Guide to Gold Spread Betting

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Financial Spreads: Spread Betting and CFD Trading

Losses can exceed deposits

Where Can I Spread Bet on Gold?

Financial Spreads offers clients an array of commodities including gold, silver, US crude oil and Brent crude oil.

Where Can I Access Live Gold Prices?

FinancialSpreads offers clients live prices on numerous spread trading and CFD markets including gold and a wide range of other commodities, FX, stock market indices and stocks prices.

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.

Indicative Prices

Prices shown are delayed by 15 minutes, indicative only, and subject to our website terms and conditions.

Where Can I Get Live Gold Charts?

When using a FinancialSpreads account clients can access real-time candlestick charts for gold and more than 1,000 other spread trading and CFD markets.

Along with several chart types, the package also has a wide array of options:
Example Financial Spreads commodity chart:

Commodities Spread Betting Charts



How to Spread Bet on Gold

Let's say that you look at FinancialSpreads and the quote is:

  Gold Rolling Spot Sell

1229.4
Buy

1229.8


This is a brief example of how the market works...

Spread Betting MarketGold Rolling Spot
The Spread$1,229.4 - $1,229.8
How This WorksYou can spread bet on the Gold Rolling Spot market to push:

  Spread Betting Above $1,229.8, or
  Spread Betting Below $1,229.4

This spread betting market is a Rolling market which means that there is no final closing date for this trade. If you don't close your trade and the session ends then your position will roll over to the next session.

If a trade does roll over then you will either receive or be charged a small fee for overnight financing depending upon whether you are betting on the market to go down or up. For further details see Rolling Spread Bets.
Points (Units) TradedFinancial spread bets on the Gold market are made in £x per $0.1.

Where $0.1 is 10¢ of the metal's price movement.

E.g. if Gold changes by $4.00 then you would lose or gain 40 times your stake.
Stake Size per UnitYou work out how much you are going to stake per $0.1, e.g. £2 per $0.1, £8 per $0.1, £20 per $0.1 etc.
Short Staking ExampleIf, for example, you chose a stake of £4 per $0.1 and Gold moves $2.70, you would lose / win £4 per $0.1 x $2.70 = £108.


Spread Betting Example - Going Long of Gold

Spread betting on the price of precious metal to rise

You Decide to Buy or Sell Gold going:

  Spread Betting Above $1,229.8? or
  Spread Betting Below $1,229.4?

You Might Choose to Go Long   Spread Betting Above $1,229.8
You Choose How Much to Risk, Let's Assume You Opt For £2 per $0.1
So What Next?
  • You will make £2 for every $0.1 Gold moves higher than $1,229.8
  • You will lose £2 for each $0.1 Gold goes lower than $1,229.8
If You Are Spread Betting on a Market to Increase Your P/L = (Settlement Price - Opening Price) x stake
 
Scenario 1
Gold increases and the spread trading market is moved to $1,237.2 - $1,237.6. So you would see this on Financial Spreads:   1237.2   1237.6
Time to Lock in Your Profit? You could opt to keep your trade open or close it, i.e. close your trade for a profit. In this case you choose to settle your trade and sell the market at $1,237.2.
Your P/L = (Settlement Price - Opening Price) x stake
($1,237.2 - $1,229.8) x £2 per $0.1
$7.4 x £2 per $0.1
Your P/L = £148 profit
 
Scenario 2
Gold decreases and the spread betting market is revised and moved to $1,223.3 - $1,223.7. Therefore you would see this on Financial Spreads:   1223.3   1223.7
Close and Restrict Your Loss? You may decide to leave your spread bet open or close it, i.e. close your trade to limit your losses. For this example, you decide to close your trade by selling at $1,223.3.
Your P/L = (Settlement Price - Opening Price) x stake
($1,223.3 - $1,229.8) x £2 per $0.1
-$6.5 x £2 per $0.1
Your P/L = -£130 loss


Worked Spread Betting Example - Shorting Gold

Spread betting on the price of precious metal to fall

You Decide Whether to Go Long or Short Gold moving:

  Spread Betting Above $1,229.8? or
  Spread Betting Below $1,229.4?

You Might Choose to Sell   Spread Betting Below $1,229.4
You Select Your Stake Size, Let's Say You Select £3 per $0.1
Now What?
  • You will lose £3 for each $0.1 Gold rises higher than $1,229.4
  • You will make £3 for each $0.1 Gold moves lower than $1,229.4
If You Go Short With a Spread Bet Your P/L = (Opening Price - Settlement Price) x stake
 
Scenario 3
Gold slips and the financial spread betting market becomes $1,224.5 - $1,224.9, i.e. on Financial Spreads you'd see:   1224.5   1224.9
Lock in a Profit? You may choose to let your bet run or close it and lock in a profit. In this case you opt to settle your position by buying the market at $1,224.9.
Your P/L = (Opening Price - Settlement Price) x stake
($1,229.4 - $1,224.9) x £3 per $0.1
$4.5 x £3 per $0.1
Your P/L = £135 profit
 
Scenario 4
The metal climbs and the market is revised and is set at $1,232.9 - $1,233.3:   1232.9   1233.3
Time to Restrict Your Loss?You may decide to leave your position open or close it and restrict your loss. In this example you decide to settle your bet by buying at $1,233.3.
Your P/L = (Opening Price - Settlement Price) x stake
($1,229.4 - $1,233.3) x £3 per $0.1
-$3.9 x £3 per $0.1
Your P/L = -£117 loss

Where Can I Practice Financial Spread Betting on Gold?

FinancialSpreads offer a free Demo Account where you can practice your CFD trading and spread betting.

Using the Demo Account you can also try out new strategies and access the charts for markets like gold.

The Demo Account offers a large variety of markets including exchange rates, stocks, commodity markets and index markets.

Click Here to Open a Free Demo Account.



Gold Commitments of Traders Report - 28 Nov 2017


Futures Only Positions, CMX , Code 88691, (Contracts of 100 troy ounces)

Reporting Firms Non-Reportable Positions
Non-Commercial
Commercial Total Reportable
 
Commitments Open Interest Commitments
Long Short Spreads Long Short Long Short Long Short
287,384 62,967 52,355 116,831 363,372 456,570 478,694 503,810 47,240 25,116
 
Changes from 21 Nov 2017 Change in Open Interest Changes from
Long Short Spreads Long Short Long Short Long Short
14,450 -8,140 -31,740 -8,025 13,460 -25,315 -26,420 -27,802 -2,487 -1,382
 
Percent of Open Interest for Each Category of Trader
Long Short Spreads Long Short Long Short   Long Short
57.0% 12.5% 10.4% 23.2% 72.1% 90.6% 95.0%   9.4% 5.0%
 
Number of Traders in Each Category Total Traders  
Long Short Spreads Long Short Long Short    
189 69 83 46 51 275 174 338    
 
Long/Short Commitments Ratios   Long/Short Ratio
Ratio   Ratio Ratio   Ratio
4.6:1   1:3.1 1:1   1.9:1
 
Net Commitment Change  
22,590  


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