Bullion/Precious Metals

 

BL Global Markets Limited also provides bullion margin trading. Use of the term 'bullion' is restricted to 'gold'and 'silver', only. Bullion is a popular commodity for investors, for both short term and long term investments, due to its specific characteristics. Gold and silver are traditional hedge assets for hedging against inflation and other uncertainties in capital markets. Trends in gold and silver are not usually aligned with trends in stocks and bonds. Gold and silver are often considered as an instrument to hedge against economic uncertainties in capital markets.

 

Trading time of Bullion - Gold (XAUUSD) and Silver (XAGUSD)

 

Bullion trading opens at 23.00 GMT on Sundays. A daily break occurs at 22.00 GMT. Resumption of trading begins at 23.00 GMT. During the daily break, market orders cannot be established, and limits/stops cannot be established or modified (daylight saving hours applied)

 

Overnight Interest Rate

 

The gold/silver overnight interest rate will be calculated on the same basis as Forex trading.

 

 

Example: Gold Dealing

 

 CFDs
Market price$1257.50/$1258.00
Buy$1258.00
Contract Size100 Ounce per Lot
Margin RequiredUSD 1258 (1:100)
Close positionMarket price is $1263.00 (5 dollars increased)
Profit/LossProfit = USD 500.00
$1263.00 - $1258.00 = $5.00 per ounce
100 ounce on hand
100 * $5.00 = $500.00
AssumptionMarket price is $1253(5 dollars is decreased), loss will be $500.00.

 

Example: Silver Dealing

 

 CFDs
Market price$21.36/$21.38
Buy$21.38
Contract Size5000 Ounce per Lot
Margin Required$1069 (1:100)
Close positionMarket price is $21.40 (0.02 dollars increased)
Profit/LossProfit = USD 100.00
$21.40 - $21.38 = $0.02 per ounce
5000 ounce on hand
5000 * $0.02 = $100.00
AssumptionMarket price is $21.36(0.02 dollars is decreased), loss will be $100.00.