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Products
Commodities
Stock Indices

EXCHANGE-TRADED DERIVATIVE

A DERIVATIVE contract, traded through an authorized EXCHANGE and cleared

through a CLEARINGHOUSE, that is characterized by standard terms and
conditions, and is subject to standard MARGIN requirements and clearing rules.
Trading in exchange derivatives may occur in physical OPEN OUTCRY form, or
increasingly in electronic form. The three main classes of exchange-traded
derivatives are FUTURES, OPTIONS, and FUTURES OPTIONS. Contracts are available
on a broad range of national and international ASSET references, including
INTEREST RATES, FOREIGN EXCHANGE, EQUITIES, and commodities. Also known as
LISTED DERIVATIVE.

Two-Ways Trading
Two-way market environment opportunities arises in opening
a trading position (i.e. entering a new transaction) that
reflects market propensity/taking advantage of market price
movements.
Buy Long :Open Buy
Close Sell
Sell Short: Open Sell
Close Buy

Whats Gold?
Spot Market-Any market that deals in the
current price of a financial instrument
During economic crisis, what most likely will
happen?
Why? Hedging
A strategy to limiting or offsetting the
probability of lost from fluctuations in the
prices of commodities, currencies or securities

History of Gold
For thousands of years, gold has been valued
as a global currency, a commodity, an
investment and simply an object of beauty
Gold has attracted investors throughout the
centuries, protecting their wealth and
providing a 'safe haven' in troubled or
uncertain times
It offers investors insurance against extreme
movements in the value of other asset classes

Why Investors Buy Gold

Limited Supply
Intrinsic Value
A Currency
A Commodity
Safe Haven
More stable
Inflation Hedge
Of all the precious metals, gold is the most
popular as an investment

Growth, Recession & Uncertainty

As gold is a widely used industrial commodity
it benefits during economic booms
Gold also benefits during downturns due to
falling real rates and currency debasements
Gold is invariably the destination for flight to
safety scenarios during global tensions

Long Term Outlook

Low real rates in major Western economies
Currency wars
Growing demand from India and China
Long term gold is well positioned to make substantial future
gains

Short Term Outlook

Adjustment to monetary policy
Changes in sentiment to risk taking
Technical analysis
Short term golds price will fluctuate providing opportunities to
maximise profit

Maximise Profit
Risk
Tolerance
USD
Monetary
Policy

Short Term
Factors
Technical
Analysis

Fluctuating
Demand
Euro
Issues

Important

ISO 4217 Code for gold: XAU

Trading Contract Code: XULF
1 Gold Futures Contract: 1 Lot
Scale:
1 troy ounce = 31.103g = Current Market Price
1 Gold Bar = 400 troy ounces = 12.5kg
1 Lot = 100 troy ounces
Minimum Trading Lot = 3 lots

Margin Trading
Trading transaction by way of margin trading is a facility provided to you in
order to conduct a transaction whose value exceeds the paid-in capital.
Margin in gold trading serves as collateral that you pay to the futures
brokerage company as a security deposit, which serves to guarantee that
you are able to fulfil the payment obligation, thereby allowing you to
conduct transactions with the brokerage company.
Law No. 32 of 1997 on Commodity Futures Trading defines margin as a
given amount of money or securities that a customer must place in a
futures broker, futures broker in a member of a futures clearing, or a
member of a futures clearing in the futures clearing agency in order to
guarantee a futures contract transaction.

Margin Trading/Leverage

You are probably wondering how a small investor like yourself can trade
such large amounts of money. Think of your broker as a bank who
basically fronts you $100,000 to buy currencies and all he asks from you is
that you give him $1,000 as a good faith deposit, which he will hold for you
but not necessarily keep. Sounds too good to be true?
Well this is how trading using leverage works.
Typically the broker will require a minimum account size, also known as
account margin or initial margin. Once you have deposited your money
you will then be able to trade. The broker will also specify how much they
require per position (lot) traded.
For example, for every $1,000 you have, you can trade 1 lot of $100,000.
So if you have $5,000 they may allow you to trade up to $500,000 of Forex.
The minimum security (margin) for each lot will vary from broker to broker.
In the example above, the broker required a one percent margin. This
means that for every $100,000 traded, the broker wants $1,000 as a
deposit on the position.

