When trading precious metals like Gold and Silver as CFDs (Contracts for Difference) on FXTRADING.com, it's important to understand the contract size and value. This guide explains how much each CFD contract is worth for these popular precious metals.
Gold CFD Contract Value
On FXTRADING.com, a standard Gold CFD contract is equivalent to:
100 troy ounces (1 brick of gold)
The total contract value is calculated by multiplying the current market price by 100
Example Calculation: If Gold is trading at $1,800 per troy ounce:
Contract value = $1,800 × 100 ounces = $180,000
This means that when you open a position of 1 lot of Gold, you're effectively trading the equivalent of $180,000 worth of gold (at $1,800/oz price).
Silver CFD Contract Value
On FXTRADING.com, a standard Silver CFD contract is equivalent to:
5,000 troy ounces
The total contract value is calculated by multiplying the current market price by 5,000
Example Calculation: If Silver is trading at $25 per troy ounce:
Contract value = $25 × 5,000 ounces = $125,000
This means that when you open a position of 1 lot of Silver, you're effectively trading the equivalent of $125,000 worth of silver (at $25/oz price).
Understanding Leverage and Margin Requirements
When trading precious metal CFDs on FXTRADING.com:
You don't need to pay the full contract value
Instead, you only need to maintain sufficient margin in your account
The required margin depends on the leverage available for your account
Higher leverage means lower margin requirements, but also increased risk
Price Movements and Profit/Loss Calculations
For Gold CFDs:
A $1 price movement per ounce = $100 profit or loss per standard contract
Example: If Gold moves from $1,800 to $1,805, a long position of 1 lot would gain $500 ($5 × 100 oz)
For Silver CFDs:
A $0.01 price movement per ounce = $50 profit or loss per standard contract
Example: If Silver moves from $25.00 to $25.10, a long position of 1 lot would gain $500 ($0.10 × 5,000 oz)
For additional information about trading precious metal CFDs, please contact our Live Chat support team through your Client Portal.