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Trading Related

1. What is the trading hours for precious metals trading with the Chancellor Precious Metal ?

Our electronic trading platform operates on a 24 hours continuous basis except for weekends and international market holidays. Trading hours are as follows:

Loco London Gold/Loco London Silver

Summer Time 07:00 Monday to 3:00 Saturday except holidays (Beijing Time)
Winter Time 08:00 Monday to 03:30 Saturday except holidays (Beijing Time)

Renminbi Kilo Gold Bar

07:00 Monday to 05:00 Friday except holidays (Beijing Time)
07:00 Friday to 03:00 Saturday except holidays (Beijing Time)

2. What kind of Pending Orders are available?

We provide 4 types of Pending Orders : Buy Limit Order, Sell Limit Order, Buy Stop Order and Sell Stop Order

Buy Limit Order A Buy Limit Order means placing a preset price to buy, under normal market conditions the preset price must be lower than the current running price by at least 200 pips for LLG or at least 20 pips for LLS. After placement of the said order, the system would execute a new buy order when the market price drops to the preset price. A Buy Limit Order is used to predict that the market would rebound upwards when the price drops to the preset price.
Sell Limit Order A Sell Limit Order means placing a preset price to sell, under normal market conditions the preset price must be higher than the current running price by at least 200 pips for LLG or at least 20 pips for LLS. After placement of the said order, the system would execute a new sell order when the market price rises to the preset price. A Sell Limit Order is used to predict that the market would rebound downwards when the price rises to the preset price.
Buy Stop Order A Buy Stop Order means placing a preset price to buy, under normal market conditions the preset price must be higher than the current running price by at least 200 pips for LLG or at least 20 pips for LLS. After placement of the said order, the system would execute a new buy order when the market price rises to the preset price. A Buy Limit Order is used to predict that the market would continue to rise when the price breaches the preset price.
Sell Stop Order A Sell Stop Order means placing a preset price to sell, under normal market conditions the preset price must be lower than the current running price by at least 200 pips for LLG or at least 20 pips for LLS. After placement of the said order, the system would execute a new sell order when the market price drops to the preset price. A Sell Limit Order is used to predict that the market would continue to drop when the price breaches the preset price.

Note :

The difference required between the market price and the preset price in respect of pending orders including stop loss/take profit orders may vary under different circumstances. Chancellor Precious Metals Limited reserves the right to amend such conditions without prior notice and the settings adopted in the trading platform shall prevail.

3. What is account equity?

Equity indicates the account's net worth, taking into consideration all realized profit and loss together with any floating profit and loss. Equity = Account Balance – Total Profit/Loss. If a client deposits an initial margin of US$200,000.00 and accumulates a total profit/loss of US$10,000.00, then his equity shall be US$210,000.00.

4. How to calculate trading profit and loss?

Trading Profit/Loss Calculation :(Sell Price – Buy Price) X Contract Size X No. of Contracts – Commission + Swap

As long as the market price moves along the direction of the order placed, profit is expected. So one can expect profit from a buy order if the market price rises above his executed price and vice versa. The client can realize the trading profit anytime by liquidation. The profit depends on the price fluctuation and the number of contracts traded.

Example :
Client buys 5 lots LLG at the price of US$1,258.00 and liquidates the position at the price of US$1,340.00 on the same day.

Profit/Loss Calculation :
(US$1,340.00 – US$1,258.00) X 100 Troy Ounce (Contract Size) X 5 Lots (No. of Contracts) – US$250.00 (Commission) = US$40,750.00

5. What is "spread"?

The "Spread" refers to the difference in price quoted for buy and sell which constitutes the cost of opening a new position and charged upon execution. The standard spread is US$0.50/troy ounce for LLG and US$0.05/troy ounce for LLS.

6. Under what circumstances would the system execute "forced liquidation"?

When the usable funds of your trading account becomes lower than 20% of the margin required, the system will initiate "forced liquidation" of all or part of your open positions until your usable funds returns to above 20% of the margin required.

7. What is the margin required for trading each lot of LLG and LLS?

Margin Requirement is 2% contract value.

8. Is the Interest Swap fixed?

No, interest swap differs for positions traded in different directions. Currently, clients holding a buy position overnight will be charged an interest swap of US$9.00 while clients holding a sell position overnight will be charged an interest swap of US$2.00. However, the Dealer has the right to revise the interest swap according to market rates.

9. How to calculate swap interest?

Interest Swap = No. of Contracts X Interest Swap X No. of Days position held

Example :
Client bought 5 lots LLG and held the position for three days.

Interest Swap Calculation :
5 (lots) X -US$12.00 (Interest Swap for buy positions) X 3 (days) = -US$180.00

Client has to pay an interest swap of US$180.00 for holding the above positions.

Example :
Client sold 2 lots LLG and held the position for two days.

Interest Swap Calculation :
2 (lots) X –US$2.00 (Interest Swap for sell positions) X 2 (days) = -US$8.00

Client has to pay an interest swap of US$8 .00 for holding the baove positions.

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