How To Invest
Physical
Jewellery
Bullion
Coins
Non-Physical
Futures
ETFs

Disadvantages of Physical

Higher investment required

Jewellery designs increase price
Goldsmiths can be dishonest regarding purity
Storage and insurance costs are higher
Time consuming to buy and sell

Advantages of Futures/Spot

Low capital requirements margin trading

Much higher % capital gains
Efficiency
Two-way market

Three Types Of Market Analysis

Technical
Fundamental
Sentiment

Technical Analysis
Chart to visualize price movement
Old saying, "History tends to repeat itself"?
By looking at historical price movements,
potential price movement can be determined

Technical Analysis cont-d

Types of Charts
Three most popular types of charts:
Line chart
Bar chart
Candlestick chart
Line Charts
A simple line chart draws a line from one
closing price to the next closing price

Bar Charts
A bar chart is a little more complex. It shows the opening and
closing prices, as well as the highs and lows
The horizontal hash on the left side of the bar is the opening
price, and the right-side horizontal hash is the closing price
Also called "OHLC" charts, because they indicate the Open,
the High, the Low, and the Close for that particular currency

Candlesticks Charts
The sexiest thing about a candlestick, is their body
The larger block (or body) in the middle indicates the range
between the opening and closing prices
If the block in the middle is filled or colored in, then the
currency closed lower than it opened (Bearish)

 Long white candlesticks show strong buying pressure

The longer the white candlestick, the further the
close is above the open
Long black (filled) candlesticks show strong selling
pressure
The longer the black candlestick, the further the
close is below the open
In other words, the bears are kicking the bulls' asses
big time!

Mysterious Shadows
Upper shadows signify the session high. Lower shadows
signify the session low
If a candlestick has a long upper shadow and short lower
shadow, this means that buyers bid prices higher, but for one
reason or another, sellers came in and drove prices back down
to end the session back near its open price.
If a candlestick has a long lower shadow and short upper
shadow, this means that sellers forced price lower, but for
one reason or another, buyers came in and drove prices back
up to end the session back near its open price.

Basic Candlestick Patterns

Spinning Tops
Candlesticks with a long upper shadow, long lower shadow
and small real bodies
The color of the real body is not very important.
The pattern indicates the indecision between the buyers and
sellers.
The small real body (whether hollow or filled) shows little
movement from open to close, and the shadows indicate that
both buyers and sellers were fighting but nobody could gain
the upper hand.

 If a spinning top forms during an uptrend, this usually means

there aren't many buyers left and a possible reversal in
direction could occur.
If a spinning top forms during a downtrend, this usually
means there aren't many sellers left and a possible reversal in
direction could occur.

Marubozu
No shadows from the bodies
The high and low are the same as its open or close
The small real body (whether hollow or filled) shows little
movement from open to close, and the shadows indicate that
both buyers and sellers were fighting but nobody could gain
the upper hand.
If a spinning top forms during an uptrend, this usually means
there aren't many buyers left and a possible reversal in
direction could occur.
If a spinning top forms during a downtrend, this usually
means there aren't many sellers left and a possible reversal in
direction could occur.

Doji
Very small body that appear as a thin line
Doji candlesticks have the same open and close price or at
least their bodies are extremely short
Implies indecision or a struggle for turf positioning between
buyers and sellers
Neither buyers nor sellers were able to gain control and the
result was essentially a draw
4 Types

Significance/ Application
When a Doji forms on your chart after a series of candlesticks
with long hollow bodies (White Marubozu-s), the Doji signals
that the buyers are becoming exhausted and weakening.
Sellers are licking their chops and are looking to come in and
drive the price back down.

 If a Doji forms after a series of candlesticks with long

filled bodies (Black Marubozu-s), the Doji signals that
sellers are becoming exhausted and weak. In order
for price to continue falling, more sellers are needed
but sellers are all tapped out! Buyers are foaming in
the mouth for a chance to get in cheap.

