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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$18,000 per tael troy

Selling Price: HK$18,435 per tael troy


Calculation of profit or loss:
HK$ (18,435 - 18,000) x 100 taels x 3 lots
= HK$130,500-
(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$ 1,970 on May 2 and then offset them at US$ 1,940 on May 7.


Calculation of profit or loss:
US$ (1,970 - 1,940) x 100 Ounces x 3 lots x 7.8
= HK$70,200-
(Interest expense, storage rental and commission are not calculated in this example.)