Hi anyone that can help. So ive been using the cfd platform and I am doing really well. Trading gold, the market closed at 10pm and then everything just flipped round.
Was selling gold short at 1609 it reached about 1630 (was about £100k down) then i noticed while the point was decreasing - the amount i am losing should be less but instead it was increasing🤷♂️ i dont understand.
Then i did this trade and had to jump out at a £23k loss! image|281x500
I tried to ‘short’ at 1630 it drops down and Im like hooray i should be up but in actual fact i am down with a negative balance🤷♂️ What is going on. Since the market closed at 10pm everything has just flipped.
not a clue what is going on… the gold spread is $7-20 more. this glitch is terrible and affecting so many people. you just lost 23k, that is extremely unfair.
My issue is not the spread. When you short a stock your hoping to make a profit based on the price falling. Which is exactly what i did several times when trying short gold. But its not shorting, I am at a loss even though i am way below the
line. I should be in profit, can you explain this.
First of all I have no idea how it even managed to get to 6130 because it never jumped that high as you can clearly see on chart. Even so, I should be up money as i short it at 6130 and now it is 1625. For the whole time yeaterday when i did
it this way before the market closed i was making money and then it flipped, which doesnt make sense.
@moneymakinggold The reason you’re at a loss on the screenshot is exactly because of the spread -> difference between SELL & BUY price.
Sure, you see the red line at $1,630.59 - that’s the SELL price visible on the left side of the gold icon/logo. Now, the SELL price is $1,625.71.
However, the concept short selling is this - you borrow something you don’t have -> sell it on the open market -> make the cash from the sell now -> buy it back a later point for a cheaper price in to return to original lender -> profit from the difference.
Example:
You borrow an from me & sell it to someone else for $1. However, you still owe me an . prices drop to $0.50 & you decide your happy with the profit from the difference. You go to the markets & buy one for $0.50 which you return to me. You get to keep the difference of $0.50.
This is a very basic example of what short selling is. I’m explaining this because the last things to do before closing a position is buying back the instrument in order to return it to original lender. Thus, you have to purchase Gold for the BUY price which you can see on the screenshot is $1,636.25, above your sell price of $1,630.59.
($1,630.59 - $1,636.2) x 5000 = -$28,050 whici is approx -£24,000.
Very impressed by your understanding of it all. Its crazy how complex they make it. Reading over that and i still have no idea. What i do know though is every other stock seems to work normally when buying and selling so im just going to leave
gold. Which is a shame because i made the bulk of money in that. Since the market closed everything just went weird.
Thanks again though, managed to make some on the nasdaq. Are there any other stocks where you can buy more than the set quantity?
from me & sell it to someone else for $1. However, you still owe me an 