Hammer and Hanging Man

The hammer and hanging man look exactly alike but
have totally different meanings depending on past
price action. Both have cute little bodies (black or
white), long lower shadows, and short or absent
upper shadows.

 The hammer is a bullish reversal pattern

The long lower shadow indicates that sellers pushed prices
lower, but buyers were able to overcome this selling pressure
and closed near the open
The hanging man is a bearish reversal pattern
Can also mark a top or strong resistance level
The long lower shadow shows that sellers pushed prices lower
during the session. Buyers were able to push the price back
up some but only near the open.

Inverted Hammer and Shooting Star

The inverted hammer and shooting star look identical
The only difference is whether you're in a downtrend or
uptrend
Both candlesticks have petite little bodies (filled or hollow),
long upper shadows, and small or absent lower shadows

 It shows that the sellers attempted to push

the price further down, but buyers came in
and overpowered them
The long upper shadow shows the buyers just
slightly overpowered the sellers
Therefore, it suggests that there is a possibility
of a reversal pattern

Name

Spinning
Top

Doji

White
Marubozu

Black
Marubozu

Bullish
or
How does it look
Bearish
like?
?

Name

Bullish or How does it look

Bearish?
like?

Hammer

Hanging
Man

Inverted
Hammer

Shooting
Star

Double Trouble - Dual Candlestick Patterns

The bullish engulfing pattern is a two candle stick pattern
that signals a strong up move may be coming. It happens
when a bearish candle is immediately followed by a larger
bullish candle.
This second candle "engulfs" the bearish candle. This means
buyers are flexing their muscles and that there could be a
strong up move after a recent downtrend or a period of
consolidation.

 On the other hand, the bearish engulfing pattern is the

opposite of the bullish pattern. This type of pattern occurs
when bullish candle is immediately followed by a bearish
candle that completely "engulfs" it.

Tweezer Bottoms and Tops

Reversal patterns. This type of candlestick pattern could
usually be spotted after an extended up trend or downtrend.

Evening and Morning Stars

The morning star and the evening star are triple candlestick
patterns that you can usually find at the end of a trend. They
are reversal patterns that can be recognized through these
three characteristics

Three White Soldiers and Black Crows

The three white soldiers pattern is formed

when three long bullish candles follow a
downtrend, signaling a reversal has occurred.
Most potent in-yo-face bullish signals,
especially when it occurs after an extended
downtrend and a short period of
consolidation.

Three Inside Up and Down

The three inside up candlestick formation is a trend-reversal
pattern that is found at the bottom of a downtrend. It
indicates that the downtrend is possibly over and that a new
uptrend has started. For a valid three inside up candlestick
formation.

Name

Bullish or
Bearish?

Bullish Engulfing

Bullish

Bearish Engulfing

Bearish

Tweezer Tops

Bearish

Tweezer Bottoms

Bullish

How does it look like?

Name

Bullish or
Bearish?

Morning Star

Bullish

Evening Star

Bearish

Three White
Soldiers

Bullish

Three Black Crows

Bearish

How does it look like?

Name

Bullish or
Bearish?

Three Inside Up

Bullish

Three Inside Down

Bearish

How does it look like?

Support and Resistance

- Revolves around the forces of supply and demand
The bottom line that prevents the price from declining
When price declines, buyers more incline to buy, sellers
become less inclined to sell
By the time the price reaches the support level, demand will
overcome supply and prevent the price from falling
below support.
Support level can be broken if bears have won out over bulls
Once support breaks, another support level will be
established

Resistance
The price ceiling that prevent price to rise further
When price increases, sellers more incline to sell, buyers more
reluctant to buy
Resistance level can be broken if bulls have won out over
bears
Once resistance breaks, a higher resistance level will be
established

Support And Resistance

Most widely used concepts in trading
Revolves around ?????

