Before find a gold investment platform, here are some common questions Spot gold trading you need.

Spot gold trading common questions

Q1:What is the exchange rate here?
A:Exchange rate is real-time international exchange rate.

Q2:What is "Contract Unit"?
A: "Contract Unit" is the amount of quantity you can buy or sell for trading one lot of Loco London Gold or Loco London Silver. The contract size of one lot of Loco London Gold is 100 ounces while the contract unit of one lot of Loco London Silver is 5000 ounces.

Q3:How much margin do you require for trading one lot?
A: Margin refers to the certain amount of capital required for trading of LLG/LLS as a certificate of holding the orders .
The margin requirement for Loco London Gold: US$ 1,000 per lot
The margin requirement for Loco London Silver: US$ 2,000 per lot
The margin requirement for Loco London Gold: US$ 2,000 per lot
The margin requirement for Loco London Silver: US$ 4,000 per lot afer the close of trading in GEG
platform, in order to handle the fluctuation after the open of trading.

Q4:What is Stop-Profit?
A: Stop-profit, or take-profit/limit, refers to the price that an order must be closed out to realize an investor's profit gained with respect to a trade position. When that market price reaches a stop-profit price, the trade system will automatically close the position. By limiting any further gains, the system is minimizing any possible reversal price movements which may reduce profits for the investor.The stop-profit of a buy position must be placed above the target price, whereas a stop-profit of a sell position must be placed below the target price. The criterion for placing a stop-profit price for LLG/LLS in GEG platform is at least US$2 more or less than the current price. The criterion for placing a stop-profit for LLG/LLS in MT4 platform is at least US$3 more or less than the current price.

Q5:What is Stop-loss?
A: Stop-loss refers to the price that an order must be closed out to minimize an investor's loss with respect to a trade position. When the market price reaches a stop-loss price, the trade system will automatically close the position, limiting any further losses to the investor.The stop-loss of a buy position must be placed below the target price, whereas a stop-loss of a sell position must be placed above the target price. The criterion for placing a stop-loss for LLG/LLS is at least US$2 more or less than the current price in GEG platform. The criterion for placing a stop-loss for LLG/LLS is at least US$3 more or less than the current price in MT4 platform.Gold Jinyu.

Q6:What will the minimum investment be?
A: Minimum contract size:0.5 lot. Initial margin: US$100 per lot. Please contact the customer service for details.

Q7:How to calculate the interest?
A: Interest=(position price * contract unit * interest rate*days)/360. Please note that it should be three days interests if overnight on Friday. The buy rate now is 1.75% and the sell rate is 1.25%, however, the rates are subject to the latest announcement.

Q8:How to calculate the profit/loss?
A: Net Profit/Loss=(Bid Price-Ask Price)*Contract size-Interest-Commission.

Q9:What is a lock position?
A: It refers to the case that a client holds the long position and short position of the same product at the same time in order to enforce risk control policies and improve the risk-resisting ability. If the ratio of prepayment of an account is close to or lower than 20%, the system will lock the position automatically. All investors are reminded to pay attention to your account. If the ratio is approaching to 50% and dropping over the time, please be suggested:
1. to close out all positions or lock the position, in order to control the losses.
2. to meet margin calls in order to make the account back to a safe level.

Q10:What is the differences between Complete-lock position and part-lock position?
A: Complete-lock position,for instance in Gold Jinyu, refers in the case that client holds the same lots of long position and short position of the same product at the same time. however, if client holds different size of lots such as0.5 lot for long position and 1 lot for short position, 0.5 left after offset, it will be called part-lock position. There are two ways to lock the position: manual by client or enforced by system. 1/20 of initial margin is required for a locked position.