CFD no more, LCP

As you see, I have been trading on FXCM and today I log into IG markets and realised that CFD for commodities is no longer available here.

They introduced new product = LCP

“Leveraged Commodity Product” or “LCP” means an OTC commodity contract on a margin basis (other than a commodity futures contract) whereby a person undertakes, as determined by the terms and conditions of the contract, to pay an amount of money determined or to be determined by reference to the change in value of a commodity over a specified period of time;

The new contract size is now:
Gold
1. Standard Contract = 100 troy oz / margin requirement USD1700
2. SGD denominated contract = SGD$10 (SGD1 x min 10 contracts) / margin requirement SGD$170 (SGD17 x min 10 contracts)

Silver
1. Standard Contract = 5000 troy oz / margin requirement USD3000
2. SGD denominated Contract = SGD$5 (SGD1 x min 5 contracts) / margin requirement SGD$300 (SGD60 x min 5 contracts)

Light Crude Oil (US)
1. Standard Contract = USD 10 per full point / margin requirement USD1500
2. SGD denominated Contract = SGD$5 (SGD1 x min 5 contracts) / margin requirement SGD$750 (SGD150 x min 5 contracts)

FXCM

Continue my trial on FXCM... I am working on application, and I am still comfortable with their platform.
Be it a web-based, or application based, the appearance is very similar.

I placed a market order this morning to Long on DJIA (US30).
And trying the trailing stop for first time.

FXCM

I have been searching for broker with MT4, great mobile app...
Since I have been using Trade Interceptor, I am trying out FXCM... this post is not promoting any broker, but just a snapshot of how does FXCM looks.

This is the screen shot from their desktop application.

Default Charting, maximize GBP/USD:

Dealing Rates - Advanced:

Dealing Rates - Simple:

I still prefer the "simple dealing rates".. may be because I'm used to it.

Some terminology on my Portfolio (Open Positions) is new...
The GBP/USD short position is opened last night...
what is "Roll"? -0.20?

Overall the color of the trading station is fine.

DJIA on 11-Feb-2011

If DJIA cannot break above 12254, and with pressure from the fundementals, Ayumi reckon DJIA to correct tonight, if not tonight, current price action will be narrow until next week, for Long trades, can look for opportunity to:
Long at 12020, SL 11980, TG1 12300, TG2 12400 (2 weeks).

12020 is also the neckline for the head and shoulder pattern in making, if in two weeks time DJIA cannot break above recent high of 12254, it shows that the bullish momentum has slowed down and a more healthy correction need to take place.

If DJIA break below 12020, expect support at 11800 for DJIA rebound.

I am learning the Futures / Pre-Market price vs DJIA, and it seems that most of the time they are ±50 pts different... How do we get the best entry?

Gold Trading and Contract Specifications

Average Day Range for Gold = $13.

little tutorial on Gold Futures:
Product Symbol: GC
Venue: CME Globex, CME ClearPort, Open Outcry (New York)

Contract Size = 100 troy ounces
Min Tick Size = 0.10 per troy ounce
Contract / Tick = $10
1 full point correspondent to = $100

Example: Short Gold Futures Profit
Gold Price @ 1,400 USD, Short
When Gold is trading at 1,399.90 USD = +$10.00
When Gold is trading at 1,399.00 USD = +$100.00

Example: Short Gold Futures Trade
You decide to go short one near-month Comex Gold Futures contract at the price of USD 1400.00/oz. Since each Gold futures contract represents 100 troy ounces of gold, the value of the contract is USD 140,000. To enter the short futures position, you have to put up an initial margin of USD 7,000.

A week later (or in our case, a day later), the price of gold falls and correspondingly, the price of Comex Gold futures drops to USD 1380.00 per troy ounce. Each contract is now worth only USD 138,000. So by closing out your futures position now, you can exit your short position in Gold Futures with a profit of USD 2,000.

Sell 100 troy ounce of Gold @ 1,400 per troy ounce = USD 140,000
Buy 100 troy ounce of Gold @ 1,380 per troy ounce = USD 138,000
Investment (Initial Margin*) = USD 7,000
* Initial margin requirement, we are taking GC at 5% now, my preferred broker offer 3%
Profit = USD 2,000
ROI = 28%

In our case, if we convert this trade to our trading P/L log... Sell $1415 - Buy $1382 = +$33
Risk : Reward ratio = 1 : 4
$3,300 / $ 7,000 = 47% ROI
Congratulations.

*1 troy ounce = 31.1034768 grams.
1 troy ounce = 120 carats

Disclaimer: Margin trading involves Risk, only take calculated risk and do not let greed overtake you.

Related Post:
Gold Futures and Silver Futures
Gold Futures explained (Video)
The Options Guide
Gold on 5th Jan

Comment from Mentor...

Related Post: Reflection

FX Brokers - Singapore

Holders of Capital Markets Services Licence - Leveraged Foreign Exchange Trading
(Total : 19)

Source: Monetary Authority of Singapore

Institution Name

1. CITIGROUP GLOBAL MARKETS SINGAPORE PTE. LTD.
2. CITY INDEX ASIA PTE. LTD.
3. CMC MARKETS SINGAPORE PTE LTD
4. CUSTOM HOUSE CURRENCY EXCHANGE (SINGAPORE) PTE. LIMITED
5. DBS VICKERS SECURITIES (SINGAPORE) PTE LTD
6. GFT GLOBAL MARKETS ASIA PTE LTD
7. GOLDMAN SACHS (SINGAPORE) PTE.
8. G.K. GOH FINANCIAL SERVICES (S) PTE. LTD.
9. IG ASIA PTE LTD
10. KIM ENG SECURITIES PTE. LTD.
11. MF GLOBAL SINGAPORE PTE. LIMITED
12. MORGAN STANLEY ASIA (SINGAPORE) PTE.
13. OANDA Asia Pacific Pte. Ltd.
14. OCBC SECURITIES PRIVATE LIMITED
15. ONG FIRST TRADITION PTE LTD
16. PHILLIP FUTURES PTE LTD
17. SAXO CAPITAL MARKETS PTE. LTD.
18. TRAVELEX GLOBAL FINANCIAL SERVICES (SINGAPORE) PTE. LTD.
19. UOB BULLION AND FUTURES LIMITED

Details and Address...