Plotting Support and Resistance

One thing to remember is that support and
resistance levels are not exact numbers.
Often times you will see a support or resistance level
that appears broken, but soon after find out that the
market was just testing it.
With candlestick charts, these "tests" of support and
resistance are usually represented by the candlestick
shadows.
Theory: Buy@Support + Sell@Resistance

Trend Lines
Trend lines are probably the most common form of technical analysis used
today. They are probably one of the most underutilized as well.
If drawn correctly, they can be as accurate as any other method.
Unfortunately, most traders dont draw them correctly or they try to make
the line fit the market instead of the other way around.
In their most basic form, an uptrend line is drawn along the bottom of
easily identifiable support areas (valleys). In a downtrend, the trend line is
drawn along the top of easily identifiable resistance areas (peaks).

Profitable Pattern

The Bounce
As the name suggests, one method of trading support and resistance
levels is right after the bounce
Instead of simply buying or selling right off the bat, wait for it to bounce
first before entering.
By doing this, you avoid those moments where price moves fast and break
through support and resistance levels.

The Break
The simplest way to play breakouts is to buy or sell whenever price passes
convincingly through a support or resistance zone. The key word here is
convincingly because we only want to enter when price passes through a
significant support or resistance level with ease.

The Aggressive Way

The simplest way to play breakouts is to buy or sell whenever

price passes
convincingly through a support or resistance zone. The key word
here is convincingly
because we only want to enter when price passes through a
significant support or
resistance level with ease.

Conservative Way
Hypothetical Speaking~~
You made a mistake and now, your account balance slowly
falling,
Do you...
Accept defeat, get the heck out, and liquidate your position?
Or
Hold on to your trade and hope price rises up again?

Fibonacci
Leonard Fibonacci was a famous Italian mathematician, and
discovered a simple series of numbers that created ratios
describing the natural proportions of things in the universe
The ratios arise from the following number series: 1, 1, 2, 3, 5,
8, 13, 21, 34, 55, 89, 144...
This series of numbers is derived by starting with 1 followed
by 2 and then adding 1 + 2 to get 3, the third number. Then,
adding 2 + 3 to get 5, and so on.
After the first few numbers in the sequence, if you measure
the ratio of any number to the succeeding higher number, you
get .618. For example, 34 divided by 55 equals .618.
If you measure the ratio between alternate numbers you get
.382. For example, 34 divided by 89 = 0.382

Cont-d

These are the ratios we have to know:

Fibonacci Retracement Levels
0.236, 0.382, 0.500, 0.618, 0.764
Fibonacci Extension Levels
0, 0.236, 0.382, 0.500, 0.618, 1.000, 1.382,
1.618

Cont-d
Fibonacci retracement levels are used by traders as potential
support and resistance areas
Since so many traders watch these same levels and place buy
and sell orders on them to enter trades or place stops, the
support and resistance levels tend to become a self-fulfilling
prophecy as everyone is using the same tool to predict the
price movements
Thats the reason Fibonacci ratios are called the Golden
Mean"

When to enter trade??

Formula- Fibo

High Price- Low Price= Difference (A)

0.00 % = Low price
0.236% = Low price + (A x 0.236) = Price
0.382% = Low price + (A x 0.382) = Price
0.500% = Low price + (A x 0.50) = Price
0.618% = Low price + (A x 0.618) = Price
0.764% = Low price + (A x 0.764) = Price
100% = High price

Golden Rules
Support 3

Support 2

Support 1

Current Price

Resistance 1

Resistance 2

Resistance 3

1567.97

1577.60

1586.58

1596.05

1600.54

1608.41

1615.83

*Advise Sell at S1 $1586.58

(Alternative Sell at R3 $1615.83)

*Advise Buy at R1 - $1600.54

(Alternative Buy at S3 - $1567.97)

Chart Patterns
Aid to spot conditions where the market is ready to break out
Can also indicate whether the price will continue in its current
direction or reverse
Most common Chart Patterns :
Double Top and Double Bottom
Head and Shoulders and Inverse Head and Shoulders
Rising and Falling Wedges
Bullish and Bearish Rectangles
Bearish and Bullish Pennants
Triangles (Symmetrical, Ascending, and Descending)

Double Top
A double top is a reversal pattern that is formed after there is
an extended move up
The "tops" are peaks which are formed when the price fails to
break through resistance level
After hitting this level, the price bounces off slightly, but then
return back to test the resistance level again
If the price bounces off of that level again, then you have a
DOUBLE top!

