Bex500 Commodity profit-loss calculation

◆ Commodity introduction

There are four types of Bex500 commodity: Brent contract(BRENTBRN)、WTI Oil(WTI)、Gold(XAUUSD)、Silver(XAGUSD)All Bex500 commodity contracts are quoted using USD

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◆ How to trade if you predict appreciation

Take Gold (XAUUSD) as an example. When the price of other markets (say the stock market) sharply fluctuates, or you predict that there will be global risk, the price of Gold(XAUUSD) may go up.

【For Example】

> A trader, who received the news about Sino-US negotiations predicted that global risk aversion will cause appreciation in gold. He decided to trade as follows.

> He predicted that the current price (August 1st) price of Gold (XAUUSD)=1388.49 will rise soon.

> He bought a 100 ounce Gold (XAUUSD) contract with 100x leverage and input 1388.49(one ounce gold value) as the margin. 

> After the price of Gold (XAUUSD) rose up to 1507.21, Trader A closed the order. 


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In fact, since August 1st, BTC prices have fallen. Because trader A trade had a Gold (XAUUSD) contract, he avoided the fluctuation of BTC, and received $11872 USDT profit by the margin of 1388.49 from the Gold (XAUUSD) contract.

Because all profit is settled by USDT or BTC, Trader A’s profit will exchange to his settlement account currency by the current exchange rate eventually.


◆ How to trade if you predict price depreciation?

The rise of the US dollar price will usually cause the fall of the Gold (XAUUSD) price. Trader A predicts that the US dollar price will rise and plans to short Gold (XAUUSD)

【For Example】

> He predicted that the current price of Gold (XAUUSD)=1507.21 will soon decline.

> He sold 100 ounce Gold (XAUUSD) contract with 100x leverage and input 1507.21(one ounce gold value) as the margin. 

> After the price of Gold (XAUUSD) declined to 1388.49, Trader A closed the order. 


commodity profit2.png


Trader A received profit 11872 USDT by predicting the trend of Gold (XAUUSD) price.

Because all profit is settled by USDT or BTC, Trader A’s profit will eventually exchange to his settlement account currency by the current exchange rate. 


Learn more about  Bex500 Forex profit-loss calculation and Bex500 perpetual contract


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Risk Warning The Financial Products offered by the company include Contracts for Difference ('CFDs') and other complex financial products. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, CFDs may not be suitable for all investors because it is possible to lose all of your invested capital. You should never invest money that you cannot afford to lose. Before trading in the complex financial products offered, please understand the risks involved.

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