Trading & Products
Commodities Example
The commodity market is a financial market that deals with raw materials. It’s also known as a ‘primary economic sector’. With GKFX (Cambodia) you can access the major commodity markets such as oil and precious metals. They are natural resources traded on exchanges around the world.
For more information on our commodity offerings.
Commodities Example
We will use gold, GOLD, as an example of how to trade commodities.
First determine the standard lot size for GOLD.
The standard lot size for GOLD is $1 per 0.1.
If you do not know the standard lot size you can look it up on our Market Information Sheets
The price of GOLD is measured in movements of 0.1. Since a tick is a unit used to measure the smallest possible price movement a product can make and since 0.1 is the smallest amount GOLD can move up or down we will refer to a movement of 0.1 in this example as a tick.
With GKFX (Cambodia) you can trade from 0.10 lots which represent the minimum lot size.
This is 0.10 lots x $1 per tick, which is $0.10 or 10 cents per tick.
If you bought GOLD with a lot size of $0.10 you would have made $0.10 for every tick the price of GOLD went up.
If you sold GOLD with a lot size of $0.10 you would have made $0.10 for every tick the price of GOLD went down.
If you bought GOLD at $1200.0 and the price moved up 5 ticks to $1200.5 you would have made a profit of 50 pence because $0.10 per tick x 5 ticks = $0.50, or 50 cents.
If you sold GOLD at $1200.0 and the price moved down 50 ticks to $1150 you would have made a profit of $5 because $0.10 per tick x 50 ticks = $5.
Alternatively if the prices in the examples moved in the opposite directions you would have lost the amounts shown above.
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