 Notice how the second top was not able to break the high of
the first top. This is a strong sign that a reversal is going to
occur because it is telling us that the buying pressure is just
about finished.
With the double top, we would place our entry order below
the neckline because we are anticipating a reversal of the
uptrend.
Occasionally, Triple Top might occur

Double Bottom
It is also a trend reversal formation, but this time we are
looking to go long instead of short.
These formations occur after extended downtrends when two
valleys or "bottoms" have been formed.

Head and Shoulders

A head and shoulders pattern is also a trend reversal
formation.
It is formed by a peak (shoulder), followed by a higher peak
(head), and then another lower peak (shoulder).
A "neckline" is drawn by connecting the lowest points of the
two troughs. The slope of this line can either be up or down.
Typically, when the slope is down, it produces a more reliable
signal.

 With this formation, we put an entry order below the

neckline.
We can also calculate a target by measuring the high point of
the head to the neckline. This distance is approximately how
far the price will move after it breaks the neckline.

Inverse Head and Shoulders

The name speaks for itself. It is basically a head and shoulders
formation, except this time it's upside down.
A valley is formed (shoulder), followed by an even lower valley
(head), and then another higher valley (shoulder).
These formations occur after extended downward
movements.

 We can see that this is just like a head and shoulders pattern,
but it's flipped upside down. With this formation, we would
place a long entry order above the neckline.
Our target is calculated just like the head and shoulders
pattern. Measure the distance between the head and the
neckline, and that is approximately the distance that the price
will move after it breaks the neckline.

Wedges
Wedges signal a pause in the current trend. When you
encounter this formation, it signals that traders are still
deciding where to take the pair next.
Wedges could serve as either continuation or reversal
patterns

Rising Wedge
A rising wedge is formed when price consolidates between
upward sloping support and resistance lines.
With prices consolidating, we know that a big splash is
coming, so we can expect a breakout to either the top or
bottom.
What will
happen after this?

Cont-d

A rising wedge formed at the end of an uptrend. Notice how

price action is forming new highs, but at a much slower pace
than when price makes higher lows.
If the rising wedge forms after an uptrend, it's usually a
bearish reversal pattern.
On the other hand, if it forms during a downtrend, it could
signal a continuation of the down move.

Falling Wedge
Just like the rising wedge, the falling wedge can either be a
reversal or continuation signal.
As a reversal signal, it is formed at a bottom of a downtrend,
indicating that an uptrend would come next.
As a continuation signal, it is formed during an uptrend,
implying that the upward price action would resume.
Unlike the rising wedge, the falling wedge is a bullish chart
pattern.

Rectangles
A rectangle is a pattern formed when price is bounded by
parallel support and resistance levels.
A rectangle exhibits a period of consolidation or indecision
between buyers and sellers
The price will "test" the support and resistance levels several
times before eventually breaking out.
Can be either bullish or bearish

Pennants
Similar to rectangles, pennants are continuation patterns
formed after strong moves.
After a big upward or downward move, buyers or sellers
usually pause to catch their breath before taking the pair
further in the same direction. Because of this, the price
usually consolidates and forms a tiny symmetrical triangle,
which is called a pennant

Bearish Pennants
While the price is still consolidating, more buyers or sellers
usually decide to jump in on the strong move, forcing the
price to bust out of the pennant formation.
A bearish pennant is formed because some sellers close their
positions while other sellers decide to join the trend,
offsetting each other, making the price consolidate for a bit.

Triangles
Symmetrical Triangle
A chart formation where the slope of the price's highs and the slope of the
price's lows converge together to a point where it looks like a triangle.
As these two slopes get closer to each other, it means that a breakout is
getting near. No one knows which direction the breakout will be, but we
do know that the market will most likely break out.

