METALS

Diversify your trading portfolio with gold and silver at FX88

 

Diversify your trading portfolio

At FX88 in addition to trading currencies you can also trade the metals Gold (XAU) and Silver (XAG). These metals are commonly traded and are often used as a hedge during economic uncertainty. Therefore they are often referred to as “safe havens”.  By adding Gold and Silver to your trading portfolio you are diversifying your strategy and increasing your opportunities. Gold and Silver are traded against the US dollar in a similar way to the currency pairs on the platform, except that spot metals trade 23 hours a day.

Spreads

Typical spreads under normal forex trading conditions

Pair Premium Target Spread ECN Target Spread** Leverage
XAG/USD 0.018 0.013 10
XAU/USD 0.18 0.13 20

*Slippage may occur during volatile market conditions

**For ECN accounts, a commission charge of US$7 / €6 / PLN25 per lot applies

#Minimum level for placing Stop Loss and Take Profit orders from a current market price.

At FX88, we offer different leverage based on our clients’ preference and trading ability.
Please refer to the available leverages based on the account types.

* Leverage can significantly increase your losses as well as your gains. It is important for traders to understand that they may lose more than their original invested amount. At FX88, the default maximum leverage is set to 1:50. Clients may request a higher leverage should the product be deemed appropriate for them.

Margin Requirement is an initial deposit required to maintain open trading positions. A portion of your trading account funds will be set aside as a margin deposit and this will be dependent on your leverage setting.
To help you understand how margin requirement in metal trading works, we have prepared two examples below:

Example 1:

Margin requirement for one standard contract position in XAU/USD at 1588.08 with a leverage of 1:100 is calculated as follows:
Margin = (1 * 100 * $1588.08) / (100) = $1588.08

Example 2

Margin requirement for one standard contract position in XAG/USD at 29.88 with a leverage of 1:100 is calculated as follows:
Margin = (1 * 5000 * $29.88) / (100) = $1494.00

It is important for traders to understand the meaning of Margin Call before they trade. Margin Call is a measure set by brokers to alert traders prior to their account funds falling below the Margin Requirement. This prevents liquidation of open positions due to insufficient Margin Requirement. At FX88, Margin Call is set at 80%, therefore, if your Equity (Balance – Open Positions Profit/Loss) falls below 80% of the margin required to maintain your positions, a notification within MT4 will alert you to make an additional deposit to maintain your open positions.

After Margin Call, you should understand the meaning of Stop Out Levels. If you are unable to maintain sufficient funds in your account after hitting the Margin Call level, and your account funds depreciates to the Stop Out level, your positions will be closed automatically to prevent further losses which might put you into negative. At FX88, Stop Out level is set at 50%.

The metals market is open 23 hours day, 5 days a week.

Server Time (GMT+2): Open from Monday 01:01 to Friday 23:59

Our Server Time is set to GMT+2

Swaps

The term Swaps refers to the rollover interest (which is earned or paid) when you hold a position or positions overnight. The interest for positions held over the weekend will occur on Wednesday. Therefore, the interest applied on Wednesday will be for three days of rollover interest.

 

Pair Long Short
XAU/USD -10.918 3.921
XAG/USD -1.462 0.404
Risk warning: Trading leveraged products such as forex and CFDs carries a high level of risk and may not be suitable for all investors. There is a possibility to lose all your initial capital. Please ensure that you fully understand our Risk Disclosure Policy.