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Gold Spread Betting
A guide to gold spread betting:
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Prices are indicative only. Thousands more prices are available when you log in.
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Where Can I Spread Bet on Gold?
When using a Financial Spreads account clients can speculate on a wide variety of commodity markets. Markets include Gold as well as Silver, Brent Crude Oil, US Crude Oil, Natural Gas, Wheat, Sugar etc.
Where Can I Access Live Gold Prices?
When trading with FinancialSpreads clients can take a view on a range of more than 2,500 real-time spread betting prices including markets like Gold and a wide variety of other commodities, stock market indices, currencies and stocks prices.
Where Can I Get Live Gold Charts?
When trading with Financial Spreads you can use the live candlestick charts for Gold and more than 2,500 other financial spread betting markets.
As well as the various chart types, the charting package also has a range of advanced options:
- Automated alerts when the markets hit a pre-set level
- Back Testing and Optimisation tools
- A broad variety of time periods such as 3 minutes, 2 hours, 1 month etc.
- Technical indicators and chart overlays such as Moving Average, Parabolic SAR, Williams %R etc.
- Drawing options such as Fibonacci arcs, time zones and fans
Sample gold spread betting chart:
Tax-Free Gold Spread Betting
Financial spread betting, including gold spread betting, is currently tax-free in the UK. Note though, tax treatment depends on the individual circumstances of each client and may change in the future.
Where Can I Practice Spread Betting on the Gold Market?
FinancialSpreads offers a free Demo Account that allows investors to try out trading orders, try out new theories, practice spread betting and access the real time charts on markets including Gold.
The Financial Spreads Demo Account offers a large range of markets such as stock market indices, interest rates, commodity markets and FX pairs.
The Demo Account looks at more than spread trading, you are also able to try Contracts for Difference trading.
How to Spread Bet on Gold
As an example, let's suppose that you sign into the FinancialSpreads website and the platform is showing a quote of:
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Bid |
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Ask |
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| Gold Rolling Daily |
1665.6 |
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1666.0 |
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Here's a brief guide to how it works
| The Spread Betting Market: | Gold Rolling Daily |
| Spread: | $1,665.6 - $1,666.0 |
| This Means: | You can bet on the Gold Rolling Daily market moving:
 Above $1,666.0, or
 Below $1,665.6
This is a 'Rolling Daily' spread bet which means that there is no expiry date for this spread bet. If you decide not to close your trade and the session ends then your trade will automatically roll over to the next trading day.
If a trade does roll over then you will normally either have to pay or receive interest for overnight financing based upon whether you are speculating on the market to move lower or higher. For additional details also see Rolling Spread Bets. |
| Points (Units) Traded: | Spread trades on the Gold market are priced in £x per $0.1.
Where $0.1 is 10¢ of the commodity's price movement.
E.g. if Gold moves by $4.50 then you would win/lose 45 multiples of your stake. |
| Stake (Trade Size): | You work out how much you want to trade per $0.1, e.g. £2 per $0.1, £5 per $0.1, £10 per $0.1 etc. |
| Simplified Example: | For example, if you have a stake of £3 per $0.1 and Gold moves $3.40, you would lose/win £3 per $0.1 x $3.40 = £102. |
Spread Trading Example - Buying Gold
Online spread betting on the commodity market to move up in value
| You Decide to Go Long or Short: |
Gold to push:
Above $1,666.0? or
Below $1,665.6?
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| Let’s Say You Buy: |
Above $1,666.0
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| You Select How Much to Risk, Let's Say You Opt For: | £2 per $0.1 |
| So Now What Happens? |
- You make £2 for every $0.1 Gold goes higher than $1,666.0
- You lose £2 for each $0.1 Gold falls lower than $1,666.0
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| When Going Long of a Market Your Profits (or Losses) = | (Closing Price - Opening Price) x stake |
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| Example 1 |
| Gold goes higher and the spread trading market is revised to $1,672.4 - $1,672.8, therefore you'd see this on Financial Spreads: |
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1672.4 |
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1672.8 |
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| Lock in Your Profit? | You can opt to keep your spread bet open or close it and lock in your profit. For this example, you opt to close your position and sell the market at $1,672.4. |
| Your Profits (or Losses) = | (Closing Price - Opening Price) x stake |
| ($1,672.4 - $1,666.0) x £2 per $0.1 |
| $6.4 x £2 per $0.1 |
| Your Profits (or Losses) = | £128 profit |
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| Example 2 |
| Gold slips and the market is moved to $1,658.7 - $1,659.1, so you'd see this on Financial Spreads: |
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1658.7 |
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1659.1 |
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| Limit the Loss? | You could opt to keep your trade open or close it to limit your loss. In this case you choose to close your bet and sell at $1,658.7. |
| Your Profits (or Losses) = | (Closing Price - Opening Price) x stake |
| ($1,658.7 - $1,666.0) x £2 per $0.1 |
| -$7.3 x £2 per $0.1 |
| Your Profits (or Losses) = | -£146 loss |
Worked Spread Betting Example - Taking a Bearish View of Gold
Spread betting on the commodity market to fall in value
| You Select Whether to Go Long or Short: |
Gold to move:
Above $1,666.0? or
Below $1,665.6?
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| Let's Assume You Decide to Go Short: |
Below $1,665.6 |
| You Choose How Much to Risk, Let's Say You Choose: | £1 per $0.1 |
| What Next? |
- You lose £1 for each $0.1 Gold increases above $1,665.6
- You make £1 for each $0.1 Gold pushes lower than $1,665.6
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| When You Sell a Market Your Profits (or Losses) = | (Opening Price - Closing Price) x stake |
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| Example 3 |
| Gold drops and the financial spread betting market changes to $1,655.6 - $1,656.0. I.e. |
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1655.6 |
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1656.0 |
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| Time to Lock in a Profit? | You may choose to leave your bet open or close it, i.e. close your trade to lock in your profit. For this example, you opt to settle your trade and buy at $1,656.0. |
| Your Profits (or Losses) = | (Opening Price - Closing Price) x stake |
| ($1,665.6 - $1,656.0) x £1 per $0.1 |
| $9.6 x £1 per $0.1 |
| Your Profits (or Losses) = | £96 profit |
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| Example 4 |
| Gold climbs and the spread betting market is revised and set at $1,676.2 - $1,676.6. Therefore Financial Spreads would show: |
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1676.2 |
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1676.6 |
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| Close and Restrict the Loss? | At this point, you could opt to leave your spread bet open or close it, i.e. close your trade to limit your loss. In this example you decide to close your trade and buy the market at $1,676.6. |
| Your Profits (or Losses) = | (Opening Price - Closing Price) x stake |
| ($1,665.6 - $1,676.6) x £1 per $0.1 |
| -$11.0 x £1 per $0.1 |
| Your Profits (or Losses) = | -£110 loss |
- Gold notes: spread betting example prices taken from FinancialSpreads as of 1 May 2012
- Investors can also speculate on Gold in euros/$0.1 and US dollars/$0.1
Gold Trading Information and Data
Further news and information on the foreign exchange markets:
Financial Spreads is not responsible for the content of external / third party websites.
Financial Spreads Account
Also see:
Spread betting and CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit so you should ensure spread betting and CFD trading meet your investment objectives and if necessary seek independent advice.
The information and comments provided herein under no circumstances are to be considered an offer or solicitation to invest and nothing herein should be construed as investment advice. The information provided is believed to be accurate at the date the information is produced.
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