Commodity Examples
- GOLD
Assume that; we buy 1000 ounce gold on 1800$. Then the gold price increases and we sell it on 1815$. We can calculate our profit by multiplying amount and difference between selling price and buying price. To illustrate;
1000*(1815-1800)= 15000$
If the ounce price decreases we would have loss. Because we bought on a higher price and the ounce price is lower now. For example; we bought 1000 ounce gold on 1800$ and then the price decreased to 1785$. In this situation we have loss. We can calculate our loss by the same Formula. If the ounce price decreases our loss would be;
1000*(1785-1800)=-15000$
We explained profit and loss when we buy the gold. We also should look at profit and loss situation when we sell the gold.
We accept that; we sold 1000 ounce gold on 1750$. Then gold price increases to 1800$. Our loss will be;
1000*(1750-1800)=50000$
But if the gold price decreases to 1700$, our profit would be;
1000*(1750-1700)=50000$
- SILVER
Imagine that; we buy a lot silver on 40.150$. If the silver price increase we would have profit and if the price decrease we would have loss. Assume that; the silver price increases to 40.300. we can calculate our profit by this Formula;
One lot: 5000 ounce
5000*(40.300-40.150)= 750$ our profit
If the silver price decrease to 39.850$ our loss would be;
5000*(39.850-40.150)=300$ our loss
If we sell the silver on 40.150$ and price increases to 40.300$ our loss would be;
5000*(40.150-40.300)=750$ our loss
ıf the silver price decreases to 39.850 our profit would be;
5000*(40.150-39.850)=300 our profit
- PETROLIUM
Assume that; we buy one lot oil on 75.50$ and the price increases to 76.50$. we can calculate our profit by this Formula;
1000*(76.50-75.50)=1000$ is our profit.
If the price decreases to 75.00$ our loss would be;
1000*(75.50-75.00)=500$
Imagine that; we sell one lot oil on 76.00$ and the oil price increases to 77.00$. we can calculate our loss by this Formula;
1000*(76.00-77.00)=1000$
If the oil price decreases to 74.50$ our profit would be;
1000*(76.00-74.50)=1500$