Ascending Triangle
This type of formation occurs when there is a resistance level
and a slope of higher lows
Which direction will it go?
2 Possibilities:
- The price will break out past the resistance
- The resistance level is too strong, and there is simply not
enough buying power to push it through (most likely)

Descending Triangle
Same goes with Descending Triangle
"Which direction will it go?
2 Possibilities:
- The price will break through the support level
- The support level is too strong, and there is simply not
enough selling power to push it through (most likely)

All in All: Reversal Patterns

All in All: Continuation Patterns

All in All: Bilateral

Chart Pattern

Forms
During

Type of Signal

Next Move

Double Top

Uptrend

Reversal

??

Double Bottom
Head and
Shoulders
Inverse Head and
Shoulders
Rising Wedge
Rising Wedge
Falling Wedge
Falling Wedge
Bearish Rectangle
Bullish Rectangle
Bearish Pennant
Bullish Pennant

Downtrend

Reversal

??

Uptrend

Reversal

??

Downtrend

Reversal

??

Downtrend
Uptrend
Uptrend
Downtrend
Downtrend
Uptrend
Downtrend
Uptrend

Continuation
Reversal
Continuation
Reversal
Continuation
Continuation
Continuation
Continuation

??
??
??
??
??
??
??
??

Parabolic SAR (Stop & Reversal)

Indicates potential reversals in price movement

When the dots are below the candles, it is a buy signal
When the dots are above the candles, it is a sell signal
Best used in markets that have long rallies and downturns
DON'T use this tool in a choppy market where the price
movement is stagnant

How to trade using Parabolic SAR

To Exit Trades

You can also use Parabolic SAR to help you determine whether you should close
your trade or not.
Check out how the Parabolic SAR worked as an exit signal in daily chart above.

Stochastic
The Stochastic is another indicator that helps us determine where a trend
might be ending.
An oscillator that measures overbought and oversold conditions in the
market

How to trade using Stochastic

When the Stochastic lines are above 90 (the red dotted line ), it means the
market is overbought
When the Stochastic lines are below 10 (the blue dotted line), it means
that the market is oversold.

As a rule of thumb,
we buy when the market is oversold,
we sell when the market is overbought

Fundamental Analysis
Current issues - economic, social, and political forces
For instance, unemployment rates, inflation, GDP..
Certain events like an increase in unemployment rate can
affect a country's economy and the demand for its currency
How?? By reading news~~
Why is this important??
Efficient Market Hypothesis (EMH)
Weak EMH prices reflect on all past publicly available information
Semi-strong EMH - prices reflect all publicly available information and that
prices instantly change to reflect new public information
Strong EMH - prices instantly reflect even hidden or "insider" information

Tradable Reports

Employment Growth
Interest Rate decisions
Trade Balance
Gross Domestic Product
Retail Sales
Durable Goods
Inflation reports (Consumer Price Index and Producer Price
Index)
Foreign Purchases report (TIC Data)
Non-Farm Payroll

Gold prices are inversely related to the US Dollar Exchange Rate changes. When
the price of the US Dollar falls, the price of gold will strengthen, due to increasing lack
of public trust in regards to the dollar as well as global foreign exchange/currencies;
i.e. when major currencies start to weaken.
Gold has always been entrusted as a primary mode of transaction/currency for
centuries, and till recently, Gold is often regarded as a
solid investment instrument, moreover in uncertain economic times (i.e. a safe haven
/ form of hedging ones funds against times of global financial crisis).
However, there are times where the price ofgold can rally together to exchange USD.
Case in point, when crude oil price increases whilst the US Dollar is strengthening, as
Crude Oil significantly affects the increase or decrease in gold prices.
As the leading price indicator of most raw commodity markets, crude oil prices are
directly proportional to the price of gold. Examples being the Gold Mining companies
globally purchase their Oil Stocks in bulk, moreover via futures contracts tied to
current oil prices, thus when global price of oil increases, so does the price of gold (&
vice versa).
Another factor affecting the price of gold is war and conflict in a country that affects
global state of economics and politics (Example:
The North African War, European Union Sovereign Debt Crisis, US Debt Crisis @ 2011,
et al)

Sentimental Analysis
In world of Finance, what are the two greatest
emotional motivators?
Greed and Fear
The current economy, act before the market
adjusts itself based on the emotional
motivators..
For instance, US debt ceiling, what
happened??

