Bullion Terms

Bullion Terms

Ask Price Buy price. The price a buyer is willing to pay for a product.

Bid Price The price a seller is willing to accept for a product.
Bullion Bullion usually refer to gold, silver, or other precious metals in the form of bars, ingots, or specialized coins.
Bull Market A upward price trend or ‘uptrend’ over time.
Bear Market A downward price trend or ‘downtrend’ over time.

CME Group Inc. the world’s leading and most diverse derivatives marketplace with exchanges that offer the widest range of global benchmark products across all major asset classes, including derivatives based on interest rates, foreign exchange, metals and weather, as well as clearing services for exchange traded and over-the-counter products.
Commodity Any product approved and designated for trading or clearing in accordance with the rules of an exchange. Silver, gold, platinum, and palladium metals are all commodities.
Central Bank A government bank that is responsible for the establishment and maintenance of the nation’s fiscal and monetary policy, as well as for controlling interest rates and money supply.

Double Bottom Chart pattern that occurs when the underlying investment moves in a similar pattern to the letter “W”.
Double Top Chart pattern that occurs when the underlying investment moves in a similar pattern to the letter “M”.

Exchange An exchange is an open, organised marketplace for commodities, stocks, securities, derivatives and other financial instruments. A centralized market like the New York Stock Exchange.
EET Eastern European Time.

Fiat Currency Government issued money which is not backed by gold or silver.
Fundamentals The study of basic underlying economic factors which apply to the state of business.

Hedge An offsetting transaction designed to protect from or minimize the impact of unfavorable movements in the assets’ value.

Inflation The decrease of purchasing power of a given currency over time.

Liquidity How easy it is to sell or buy a specific product or the ease which a specific product can be converted into cash.
LBMA London Bullion Market Association.
London Fix Price This bullion pricing standard is set each day in London by the members of the LBMA. Gold price is set twice daily at 10:30 and 15:00 and silver price is set at 12:00 London time.
Limit order A limit order is an order to buy or sell a product at a specific price better than the market price.

Margin Margin is the amount of money that traders need to provide in order to start trading.
Margin Call The value of the trader’s account falls below required margin and is not enough to maintain open positions, trader is required to deposit funds.
Moving Average A calculation that takes the arithmetic mean of a given set of prices over the specific number of days in the past.
Market Value Market Value The price at which a product is traded.

OTC Over-The-Counter. A decentralized market which traded via a broker-dealer network.

Precious Metals A rare metal with the high economic value.

Resistance the upper level which prevent the price from rising further.
Rollover Rollover is the interest paid or earned for holding an open position overnight. It is calculated based on the interest rate differential between the two currencies.

Spot price The market price of a product determined by the latest trades on over-the-counter market.
Spread The difference between the buy price and the sell price of a product.
Support The lower level which prevent the price from declining further.
Settlement Date The date on which a contract is scheduled for delivery and payment. Spot settlement in the bullion market is two days after the transaction is struck.
Stop order A Stop order is an instruction to buy or sell a product at a specific price worse than the market price. A Stop order is not guaranteed a specific execution price and may execute significantly away from its stop price.
Server time Time zone which the server is using.

Trailing stop A trailing stop is created by setting up a stop order that ‘trails’ your position by a specific number of points. This is useful for ensuring that you lock in profits if the market moves in your favour.
Troy ounce A unit of measurement for weight. In the field of precious metals, one troy ounce is equivalent to 31.1035 gms.

US Dollar Index the value of the US dollar relative to a basket of world currencies, which include the Euro (EUR), Japanese yen (JPY), Canadian dollar (CAD), British pound (GBP), Swedish krona (SEK), and Swiss franc (CHF).

XAU The internationally accepted code for gold.
XAG The internationally accepted code for silver.

Yield A measure of the annual return on an investment expressed as a percentage.