Swap for gold, how large is its size and how does it affect the outcome of the transaction

When trading gold on the exchange, there are two types of commissions, the first is the spread, which is charged when opening a transaction, and the second is the swap, which is charged when the position is rolled over to the next day.

swap gold

That is, if you made a purchase of gold today, and close the transaction only tomorrow, then a certain amount will be debited from your account for transferring the position to the next day.

The amount of the charged swap directly depends on the amount of the transaction, the size of interest rates and the brokerage company through which you opened it.

If your trade is not closed on a weekend or holiday, you will still pay Swop for those days, even though the exchanges are closed.

Next, we will try to understand how large the swap is for the XAUUSD and how it affects the financial result of the transaction.

What is the gold swap rate at different brokerage companies?

Depending on the broker and the direction of the transaction, the swap amount also changes:  

№

    Name

   Short swap 

   Long swap

 

 Initial deposit

   US dollars
1

   Alpari

www.alpari.com
+21,74
-36,14
 10
2

   RoboForex

www.roboforex.org
-7,44
-13,30
10
3

  AMarkets

  www.amarkets.org
+5,80
-32,70
100
4

  Forex Club

  www.fxclub.org
-12,35
-2,02
200
Does not work with residents from the Russian Federation
5

  InstaForex Broker

http://instaforex.com/ru/

brokers gold
-21,82
-7,01
100
 

As you can see, gold swap rates aren't always negative. Some brokers charge a positive percentage on uncovered short positions. As a result, you earn additional profit with each new day. Therefore, gold can also be used in the Carry Trade .

Since the values ​​are presented in points, it is quite difficult to understand at first glance how large the commission amount for transferring an order is.

For a better understanding, let's try to convert points into percentages taking into account the current price of gold.

One broker offers a swap rate of 13.3 pips per lot, or 100 ounces, for the XAUUSD pair. Today's gold price is $2,023 per troy ounce, or $202,300 per lot

It’s easy to calculate the approximate percentage = 13.3 / 202300 x 100% = 0.0066% per day or 0.0066% x 365 = 2.4% per annum.

What impact does the swap fee have on the outcome of a transaction?

Here, everything depends primarily on how strong the price change will be during the existence of the transaction.

For example, you bought 1 lot of gold, the price rose by $45 in a month and your profit was 45 x 100 = $4,500.

At the same time, you paid a swap of 30 x 13.3 = $399 and a gold spread of $30 when opening the position. As a result, your net profit was:

4500 – 399 – 30 = 4071 US dollars.

Here is an example of one of the purchase transactions, with a volume of 2 lots:

swap gold

As you can see, the purchase was quite successful and the profit was 20 times higher than the commission charged.

In conclusion, it's worth noting that the swap size for gold is so minimal that it doesn't significantly impact the outcome of the trade. What's far more important is that the price moves in your chosen direction and generates a profit.

Basics of gold trading on the exchange - https://time-forex.com/vopros/pokupka-zolota-na-birzhe

Important Points When Trading Precious Metals - https://time-forex.com/info/lot-zolota

 

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