COMMODITY TRADING EXAMPLES
Let’s say spot gold is trading at a selling price of $1,200.00 and a buying price of $1,200.30.
You expect the gold price to rise, so you buy one contract of gold (each contract = 100 ounces).
You bought at $1,200.30, the price went up to 1210.00/1210.30 and you wish to take your profits. You sell your position by closing it at the selling price of $1,210.00.
Your total profit will be ($1210.00-$1200.30) * 100 = $9.70 * 100 ounces = $970
You bought at $1,200.30, the price went down to 1190.00/1190.30 and you wish to limit your losses. You sell your position by closing it at the selling price of $1,190.00.
Your total loss will be ($1190.00-$1200.30) * 100 = $10.30 * 100 ounces = $1,030
Want to start trading?
You can trade commodities either as a Contract for Difference (CFD) or a spread bet with ADSS. When deciding how to invest, think about your trading knowledge, the returns you want to see and your appetite for risk.