Risk Management
Cut Loss

Cut your losses" means that if you continue, you will lose
much more. So it would be better to stop now and be content
that your losses didn't get any worse

Holding System
Set a limit or a target for every transaction, at the same time
set a stop loss for you. Don't take any action if the market
pacing up and down and it always will. Take your winning if
happen so and prepare to take risk control if going near your
stop loss.

Locking System
Set a target and stop loss for every trade. When market change direction
and come near your stop loss and you do not wish to use the cut loss
system as strong indicators showing trend will continue, you can lock it by
trading one more transaction. When market starts to pull back and
indicators showing, take your profit for the transaction which is winning
and wait for the first transaction to win too. Market tends to move up and
down, you can gain profit from both ways.

Rolling/Pyramid System
Rolling is one of the techniques used to gain additional profit via
performing a new transaction by doubling up in the same direction from
the former transaction, as it used to gain the equal if not more profit in
the same or faster time taken than the previous transaction.

Switching
Switching is one of the techniques used to change the transaction
direction to the opposition direction via performing a new transaction in
the opposite direction from the former transaction (by doubling up the
lots) as it will switch the risk of the transaction and profit from it. Hence,
the switch covers the loss and gain you profit.

Spread
All two-way price quotes, the bid and ask. The bid is always lower than
the ask price.
The bid is the price in which the dealer is willing to buy the base
instrument in exchange for the quote instrument. This means the bid is
the price at which you (as the trader) will sell.
The ask is the price at which the dealer will sell the base instrument in
exchange for the quote instrument. This means the ask is the price at
which you will buy.
The difference between the bid and the ask price is popularly known as
the spread.

Tick
Financial markets move in different size price increments, and
the minimum price movement is known as a tick. Futures
markets often have specific tick sizes.
Tick sizes and tick values are part of the contract
specifications for all financial markets.

Trading Rules/Specification
Market

Loco London Gold Transaction

Contract Code

XULF

Contract Size (By lot)

100 Troy Ounces

Spread

USD$ 0.80 = USD240 per transaction

Leverage

1: 300

Minimum Trade

3 Lots

Maximum Trade

18 Lots

Tick (1 tick = USD$0.05)

USD$0.05 / troy ounce

Value per Tick

USD$0.05 X 3 lots X 100 troy ounces

Margin Requirement

= USD$15.00
Day Trade USD$1,500
Straddle

USD$ 3,000

Overnight Trade USD$30,000

Brokerage Fees

USD$120

Trading Hours (Jakarta Time)

Summer: Mon 7.00am Thurs 3.30am

Winter: Mon 7.00am Thurs 4.30am
Summer: Fri 7.00am- Sat 12.30am

Winter: Fri 7.00am- Sat 1.30am

Margin Call
In the event that money in your account falls below margin
requirements (usable margin), your broker will close some or
all open positions.
This prevents your account from falling into a negative
balance; nevertheless, you have a choice to top up your
account to continue holding your positions.
Or you may liquid your holding position and do the necessary

Capital

USD 30, 0000.00

Market

Loco London Gold Transaction

Contract Size (By lot)

100 Troy Ounces

Margin Requirement

Day Trade

USD$1,500

Straddle

USD$ 3,000

Overnight Trade USD$30,000

Average Movement per Day

USD $5.00 USD $30.00

Tick (1 tick = USD$0.05)

USD$0.05 / troy ounce

Value per Tick

USD$0.05 X 3 lots X 100 troy ounces

= USD$15.00
One Week

5 Days

One Month

20 Days

Transaction Per Month

15 Transaction

Target Per Transaction

20 Ticks

Profit Per Transaction

20 Ticks x USD $15.00

= USD $300.00

Brokerage Fee Per Transaction

USD $120.00

Net Profit Per Month

15 Transaction x( USD $300.00- USD

$120.00)
= USD $2700 or 9 %

Clearing House

JFX