Investment experts have long recommended that the investment ratio of precious metals (including gold) in the portfolio of investors is about 10%-20%, which is a diversified investment strategy that should be adopted at all times. In today's environment where politics and economy are full of uncertainty, we have to invest in gold because gold has the following characteristics:
1、 Rare metal
Gold is a rare, non-renewable metal that is a symbol of wealth. Banknotes have been constantly updated for thousands of years, but they have maintained their own value for a long time and are not directly affected by the economic policies of individual countries. With the continuous exploitation of mankind, the reserves of gold are decreasing, and there is a big gap between supply and demand. The price and value law will determine the price of gold will rise continuously in the future.
2、 Hedging function
Gold is the most effective tool for asset preservation during wars and social unrest. The 21st century is a turbulent century, wars, terrorist attacks, nuclear crises, and so on. The Middle East is always an area that cannot be calmed. With the end of the Afghan war and the Iraq war, the world has entered a nuclear crisis. As the most advantageous hedging tool, gold has been sought after by the market.
3、 Value preservation and value-added function
Gold is the most effective umbrella against the depreciation of the dollar, and it also has a lot of room for value growth. Unlike banknotes, bonds, and portfolios of securities, it is possible that they will become worthless overnight, and gold has its intrinsic value, so it always has value.
The fluctuation of gold prices is not affected by other investment products and is relatively independent, even if only a small portion of gold in the portfolio can help reduce the overall risk.
As a commodity, copper has a high maturity, has both financial attributes and commodity attributes, and is closely related to the macroeconomic index. It is a trading commodity favored by domestic and foreign investors.
1、Trading system advantage
The market is open, fair and transparent, and the market system is sound, with no restrictions on price limits. Flexible contract design and low investment threshold, suitable for different customers' operating habits
2、Wide range of uses, mature market, high customer acceptance
The main reason for the fluctuation of copper price is more dependent on the relationship between supply and demand. The short-term impact of non-agricultural economic data is relatively small, and the fluctuation is relatively stable, which is suitable for trend trading.
3、The daily price fluctuation of copper is appropriate, and there are many short-term operation opportunities in the day.
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The EFS platform copper automatically closes the position on each natural month's change date. The customer will realize a floating profit/loss when the position is closed. The client will have to re-establish another long position (assuming the customer wishes to hold a long-term trading order) and then re-attach the stop loss and limit price to the new opening position. The change date is the third trading day of the last trading day of each contract month
2019 EFS copper product reversal
|Contract month||Expiry date|
* Our trading hours may be subject to change due to market holidays and US summer time adjustments. Please refer to our notice or contact our customer service team for the latest information.
The deadline for calculating the cost of financial products and the associated data is: 20:00 GMT per day for daylight saving time in the United States and 21:00 GMT per day for the US winter time. All contracts that operate before this deadline will be displayed in the current day's data. The contract that operates after this deadline is displayed on the next trading day. Please note: The closing time of our products is not affected by this.
Metal has no price limit
B.Profit and loss calculation
(selling price - purchase price) * contract face value * contract shares = profit and loss in US dollars *The above calculation process does not include commission fees.
Interest calculation: (1) Spot gold and spot silver contracts [(Opening price * contract face value * contract share * interest rate) / 360] * days = interest in US dollars Copper CFD: Metal CFDs have no interest charges. (2) Calculation of custodial fees: Custody fee rate* days* contract shares = custodial fees
Selling gold contracts
A spot gold contract (SPT_GLD) has a face value of 100 ounces (based on the value of the metal below), with a spread of 50 cents ($0.50), a minimum change of $0.05, and a margin requirement of $1000 per contract.
The customer believes that the valuation of gold is too high and will fall in the future. In response to this situation, the customer decided to sell gold.
The spot gold contract is quoted at 1340/1340.50, and the customer sells 2 spot gold contracts at 1340, which requires a total deposit of $2000. Customers are required to provide a minimum deposit of $1000 per trade.
The spot gold price fell to 1319.50/1320 and the client decided to close his short-term trade. He bought 2 lots of spot gold at a price of 1320, and the customer made a profit of $20 per contract in the (1340 -1320) trade.
If the face value of each contract is 100 ounces (the value of the metal below), we should use 100*$20. Therefore, the profit per contract in US dollars is: 100*$20=$2000, and the total profit is $4000 ($2000*2 contracts).
If the customer does not close the position within the day and continues to hold the position until the next trading day, we will implement an overnight interest adjustment.
Copper copper example
Selling copper copper contract
The copper coupon is quoted at 2.7275/2.7285, and a customer sells two standard lots at 2.7275, which requires at least $4,000, as the margin required for each standard lot is $2,000.
When the coppercopper copper fell to 2.6480/2.6490, the customer decided to close the hollow list and earn profits as follows
The profit per contract is 50,000 lbs/hand* (2.7275-2.6490) = $3,925. The total profit is $3,925 * 2 hands = $7,850.
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Forex and gold, silver, oil trading involves high risk and may not be suitable for all investors, a high degree of leverage can help you profit or loss. Before deciding to invest in foreign exchange, you should carefully consider your investment objectives, experience level, and the risk you can bear. You may suffer a loss of some or all funds. If you can not afford the loss, you should not invest money for this. You may sustain losses in excess of your margin of the deposit, and may be held responsibility. Therefore, you should carefully understand all the risks associated with foreign exchange trading. If any questions, you should seek advice from an independent financial adviser.
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