Gold & forex

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Gold & Forex

Gold & Forex

Forex is the largest and most liquid market in the world today. the velocity of money is almost equivalent to the value of $ 4.0 trillion, three times higher than the average combined stock and bond markets. The forex market operates 24 hours and transactions take place through the global banking network, ranging from Asia, Europe and America. Not through exchange forex transactions or transactions are outside the market (Over The Counter). Market participants can buy and sell currencies to take advantage of fluctuations in the price movement.

The velocity of money in commodity markets is quite high due to commodity transactions is one of the most popular instruments in the eyes of most of the global investment managers.

Commodities can be interpreted as something of a physical substance. Commodities divided in two, the first is a general commodity which is the result of mining such as gold, silver, oil and other commodities. This commodity is a limited natural resource and a high cost to obtain it. Second, is a commodity that is produced from agricultural production such as sugar, rice, cocoa, coffee and others.

Commodities easier to understand because a lot depends on the conditions of supply and demand fundamentals. Volatility of commodity prices is smaller than stocks and bonds, thus providing an efficient portfolio diversification option for market participants. What makes commodities more attractive and more risky than stocks in the transaction is the amount of leverage or leverage. In fact, the risk of trading in commodity markets will not be more than the risk that you set yourself.

Gold (XAU/USD)

Is physical gold products based on Loco London market, which traded with the alternative trading system (SPA), with a contract size of 100 troy ounces or 3110.35 grams (3.1 lbs), and does not require physical delivery.

There are no costs for transportation and storage
Standard contract; 100 troy ounces
Spread a very low
High liquidity, with the speed of execution of transactions in seconds.
Short selling in the market is bearish
The market is open 24 hours on weekdays
The margins are very low, so that the ROI can be increased significantly
Made online at Monex Trader platform.

Illustrative Calculation
The Contract Value: 100 troy ounces / lot
You expect gold to rise against the USD and buy the XAU / USD at the price of $ 1.200 as much as 2 lots in the morning. In the afternoon, the price of gold rose and you liquidate a position at the price $ 1.215.
= (Selling price - purchase price) x contract value x number of lots
= (1.215 to 1.200) x 100 x 2 = $ 3,000 *

* This calculation is illustrative and does not include commissions and interest, the opposite can occur if the client takes the position that is not in line with price movements.

Foreign Exchange

Foreign Exchange (Foreign Exchange) is the currency of other countries that are generally traded worldwide. The transaction is carried out by many parties; countries, institutions and individuals, either for the purpose of foreign exchange reserves, international trade, hedging or also to take advantage of the price difference. Monex provides the facility of foreign currency trading through alternative trading systems (SPA) on the Exchange, which allows all parties to be involved and engaged in transactions with far less capital and liquidity levels are very high.

You can trade currencies in the world (major currency) and currency cross (cross rate) online following the major financial markets of the world (Tokyo, London and New York), for almost 24 hours on weekdays.

Market participants and the largest volumes of transactions around the world.
Very high liquidity, transaction done in a matter of seconds.
The market is open for almost 24 hours every working day except Saturday and Sunday.
Thin difference between the selling price and the purchase price (tight spreads).
Sell ​​currencies can be done without having to buy first previous (short sell).
Storage position of buying and selling is not timed.
Capital transactions only 1% of the contract value
Online trading with Monex Trader platform.

Illustrative Calculation
The Contract Value: 100,000 currency, - / Lot
Profit / Loss:
= (Selling price - purchase price) x contract value x number of lots
You estimate the euro will rise against the USD and in the morning you buy EUR / USD at 1.40000 as much as 2 lots. In the afternoon, the euro strengthened and you liquidate a position at 1.41000 prices.
= (1.41000 - 1.40000) x 100,000 x 2 lots = $ 2,000 *