Can I Profit When Commodity Prices Fall? (Long vs Short)

Yes. Commodities on Pluang lets you open a Short position, which profits when the price of gold (XAUUSD), silver (XAGUSD) or Brent crude (UKOUSD) falls, as well as a Long position, which profits when the price rises. This is possible because Commodities is a leveraged derivative on the commodity's price: you never own the physical commodity, so you don't need to hold any gold, silver or oil before you open a Short. Your profit or loss depends only on how far the price moves from your entry price, multiplied by the size of your position. The two directions carry different risks. A Long loses when the price falls. A Short loses when the price rises, and a price has no upper limit, so the potential loss on a Short is theoretically unlimited. Either way, leverage magnifies every price move, and if your margin level falls to 50%, Pluang closes your worst-performing position in full, then checks your margin level again; if it's still at 50% or below, it closes the next one.

• Long: Choose Buy (Long) when you place your order. It profits when the price rises. Gross P&L = (closing price − entry price) × lot size × number of lots.
• Short: Choose Sell (Short) when you place your order. It profits when the price falls. Gross P&L = (entry price − closing price) × lot size × number of lots.
• Lot size: 1 lot is 1 troy ounce for XAUUSD, 10 troy ounces for XAGUSD and 10 barrels for UKOUSD.
• Gross vs net: The formulas above give gross P&L. Your net P&L also deducts the JFX & KBI fee, the VAT on it and any swap charges, and adds any swap credits.

Illustrative example: 1 lot of XAUUSD opened at US$4,300 (a reference price, not a live quote; gross P&L before fees and swap)

At 100x leverage, the margin for this position is US$43, so a US$20 price move gains or loses almost half of that margin, depending on your direction.

Related questions:

Q: Do I need to own gold before I can Short it?
No. Commodities is a leveraged derivative on the price of gold, silver or Brent crude, so you never own or receive the physical commodity, whether you go Long or Short. To go Short, you simply choose Sell (Short) when you place your order, and your profit or loss comes only from the price difference between opening and closing the position. Realized profit or loss is booked in US dollars to your USD Margin (Commodities) wallet.

Q: Why is a Short position riskier than a Long?
Because a price can keep rising with no upper limit, the potential loss on a Short is theoretically unlimited. Leverage keeps both directions risky, though: a margin call comes at an 80% margin level and a second warning at 70%. At 50%, Pluang closes your worst-performing position in full, then checks your margin level again. If it's still at 50% or below, it closes the next one. Commodities is high-risk leveraged trading, not a savings or long-term investment product.

Q: Can I hold a Long and a Short on the same commodity at the same time?
No. Commodities keeps one net position per instrument, so you can't hold a Long and a Short on the same commodity at once. An order in the opposite direction offsets your existing position, reducing or closing it, rather than opening a separate one. Take Profit and Stop Loss are coming. For now, you can place a Limit or Stop order in the opposite direction to exit at a price you choose. It fills in full or not at all, so in a fast market it may not fill and shows as Failed. You can still hold positions on different instruments, such as a Long on XAUUSD and a Short on UKOUSD.

Q: Is the swap the same for a Long and a Short?
Not necessarily. Swap applies to any position still open at the daily rollover at 05.00 WIB (04.00 WIB during US Daylight Saving Time). The rate is shown in pips per lot, and whether it's a debit or a credit depends on your direction (Long or Short) and the rate, so a Long and a Short on the same commodity can be treated differently. Swap charges carry 11% VAT, and a swap credit counts as a gain you report for tax yourself.