STOCK INDEX & GOLD LOCO LONDON
Transaction Formula :
[(Selling Price – Buying Price) x Contract Size x n Lot] – [(Facility Fee + VAT) x n lot]
Description:
- Selling Price - Buying Price is price reduction of close positions (bought/ sold) to open positions (bought/sold).
- Contract Size (total contract value) is US$ 5 per point for rolling contract periodicly of stock indexes and 100 Troy Ounce for daily rolling contract of Loco London Gold and 100.000 for daily rolling contract of currency spot
- n Lot, n is the amount of lots had been traded.
- Facility Fee is US$ 15 per lot per side (bought or sold). So the total cost of a facility fee is US$ 30 for lot settled.
- VAT (Value Added Tax) is 11% of the facility fee, or US$1.65/lot. Total VAT is US$ 3.3 for lot settled.
If the settlement of transaction carried out over one day (overnight) then each of lot transaction will be charged the cost of hospitalization / roll over (can be seen on the Trade Table)
Example 1 (HKK5U)
An investor trade HKK5U_BBJ at 18,000 level as much as 2 lots (Open Buy 2 lots), he predicted that prices will move higher. In the afternoon trading session the price moves up to 18,400 level and the liquidating all the position at 18,300 level (Close Sell 2 lots).
Calculation:
• Open Buy (a.k.a New Buy) 2 lots at 18,000
• Close Sell (a.k.a Liquid Sell) 2 lots at 18,300
Based on the formula:
P/L = [(18300-18000) pts x US$5 x 2 lots] - [(US30 + US$3.3) x 2 lots]
P/L = (300 pts x US$10) - US$66.6
P/L = US$2,933.4
Net profit for customers is US$2,933.4
Note: P = Profit, L = Loss
Example 2 (JPK5U)
An investor estimate the Nikkei 225 index will fall, then at that point investors immediately took the selling positions at the level of 14,850 points as much as 2 lots. Two days later, the investor closed the positions when the price stood at 14,650 points.
Calculation:
P/L = [(Selling Price - Buying Price) x Contract Size x n Lot] - [(Fee US$30 + VAT) x n Lot]
P/L = [(14,850-14,650) x US$ 5 x 2 lots] - [(US$ 30 + US$ 3.3) x 2 lots]
P/L = (200 points x $ 5 x 2 lots) - (US$ 33.3 x 2 lots) = US$2,000 - US$66.6
P/L = US$1,933.4 (gross profit)
Due to the transaction completed over one day (overnight), it will be applied roll-over fee as much as US$8 (US$2 x 2 lots x 2 nights), thus net profit is US$ 1,933.4 - US$8 = US$1,925.4
Example 3 (XULF)
A customer predicts the Loco London gold price
in the positive trend and he plans to take positions XULF contract. When taking a position, he got the price at the level of $1,175.30 / troy ounce as much as 2 lots. However, the price had dropped to as low as $1,160.65 / troy ounce, and he had to liquidate the position as much as 1 lot at $1,165.30 / troy ounce. The rest (Open Buy) that he had liquidated the next day when the price stood at $1,190.20 / troy ounce.
Calculation:
The first day
P/L = [US$(1165.30 - 1175.30) / troy ounce x 100 troy ounce x 1 lot] - [US$(30 + 3.3) x 1 lot]
P/L = - US$1000 - US$33.3 = - US$1,033.3
Day two
P/L = [US$(1190.20 to 1175.30) / troy ounce troy ounce x 100 x 1 lot] - [US$ (30 + 3.3) x 1 lot]
P/L = US$1,490 - US$33.3 = US$1,456.7
Because it traded more than 1 (one) day of the roll-over fee charged:
US$5 x 1 lot x 1 night = US$5
Net profit for clients is -US$1,033.3 + US$1,456.7 - US$ 5 = US$418.4
CODE & TYPE CONTRACT
|
CONTRACT CODE |
BASIC |
CATEGORYRATES |
TYPE OF CONTRACT |
|
GU1010_BBJ |
GBP/USD |
DIRECT |
Scroll Daily Spot Price Contracts Great Britain Pound Sterling (GBP) against US Dollar (USD) |
|
EU1010_BBJ |
EUR/USD |
DIRECT |
Rolling Contract Daily Spot Price Euro (EUR) against US Dolar (USD) |
|
AU1010_BBJ |
AUD/USD |
DIRECT |
Rolling Contract Daily Spot Price Australian Dollar (AUD) against US Dolar (USD) |
|
UC1010_BBJ |
USD/CHF |
INDIRECT |
Rolling Contract Daily Spot Price US Dollar (USD) against Swiss Franc (CHF) |
|
UJ1010_BBJ |
USD/JPY |
INDIRECT |
Rolling Contract Daily Spot Price US Dollar (USD) against Japanese Yen (JPY) |
ILLUSTRATION OF CALCULATION OF TRANSACTION
Calculation of Profit or Loss (P / L):
For DIRECT RATES:
P / L = (Selling Price-Purchase Price) x Contract Size x Number of Lots
For INDIRECT RATES:
P / L = (Selling Price-Purchase Price) / Liquidation Price x Contract Size x Number of Lots
)A client predicts the spot price of the Euro will rise, then he took a position at the price of 1.3530 EU1010_BBJ buy as much as 2 lots. Not long after liquidating customer positions opening at 1.3540 price as much as 2 lots (clear position). The gain or loss of customers is:
P/L = (Selling Price-Purchase Price) x Contract Size x n Lot
P/L = (1.3540-1.3530) x 100.000 x 2
P/L = 0,0010 x 100.000 x 2
P/L = USD200
Customer gains of USD200 (not charged commissions and transaction taxes).
However, if liquidated at the price of 1.3525 then the calculation is:
P/L = (1.3525-1.3530) x 100.000 x 2
P/L = -0,0005 x 100.000 x 2
P/L = -USD100
Customers get a loss of USD100 (not charged commissions and transaction taxes).
)A client predicts the spot price of USD / JPY will fall, and then he took a position selling UJ1010_BBJ contract price of 102.20 on 1 lot. A few hours later the customer liquidate the 102.12 price. Then the calculation is as follows:
P/L = (102.20-102.12)/102.12 x 100.000 x 1
P/L = 0.0007834 x 100.000 x 1
P/L = USD78.34
Customers benefit for USD78.34 ( not charged commissions and transaction taxes).
But if the spot price of USD / JPY price actually rose to 102.27 and liquidated at the same price, then:
P/L = (102.20-102.27)/102.27 x 100.000 x 1
P/L = -0.0006844 x 100.000 x 1
P/L = -USD68.44
Customers get a loss of USD68.44 (not charged commissions and transaction taxes).
