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*The information presents in this section is for educational purposes only. All the latest trading rules and specifications please refer to the Trading Rules for the most updated details.
An important feature of the precious metals market is its 24-hour operation. The market opens at 08:00 (GMT+8) on Monday until the closing at 04:45 on Saturday (daylight saving time). Daily scheduled maintenance at 05:00 – 07:00. *Max Online’s individual product trading hours may be different, please refer to “Trading Rules” for details.
The 24-hour daily transaction can be divided into 3 major trading sessions:
Asian Session: (Market open – 1600)
Relative to the total daily trading volume, the Asian trading volume is relatively low. Unless stimulated by breaking news, prices are generally range-bound trading. In recent years, due to the increasing demand for gold from Asian countries such as China and India, the trading volume has become increasingly active at noon every day.
European Session: (1600-0000)
Generally, the trading volume has increased significantly after the European market opened compared to the Asian session. After the ranging in the earlier session, there are higher chances of a breakthrough. Pay special attention to the daily economic data being released by the UK and the Eurozone.
American Session: (2000-Market Close)
Trading volume/price changes are the most active. When the US released economic data, usually at 20:30 (HKT-GMT+8), the volatility expanded, and the chance of breaking the early high/low is also high.
Another feature of the precious metals market is that it can be traded by buying longs and selling shorts. Like ordinary stock operations, you can buy and wait for the rise; however, there are no restrictions on short-selling in bullion operations. The precious metals can be sold at any time and wait for the decline. As long as you get the right direction, you have a profit opportunity.
Precious metals quote in USD/OZ. Gold is quoted in units of 2 decimal places. Silver is quoted in units of 3 decimal places.
Example (1): If the price of gold is 1600.50 USD/OZ – that means the gold price is 1600.50 USD per ounce.
Example (2): If the price of silver is 16.960 USD/OZ -that means the silver price is 16.960 USD per ounce.
* 1 ounce = 0.3kg
Standard lot size for gold is 100 oz / for silver is 5000 oz
Example (1): If you place an order for 1 lot of gold in our MT4 trading system, which means, you are trading 100 ounces of gold; If you place an order for 0.5 lot of gold in our MT4 trading system, which means, you are trading 50 ounces of gold;
Example (2): If you place an order for 1 lot of silver in our MT4 trading system, which means, you are trading 5000 ounces of silver; If you place an order for 0.5 lot of silver in our MT4 trading system, which means, you are trading 2500 ounces of silver;
Margin trading originated in London in the 1980s and then being adopted by the United States, Japan, Hong Kong and other financial centers. Precious metal margin trading is based on the principle of financial leverage. The maximum leverage for gold trading in Max Online is 1:400 / the maximum leverage for silver trading is 1:200.
Example (1): If you deposit USD 5,000 in trading gold, take our maximum leverage ratio (1:400) as an example, USD 5,000 deposited can be used for a trading equivalent to USD 2,000,000 in gold.
Example (2): If you deposit USD 5,000 in trading silver, take our maximum leverage ratio (1:200) as an example, USD 5,000 deposited can be used for a trading equivalent to USD 1,000,000 in silver.
*Be aware that increased leverage means increased risk.
We offer a maximum leverage of 1: 400 for gold trading / 1: 200 for silver trading.
Example (1) : Deposited USD 5,000 / buy long 1 lot at 1,600 USD/OZ
*Although we provide a maximum leverage of 1:400, investors are advised to evaluate their own risk tolerance level and carefully control the leverage ratio while trading.
Minimum required deposit = Total contract value / leverage ratio
Example (1) : Minimum required deposit for buying 3 lots of gold @ 1600 USD/OZ using 200x leverage
Example (2) : Minimum required deposit for buying 3 lots of gold @ 1600 USD/OZ using 200x leverage
It is generally recommended to deposit more funds than the minimum required to defend against market volatilities.
Profit/Loss = Price difference (Entry price – Liquidation price) x Contract Size
Example (1) : Buy long 2 lots @ 1600 USD/OZ / Liquidate @ 1609 USD/OZ (with gain)
Example (2) : Buy long 2 lots @ 1600 USD/OZ / Liquidate @ 1595 USD/OZ (with loss)
Example (3) : Sell short 0.5 lot @ 1600 USD/OZ / Liquidate @ 1598 USD/OZ (with gain)
Lot size: 100 ounce
Open price: 1,270.50
Funds required: USD 127,050
Lot size: 100 ounce
Open price: 1,270.50
Funds required: USD 635.25
In bullion trading, when floating positions are at a loss and the equity is below the minimum required margin level, all positions in the account will be forced to be liquidated by the system, which is called “Auto Closeout” or “Forced Liquidation”.
Positions will be closed out and pending orders will be cancelled automatically if net equity falls below 60% of the minimum required margin.
Auto Closeout level = Market price – (Free equity / Total contract value)
Example (1) : Buy long 1 lot of gold @ 1600 USD/OZ with USD 2500 in the account
Therefore, the Auto closeout level for this trade is @ 1579.80 USD/OZ.
Example (2) : Sell short 3 lots of gold @ 1610 USD/OZ with USD 6000 in the account
Therefore, the Auto closeout will occur @ 1620.34 USD/OZ for this trade.
Spread refers to the difference between the sell and buy price of a two-way price quote.In bullion trading, the spread is the transaction cost for the investors. (Some brokers may apply charges on clients e.g. commission and service charges apart from spread).
For example, gold trading is now 1270.00/1270.50.
In this example of gold trading, a quote of sell price 1270.00 versus buy price 1270.50, (1270.50 – 1270.00 = 0.5) 0.5 is the price spread.
Traders who hold positions over market closing will receive or pay rollover interest. According to the precious metal market practice, holding positions over market closing on Wednesday will calculate 3 days of interest; while holding positions on Friday to Monday will only calculate 1 day of rollover interest.
