Spot Gold trading

Gold Trading

Since the turn of the millennium, spot gold trading has re-gained popularity thanks to greater price volatility and easy access via online brokers. ThinkForex has structured its gold trading to ensure customers can trade gold contracts in an intelligent manner. Below is a list of benefits this entails:

Gold trading benefits

  • Spreads as low as 10 cents (Pro/VIP accounts)
  • Trade in increments as small as 1 ounce
  • No contract expiration
  • 500:1 leverage to allow for both conservative and aggressive strategies
  • Trade side-by-side with forex pairs

Gold trading example

Margin calculations

Margin calculation (100 x price x lot size) / leverage
Example: 100 x 1425.00 x 1.0 = $142500 / 200 = $712.50
Leverage is 200:1 in this example
Gold moves in 0.10 increments with a value of $10 per 1.0 lot. Gold whole increment values can be calculated by multiplying tick value, lot size, and market movement (closing price - open price x 10)
In this example, the position (0.25 lot) was closed at 1440.00 from a 1438.00 open. Market movement = (1440.00 - 1438.00) X 10 = 20 whole increments P&L Calculation 10 x 0.25 x 20 = $50

Contract specifications

Contract symbol XAU/USD
Contract size 100 oz
Whole increment size 0.10
Whole increment value per 1.0 lot $10
Trading hours (GMT) Sunday 23:00 - Friday 22:00

To illustrate how spot Gold trading with ThinkForex works, let's take a hypothetical example:

Suppose a trader opens up an account with $5,000. Since 500:1 leverage is offered, they can buy $2.5 million worth of gold (500 * 5,000 customer account balance). (Leverage should be used with great caution, as using extreme leverage can result in both rapid gains and rapid losses.)

For convenience sake, let's assume gold is trading at $1,000. This would mean the trader can buy up to 2,500 ounces of gold (2,500,000 / 1,000 = 2,500).

Let's say the trader buys 2,000 ounces of gold, or $2,000,000 worth of gold. In such a scenario, the trader's margin requirement is approximately $4,000. If the floating value of the trader's account falls below this amount, the trade will automatically be closed out.

In our example, If the price of gold declines by just 0.50, the trader will have a floating of loss of 1,000 (.50 * 2,000 ounces purchased = 1,000). In this scenario, the customer's gold trade would be closed out immediately. If the trader uses less leverage, perhaps 10 ounces, they can tolerate more price fluctuations.

Ultimately, Gold trading with ThinkForex is virtually identical to how forex trades occurred. For a full breakdown of all the contract terms ThinkForex provides for gold trading, see our contract specifications page.

Contact ThinkForex


Level 11, 636 St. Kilda Road.

Melbourne, VIC, Australia 3004

AFSL Number: 424700

ABN Number: 69 158 361561

AU: +61 3 9093 3400



TF Global Markets (UK) Limited.

2 Copthall Avenue, London, EC2R 7DA.

FCA Number: 629628

Registration Number: 09042646

UK: +44 203 514 2374

CN: +86 400 990 8300

Proud Supporter of:
Proud gold supporter of the Champion for Children Program - Unicef
Follow us