Metals

  • With City Index you can trade CFDs on a wide range of precious metals. With no commission and margins from 2.5%, access live prices on gold, silver, platinum and palladium.

    Metals CFD Example:Let's say our gold CFD price is 1250.1/1250.5 (sell price/buy price).

    Going Long

    You think that gold prices are currently undervalued at these levels and decide to buy (go long) 20 CFDs at 1250.5 (buy price). 

You were right: Over the coming days, the price of gold surges on increasing demand for the precious metal. When prices reach 1280.5, you decide to cash in your profits. We are now quoting a gold CFD price of 1280.5/1280.9. To close your trade, you now sell 20 CFDs at 1280.5. 



    Result: You bought at 1250.5 and sold at 1280.5, representing a 300-point movement in your favour, which at a trade size of 20 CFDs, nets you a profit of $6,000 (1280.5 – 1250.5 x 20 CFDs) (note gold CFD trade per is 0.1).

    Alternative scenario: If however, you were wrong and gold prices had fallen to 1220.5, you would net a $6,000 loss (1250.5 - 1220.5 x 20 CFDs). 


    Going Short:


    You think gold prices are overvalued at these levels and decide to sell (go short) 20 CFDs at 1250.1 (sell price). 

You were right: Over the coming days, some increased appetite for risk convinces investors to move money out of gold, causing gold prices to fall. When the prices reach 1220.1, you decide to cash in your profits. We are now quoting a gold CFD price of 1219.7/1220.1. To close your trade, you now buy back 20 CFDs at 1220.1. 

 



    Result: You sold at 1250.1 and bought back at 1220.1, representing a 300-point movement in your favour, which at a trade size of 20 CFDs, nets you a profit of $6,000 (1250.1 – 1220.1 x 20 CFDs) (note gold CFD trade per is 0.1). 


    Alternative scenario:
    If however, you were wrong and prices had risen to 1280.1, you would net a $6,000 loss (1280.1 - 1250.1 x 20 CFDs). 


     

  • Any Questions?

    Help and Support