Spot Metal CFDs

Precious metals are very popular in the trading world, thanks to their safe haven reputation. Political and economic events influence prices, which cause fluctuations and uncertainty, pushing traders towards more traditionally stable financial assets like gold and silver.

These popular precious metals offer two major advantages: trading opportunities, regardless of the overall state of the market, and safety from inflation.

Why trade Spot Metal CFDs?

CFDs provide easy and fast access to the financial markets, eliminating the need to own the particular asset that you’re trading. In the case of Spot Metals, FXTM offers you the opportunity to speculate on the price movements of gold and silver against the three most traded currencies in the world; USD, EUR and GBP.

Lot Sizes

Choosing the lot size which suits you best as a trader means you have full control of your trading activity. Whether you wish to trade micro lots, mini lots or standard lots, we offer you the freedom to decide.

Example: Buy 1 lot XAU/USD

Deposit: $10,000

Open Price: 1284.28

Close Price: 1285.39

Notional Value ($) = Volume * Contract Size * Open Price = 1 * 100 * 1284.28 = $128,428

Profit: (Close Price - Open Price) * Volume * Contract Size = (1285.39 - 1284.28) * 1 * 100 = $111

Costs

Swap: Volume * Swap Rate * Pip Value * Number of nights = 1 * -13.5 * 1 * 1 = -$13.50

Commission: (Volume * Contract Size * Open Price) / 1,000,000 * Commission * 2 = (1 * 100 * 1284.28) / 1,000,000 * -20 * 2 = -$5.14

Cumulative Costs = Swap + Commission = -$13.50 - $5.14 = -$18.64

Cumulative Costs (%) = (Cumulative Costs / Notional Value) * 100 = (18.64 / 128,428) * 100 = 0.0145%

Cumulative Effect of Costs on Return (without fees) = (Profit / Deposit) * 100 = (111 / 10,000) * 100 = 1.11%

Cumulative Effect of Costs on Return (with fees) = (Profit - Cumulative Costs / Deposit) * 100 = (111 - 13.50 - 5.14 / 10,000 ) * 100 = 0.92%

Reduction of profit = 1.11% - 0.92% = 0.19%

Example: Buy 1 lot XAU/USD

Deposit: $10,000

Open Price: 1284.28

Close Price: 1283.24

Notional Value ($) = Volume * Contract Size * Open Price = 1 * 100 * 1284.28 = $128,428

Profit: (Close Price - Open Price) * Volume * Contract Size = (1283.24 - 1284.28) * 1 * 100 = -$104

Costs

Swap: Volume * Swap Rate * Pip Value * Number of nights = 1 * -13.5 * 1 * 1 = -$13.50

Commission: (Volume * Contract Size * Open Price) / 1,000,000 * Commission * 2 = (1 * 100 * 1284.28) / 1,000,000 * -20 * 2 = -$5.14

Cumulative Costs = Swap + Commission = -$13.5 - $5.14 = -$18.64

Cumulative Costs (%) = (Cumulative Costs / Notional Value) * 100 = (18.64 / 128,428) * 100 = 0.0145%

Cumulative Effect of Costs on Return (without fees) = (Profit / Deposit) * 100 = (-104 / 10,000) * 100 = -1.04%

Cumulative Effect of Costs on Return (with fees) = (Profit - Cumulative Costs / Deposit) * 100 = (-104 - 13.50 - 5.14 / 10,000 ) * 100 = -1.23%

Reduction of profit = 1.23% - 1.04% = 0.19%

*For FXTM Invest, the Strategy Profit Share represents a percentage of the profits that will be awarded to the Strategy Manager for his/her positive performance. Example: If the above example refers to a profitable trade in FXTM Invest, and the Strategy Manager sets a performance fee of 20%, then the Client’s net profit would amount to: (Net Profit) - (Net Profit * 20% Manager fee) = (111 - 18.64) - (92.36 * 20%) = $73.89.

**Such estimations are based on assumptions and may deviate from costs and charges that will actually be incurred. Swaps and commissions may be subject to change. For more information please refer to our contract specifications and commissions pages. Transaction costs and fees incurred in currencies other than the currency of the account are converted on a real-time basis in MetaTrader, at no additional cost to the client.

Leverage

Leverage is fixed based on the trading instrument and limited with 1:20 maximum.

As with any leveraged products, there is a possibility for both increased losses and profits.

Spreads

With FXTM, you enjoy competitive spreads starting from 0.3 on the ECN accounts and from 5.5 on the Standard Accounts.

Trading Hours

Trade online with FXTM regardless of the time of day. The forex market does not sleep during the week, which means that you have 24/5 access to our trading services. For any questions or assistance, our customer support team will be glad to help.

For a more detailed look at the Spot Metal specifications with FXTM, please see our Contract Specifications page.

To learn more about trading in the financial markets, lot sizes and spreads, visit our Short Forex Trading Videos section.