Your Offshore Guide
Offshore Guide
Gold Trading HK
GLOSSARY RELATING TO GOLD
Arbitrage: Simultaneous buying and selling of gold in two separate markets in order to exploit price differentials.
Asked Price: Price at which gold is offered for sale.
Assay: To analyse and determine the fineness of gold.
Backwardation: A situation where spot gold price is higher than the gold futures price.
Bear: An individual who perceives that the gold price will fall below the spot level in the future.
Bid Price: Price at which an individual is prepared to pay for buying gold.
Bull: An individual who perceives that the gold price will rise above the spot level in the future.
Bullion: Gold in non-fabricated form.
Bullion Coins: Gold coins minted in large quantities with low (3-5%) selling premium.
Buy at Best: To buy the required quantity of gold at prevailing market price.
Call Option: Option giving the buyer the right but not the obligation to purchase gold at the stated striking price on or before expiration date.
Carat: Unit of the fineness of gold. For example, pure gold is 24 carats and 18 carat gold alloy contains 75% pure gold.
Closing Out :Action to close a long or short position.
Contango: A situation where spot gold price is lower than the gold futures price.
Collateral: Gold pledged to secure a loan based on the spot price and margin arrangements between the parties concerned.
Commission House: An institution which buys and sells gold futures contracts for accounts of their customers.
Consignment:Gold delivered in advance by a supplier to an agent with the intention to facilitate and increase sales in an overseas market.
Deferred Settlement: Gold purchased or sold to be settled at a later date agreed between the buyer and seller.
Exchange for Physical transfers(EFP): A situation where the buyer of spot gold to the seller an equivalent number of long gold futures contracts, or vice versa, at an agreed price.
Fineness: Percentage of pure gold in an alloy expressed as parts per thousand by weight.
Forward Contract: Contract for settlement of a gold deal at any date later than spot value date.
Forward Forward: Simultaneous purchase and sale of gold for different maturity dates in the forward market.
Gold Certificate: Document certifying the ownership of gold held at an authorized or recognized depository.
Gold Futures: Contracts for the purchase or sale of gold for future delivery on a gold futures exchange.
Gold Parity: Officially declared amount of gold to which the currency of a country is equivalent.
Good Delivery: Gold bar which conforms to the Bar specification given by the London Bullion Market Association (LBMA) which is internationally recognized.
Gross Weight: The actual weight of a gold bar or coin.
Hedge: Taking a position on a gold futures exchange or on the forward market against a deal concluded on the spot market to protect a profit position.
Hoarding: Accumulation of gold in anticipation of greater value in the future.
Legal Tender: Gold coins which the central bank of a country declares to be acceptable for any payment at their face value.
Limit Order: Order placed by a customer with a specified limit on either price or time of execution, or both.
Liquidity: Depth of the market and its ability to absorb large buying or selling orders without wide price fluctuations.
London Fixing: Setting of the spot gold price which is held at 10:30 hours and 15:00 hours on each working day in the City of London by the five fixing members of the London Bullion Market Association (LBMA).
Margin: The amount of money or collateral deposited with a broker, bank or bullion house to insure against loss on an open position.
Margin Call: Call for extra deposit as maintenance margin when market moves against an open position held by the customer.
Market Maker: Banks, bullion houses or financial institutions making consistent two-way buy-sell prices for gold.
Medal: Small gold bar stamped or cast in the shape of a coin having no legal monetary value.
One Cancel The Other Orders (OCO): Order placed by the customer to buy and to sell at specified prices. The saleorder will be automatically cancelled when the buy order is filled and vice versa.
Open Interest: Total of all open positions on a futures exchange.
Put Option: Option giving buyer the right but not the obligation to sell gold at the stated striking price on or before the expiration date.
Short Sale: Sale of gold which the seller does not own in anticipation of a lower level of price in the future.
Stop Loss Order: Order placed by customer to buy or sell gold at the market if the specified price is reached.
Arbitrage: Simultaneous buying and selling of gold in two separate markets in order to exploit price differentials.
Asked Price: Price at which gold is offered for sale.
Assay: To analyse and determine the fineness of gold.
Backwardation: A situation where spot gold price is higher than the gold futures price.
Bear: An individual who perceives that the gold price will fall below the spot level in the future.
Bid Price: Price at which an individual is prepared to pay for buying gold.
Bull: An individual who perceives that the gold price will rise above the spot level in the future.
Bullion: Gold in non-fabricated form.
Bullion Coins: Gold coins minted in large quantities with low (3-5%) selling premium.
Buy at Best: To buy the required quantity of gold at prevailing market price.
Call Option: Option giving the buyer the right but not the obligation to purchase gold at the stated striking price on or before expiration date.
Carat: Unit of the fineness of gold. For example, pure gold is 24 carats and 18 carat gold alloy contains 75% pure gold.
Closing Out :Action to close a long or short position.
Contango: A situation where spot gold price is lower than the gold futures price.
Collateral: Gold pledged to secure a loan based on the spot price and margin arrangements between the parties concerned.
Commission House: An institution which buys and sells gold futures contracts for accounts of their customers.
Consignment:Gold delivered in advance by a supplier to an agent with the intention to facilitate and increase sales in an overseas market.
Deferred Settlement: Gold purchased or sold to be settled at a later date agreed between the buyer and seller.
Exchange for Physical transfers(EFP): A situation where the buyer of spot gold to the seller an equivalent number of long gold futures contracts, or vice versa, at an agreed price.
Fineness: Percentage of pure gold in an alloy expressed as parts per thousand by weight.
Forward Contract: Contract for settlement of a gold deal at any date later than spot value date.
Forward Forward: Simultaneous purchase and sale of gold for different maturity dates in the forward market.
Gold Certificate: Document certifying the ownership of gold held at an authorized or recognized depository.
Gold Futures: Contracts for the purchase or sale of gold for future delivery on a gold futures exchange.
Gold Parity: Officially declared amount of gold to which the currency of a country is equivalent.
Good Delivery: Gold bar which conforms to the Bar specification given by the London Bullion Market Association (LBMA) which is internationally recognized.
Gross Weight: The actual weight of a gold bar or coin.
Hedge: Taking a position on a gold futures exchange or on the forward market against a deal concluded on the spot market to protect a profit position.
Hoarding: Accumulation of gold in anticipation of greater value in the future.
Legal Tender: Gold coins which the central bank of a country declares to be acceptable for any payment at their face value.
Limit Order: Order placed by a customer with a specified limit on either price or time of execution, or both.
Liquidity: Depth of the market and its ability to absorb large buying or selling orders without wide price fluctuations.
London Fixing: Setting of the spot gold price which is held at 10:30 hours and 15:00 hours on each working day in the City of London by the five fixing members of the London Bullion Market Association (LBMA).
Margin: The amount of money or collateral deposited with a broker, bank or bullion house to insure against loss on an open position.
Margin Call: Call for extra deposit as maintenance margin when market moves against an open position held by the customer.
Market Maker: Banks, bullion houses or financial institutions making consistent two-way buy-sell prices for gold.
Medal: Small gold bar stamped or cast in the shape of a coin having no legal monetary value.
One Cancel The Other Orders (OCO): Order placed by the customer to buy and to sell at specified prices. The saleorder will be automatically cancelled when the buy order is filled and vice versa.
Open Interest: Total of all open positions on a futures exchange.
Put Option: Option giving buyer the right but not the obligation to sell gold at the stated striking price on or before the expiration date.
Short Sale: Sale of gold which the seller does not own in anticipation of a lower level of price in the future.
Stop Loss Order: Order placed by customer to buy or sell gold at the market if the specified price is reached.
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