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Trading Examples

Calculation of profit or loss

Formula: (Selling Price - Buying Price) x Contract Unit x Contract Quantity +/- Interest Expense - Commission = Profit or Loss



Example 1

Transaction: A customer buys and sells 3 lot of Hong Kong Gold in the same day


Buying Price: HK$3,800 per tael troy

Selling Price: HK$3,825 per tael troy


Calculation of profit or loss:
HK$ (3,825 - 3,800) X 100 taels x 3
= HK$7,080 (Interest expense, storage rental and commission are not calculated in this example.)

Example 2

Transaction: A client of the head office sold 3 lot of Loco-London Gold at US$ 350 on May 2 and then offset them at US$ 340 on May 7.


Calculation of profit or loss:
US$ (350 - 340) X 100 OZ X 3 X 7.8
= HK$23,400- (Interest expense, storage rental and commission are not calculated in this example.)