this is kinda neat - leveraged gold trading

[Martin]

I've been using this to play around with forex for a while, and just today I noticed that they also have the ability to trade gold and silver using the same platform.

I don't know what regular retail commodities trading is like, but this one seems cool, since you can go either long or short and use up to 50:1 leverage.

So let's say you have $5k set aside for gold speculation and at 10am today (when gold was 890) you went short using 50:1 leverage. If you close that right now (2:42pm) at 878 (1.37% change), that's a profit of around $3500.

Anyway, I just think its kinda funny you can make a 70% return in 5hours, though that's risky to an absurd degree - at 50-1, your position is automatically closed if the price swings 1% away from your direction and you lose half your money.

 

[DaveSimmons]

Originally posted by: Martin
Anyway, I just think its kinda funny you can make a 70% return in 5hours, though that's risky to an absurd degree - at 50-1, your position is automatically closed if the price swings 1% away from your direction and you lose half your money.

This is the point that most people ignore when dabbling in forex and other gambling. You can make a 10,000:1 profit in one day in Vegas too, but the odds are very much against you.

 

[FoBoT]

isn't that how the great depression got started

 

[JEDI]

Originally posted by: Martin
I've been using this to play around with forex for a while, and just today I noticed that they also have the ability to trade gold and silver using the same platform.

I don't know what regular retail commodities trading is like, but this one seems cool, since you can go either long or short and use up to 50:1 leverage.

So let's say you have $5k set aside for gold speculation and at 10am today (when gold was 890) you went short using 50:1 leverage. If you close that right now (2:42pm) at 878 (1.37% change), that's a profit of around $3500.

Anyway, I just think its kinda funny you can make a 70% return in 5hours, though that's risky to an absurd degree - at 50-1, your position is automatically closed if the price swings 1% away from your direction and you lose half your money.

wait.. they cap the downside?

hm.. this needs more investigating

 

[ElFenix]

Originally posted by: FoBoT
isn't that how the great depression got started

no, they cut you off once you've lost half what you started with. you're only allowed to play with money you have.

 

[Martin]

Originally posted by: DaveSimmons

Originally posted by: Martin
Anyway, I just think its kinda funny you can make a 70% return in 5hours, though that's risky to an absurd degree - at 50-1, your position is automatically closed if the price swings 1% away from your direction and you lose half your money.

This is the point that most people ignore when dabbling in forex and other gambling. You can make a 10,000:1 profit in one day in Vegas too, but the odds are very much against you.

Well, its much higher than regular investing, but its no Vegas. Not only are the odds better, but the house doesn't always win here