Alpari launches Gold denominated accounts
I think it’s a very very smart move by Alpari, I’m not sure how popular it would be but unquestionably it’s a
I think it’s a very very smart move by Alpari, I’m not sure how popular it would be but unquestionably it’s a very attractive offering for some clients who fear that all currencies worldwide may become unstable.
Alpari (UK) has just launched the highly anticipated Gold accounts*. All our Gold account clients will have their account balance, profit/loss and other information measured in gold. Trading on a Gold account is the same as on Alpari (UK) currency accounts.
Join the iFX EXPO Asia and discover your gateway to the Asian Markets
The base currency of a Gold account is the standardized unit GLD. The pair GLDUSD is defined as 0.001 of the spot price of one ounce of gold against the US dollar (the instrument XAUUSD). Adjacent to the US dollar or euro and reflecting the market price of gold, GLD is an easy-to-calculate unit.
Deposits to a Gold account are converted to GLD at which point traders have access to the full range of options available on standard currency-based accounts: trading currencies, CFDs and precious metals including gold (XAUUSD).
Suggested articles
Safle’s CEO Abhimanyu Kashyap on Creating Frictionless ExperiencesGo to article >>
Trading example:
A client wants to trade 1 lot in USDCHF. Assuming a leverage rate of 1:100, Alpari (UK) will require USD1,000 as margin. In our example the current XAUUSD rate is 1,364.90 which means the GLDUSD rate will be 1.3649 (1,364.90 x 0.001, with the 0.001 being a thousandth of the spot price of one ounce of gold against the US dollar).
USD1,000 margin requirement : 1.36490 = 732.65 GLD units.
*Available to Micro and Classic account holders.
Leave a Reply
excellent idea but relatively impractical, which type of trader is in mind? retailers, they dont really hold positions long term. so businesses good for them especially those directly involved in gold, but point is that for physical withdrawal a change in amount is required.
although the market does need some innovation, if theres adequate resources for clients then the business community will be happy to trade this, especially hedgers and long term trader.
send your withdrawal form and you get a package of gold bars sent to your home address!
The previous post by ‘Adil Siddiqui’ should be completely disregarded given his prior stint of employment at Alpari (UK). His views are most probably biased at best and sinister in their intent at worst….
I believe it is smart for “country-less” people (i.e. off-shore bank account) where the base currency of the citizenship country is not really relevant.
But this targets rather large accounts… which may not need to use a retail broker actually to buy/sell on interbank markets.
Just my 2 cents
what is sinister about the post, freedom of speech and logic ‘The previous post by ‘Adil Siddiqui’ should be completely disregarded given his prior stint of employment at Alpari (UK). His views are most probably biased at best and sinister in their intent at worst…’
this is a discussion forum
Joan thats a fair point, but ultimately if a fund manager uses Belize most transactions will have to be realised back to dollar, like wise for someone in jersey in GBP.