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.
 
Sell Price: US$ 22.30 per troy ounce
 
Buy Price: US$ 22.20 per troy ounce
 
Contract Value: 5,000 troy ounce
 
Calculation of Profit and Loss: (22.30 - 22.20) X 5,000 X 3 = US$ 1,500
 
(The above listed trading details are for reference only and are subject to changes.)
 
 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.
 
Closing Price: US$1 550 per troy ounce
 
Interest Rate: + 4.0% per annum
 
Contract Value: 100 ounces
 
Interest Earned: (US$1550 X 100) X 4.0% / 360 X 30 X 3 = US$ 1550
 
(The above listed trading details are for reference only and are subject to changes.)
 
 
 Hong Hong Gold Market

99 Tael Gold Contract

Fineness

99

Trading lot:

100 taels

Price Indication

HK$ per tael

Minimum Price Fluctation

HK$ 0.5 per tael

Premium Calculation

HK$ per 100 taels

Premium Fixing

Monday to Friday: 11:00

Settlement Price

Monday to Friday
AM:11:30
PM:16:30

HKD Kilo Gold Contract

Fineness

999.9

Trading lot:

5 kilograms

Price Indication

HK$ per gram

Minimum Price Fluctation

HK$ 0.01 per gram

Premium Calculation

HK$ per 5 kilograms

Premium Fixing

Monday to Friday: 11:15

Settlement Price

Monday to Friday
AM:11:30
PM:16:30

 
 Settlement Price

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

Premium is determined on each trading day.

At GMT 03:00 (99 tael) on each trading day from Monday to Friday
At GMT 03:15 (999.9 gram) on each trading day from Monday to Friday

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
Premium indication HKD/ 5 kilograms

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) :

Level

Daily interest

Annualized interest

1

0.03%

11%

2

0.04%

15%

3

0.05%

18%

4

0.06%

22%

5

0.07% <

26%

 
 Gold Price Conversion Formula

HK Dollar per tael:

= US Dollar per ounce * Telegraghic transfer (T T) Rate 1.1913

HK Dollar per gram:

= US Dollar per ounce * TT rate / 31.1035

HK Dollar per gram:

= HK Dollar per tael / 37.429 * (0.9999 / 0.99)

 
 Weight Conversion
1 tael = 37.429 grammes = 1.20337 troy ounces
 
 Profit Calculation Hong Hong Gold Formula: (99 Taels Gold)
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.
 
Sell Price: HK$ 13955per tael
 
Buy Price: HK$1 3855per tael
 
Contract Value: 100 taels
 
Calculation of Profit and Loss: (HK$13955 -1 3855) X 100 X 3 = HK$30,000 / 7.8TT Rate = US $3,846.15
 
(The above listed trading details are for reference only and are subject to changes.)
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