Buy it in
It is also called buying up or going long, which means buying a certain number of lots based on the assumption that the price will rise.
Sell
Also called buying on the dip or short selling, it means judging that the price will fall, and selling a certain number of lots.
Open a position
Also called opening a position, it refers to buying or selling a certain number of lots.
Lot size
Refers to the amount of London gold/silver bought and sold in each transaction. One lot of London gold is equal to 100 ounces, and one lot of London silver is equal to 5,000 ounces. That is, 0.1 lot of London gold is equal to 10 ounces, calculated in proportion.
point
1 point refers to US$0.01/ounce of the London gold/silver price, that is, when the London gold/silver price rises or falls by US$0.05/ounce, it is equivalent to an increase or decrease of 5 points.
Minimum fluctuation
Each time London gold ticks, it rises or falls by at least 1 point, which means that the price of London gold per ounce rises or falls by $0.01. Each time London silver ticks, it rises or falls by 1 point, which means that the price of London silver per ounce rises or falls by $0.01.
Margin
There are two types of accounts in Lingfeng Precious Metals Co., Ltd. for the collateral funds that must be invested when opening a position:
General investor account, the basic margin for 1 lot of London gold/silver is 2% of the total contract value, that is, when the gold price is US$2,000/ounce, the margin per lot is US$4,000;
Advanced investor account, a fixed basic margin is charged, and the minimum 1 lot of London gold/silver is only US$1,000.
Forced liquidation: When the investor’s margin level reaches or falls below 30%, the system will execute forced liquidation to prevent further risk expansion.
Forced liquidation
When the investor’s margin level reaches or falls below 30%, the system will execute forced liquidation to prevent further risk expansion. Before the weekend and a short period of time at the beginning of Monday’s market opening (subject to announcement), the margin ratio for forced liquidation will be increased to 100%, and you need to pay attention to the funds of the position during this period. Reminder: overnight interest will be charged across weekends, and the overnight interest situation must also be taken into account.
commission
The transaction fees charged when trading in the traditional broker model are not charged for transactions conducted through the online trading platform.
T+0
It means that the position can be closed on the day of opening, and T+1 means that the position can be closed on the second day (i.e. one day later) after opening. The number after T indicates how many days after opening the position can be closed. The trading platform can close the position immediately after opening, so we belong to T+0 trading. For example, stocks cannot be sold on the day of purchase, and can only be sold on the next day, which belongs to T+1 trading.
Contract Unit
Refers to the quantity bought and sold in a transaction of 1 lot of London gold/silver. The contract unit of 1 lot of London gold is 100 ounces, and the contract unit of 1 lot of London silver is 5,000 ounces.
ounce
The ounce in London gold/silver trading refers to the troy ounce, which is a unit of measurement for precious metal commodities. 1 troy ounce = 31.034768 grams.
Spread
It refers to the difference between the buying price and the selling price in the trading platform, which is the transaction cost of opening a position. The company will charge a spread fee when opening a position. The London gold standard spread is $0.5/ounce, and the London silver standard spread is $0.03/ounce.
Overnight interest
It means that if the position is not closed on the day of opening, and the position is held until the next day, overnight interest will be generated. Both long and short positions need to pay overnight interest according to the closing price of the day, the corresponding interest rate and the number of overnight days. The overnight interest rate for long positions is -1.75%, and the overnight interest rate for short positions is -0.15%
Hold positions overnight
Overnight is not divided by 12:00 am. After opening a position and holding it until 5:59:59 am the next day, overnight interest will be generated. The time is subject to the records displayed by the system.
Pending Orders
A pending order is to set an ideal transaction price. When the latest market price reaches the price set by the customer, the system will automatically open a position. The advantage of a pending order is that customers can select the transaction type, lot size and target transaction price by themselves, without having to pay attention to the market conditions or open a trading platform for a long time.
Stop Profit
Stop profit (also called ‘profit’) refers to setting a closing price for a transaction in advance. When the market price reaches the set stop profit price, the system automatically closes the transaction. The stop profit setting in the MT4 platform is used to lock in profits to prevent the loss of profits that have been reached due to price changes. The stop profit price needs to be set in the profit area of the price (that is, the stop profit price for buying a rising position should be set above the opening price, and the stop profit price for buying a falling position should be set below the opening price). The stop profit price of London gold must be at least 200 points away from the current price and at most 9,000 points, and the stop profit price of London silver must be at least 20 points away from the current price and at most 9,000 points.
Stop Loss
Stop loss means setting a closing price for a transaction in advance. When the market price reaches the set stop loss price, the system automatically closes the transaction. The stop loss setting in the MT5 platform is used to control losses. The stop loss price needs to be set in the loss area of the price (that is, the stop loss price for buying a rising position should be set below the opening price, and the stop loss price for buying a falling position should be set above the opening price). The stop loss price of London gold needs to be at least 200 points away from the current price and at most 9,000 points, and the stop loss price of London silver needs to be at least 20 points away from the current price and at most 9,000 points.