier at that time will be 20 (10% of 200). Once you have an open position in a market, if that position is a buy it will be marked to the current bid price and therefore the NTR Multiplier will be calculated from the bid price. If the position is a sell it will be marked to the offer price and therefore the NTR Multiplier will be calculated from the offer price. Please note this means that NTR Multipliers will vary as the price and bid-offer spread of the market moves.
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Market Description
Gold has always been a symbol of wealth due to its look and rarity and is by far the most popular of the precious metals when it comes to CFD trading.
Its price is normally quoted in US dollars per ounce. Gold is renowned for holding its value and is regarded as a safe haven for investors to turn towards to diversify their portfolio and offer protection during times of economic uncertainty.
To highlight this fact, consider that the price of gold has soared from $258.2 an ounce in July 1999 to highs of above $1,400 an ounce in November 2010.
When CFD trading on gold you trade per 10 cent movement, therefore the price movement can be very volatile with up to 300 point movements per day, or more, quite possible.
When placing a CFD with Spreadex on the future price of gold, you can trade on either a Daily Future market or Futures markets with prices quoted based on expiry at a given future date. For example, Spreadex may quote Gold, Daily Future at 1399.5-1400.2.
If you wish to trade on the price of gold and you believe the value of gold will rise, you would buy on the price. If you believe it will decrease, you would sell on the price. If your trade is successful you will win the number of points difference multiplied by your stake. If your trade is unsuccessful you will lose the number of points difference multiplied by your stake.
When CFD trading on gold, there are many key influences to monitor including the supply of gold to the market, and the demand, especially demand by countries buying up gold reserves. As gold’s price is quoted in US dollars, any fluctuations in the value of the American currency can also influence the price of gold.
