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Profit / Loss Calculation
 Profit / Loss Calculation Formula | ||||||||||||||||||
| Profit Calculation Against US Dollars (Sell Price - Buy Price) X Contract Value X No. of Contracts Less (+/-) Interest = Profit / Loss | ||||||||||||||||||
| Local London Silver (XAG) | ||||||||||||||||||
| Example: Transaction: Sell 3 contracts of Spot Silver and settle on the same day. | ||||||||||||||||||
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| Interest Calculation Formula | ||||||||||||||||||
| Interest Calculation Against US Dollars (Closing Price X Contract Value) X (+/-) Interest rate / 360 X No. of day X No. of Contracts = Interest earned / Interest paid | ||||||||||||||||||
| Local London Gold (XAU) | ||||||||||||||||||
| Example : Transaction: Sell 3 contracts of Spot Gold and leave the position open for 1 month in 1st May. Assuming there is no change in Spot Gold price and interest is earned. | ||||||||||||||||||
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| Hong Hong Gold Market
Hong Hong Gold (100 taels gold of 99 fineness ) | ||||||||||||||||||
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| Hong Hong Gold ( 5000 grammes gold of 999.9 fineness ) | ||||||||||||||||||
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| Settlement Price | ||||||||||||||||||
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The settlement prices are used by members to settle their accounts with the exchange after each trading session. Settlement price is determined by taking the price of transaction, rounded to the nearest five or ten dollars, at the following time. GMT 03:30 and GMT 08:30 (Mon - Fri) | ||||||||||||||||||
| Premium Fixing | ||||||||||||||||||
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Premium is determined on each trading day. The Exchange will carry out physical settlement of gold and a premium will be determined whereby members are allowed to defer their physical contracts one day by exchanging premium between buyers and sellers . Premium indication HKD/ 100 taels At such times, members wishing to settle spot gold can register on board, so that the market can fix the premium for the day based on the supply and demand for physical gold and interest of money market change everyday. If the demand for physical gold is high, sellers who cannot deliver gold will pay premiums to buyers. In other words, long position will receive premiums. In the industry, this is called ¡§high interest¡¨ or ¡§plus premium¡¨. On the other hand, if gold supply to the market is high, this means that demand for cash rises, buyers who delay settlement will pay premiums to sellers. As such, short position will receive premiums. It is a situation of ¡§low interest¡¨ or ¡§low premium¡¨. If there is an equal number of physical gold supplied and demanded, the premium will be fixed. When neither side is required to pay premium, we call it ¡§flat interest.¡¨ As a counter measure to manipulation of premium, the exchange has set up a premium regulatory system to regulate the fluctuation of premium. It consists five levels. As premium can move either way, so the premium limit can be seen as a floor or a cap. When the disequilibrium of physical supply and demand of gold persists, the premium regulatory system will be triggered. Once the premium attains the limit, it must remain there for three days before moving up one level. Limits for premium at each level (calculated per $1000 of the settlement price) | ||||||||||||||||||
| (calculated per $1000 of the settlement price) : | ||||||||||||||||||
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| Gold Price Conversion Formula | ||||||||||||||||||
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| Weight Conversion | ||||||||||||||||||
| 1 tael = 37.429 grammes = 1.20337 troy ounces | ||||||||||||||||||
| Profit Calculation Hong Hong Gold Formula: (HKGT) | ||||||||||||||||||
| Profit Calculation Hong Hong Gold (100 taels ) | ||||||||||||||||||
| (Sell Price - Buy Price) X Contract Value X No. of Contracts Less (+/-) Premium / TT Rate = Profit / Loss | ||||||||||||||||||
| Example : Transaction: Buy 3 contracts of HKG (100 taels ) and settle on the same day. | ||||||||||||||||||
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