Is Commodities Right for Me? What Are the Risks?

Commodities on Pluang is leveraged trading with a medium-to-high risk profile. It suits people who understand leverage, margin calls and liquidation, want to trade price moves in gold, silver or Brent crude in either direction (Long or Short), and can monitor their positions actively. It is a trading product, not savings. If you want to own gold for the long term, Pluang Emas is the better fit: you own spot digital gold, with no leverage and no swap. The main risk is leverage of up to 100x on gold (XAUUSD), 20x on silver (XAGUSD) and 50x on Brent crude (UKOUSD), so a small price move can mean a large gain or loss relative to your margin. At an 80% margin level you get a margin call, at 70% a second warning, and 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.

• Leverage magnifies gains and losses: Pluang sets the leverage for each instrument (you don't choose it) and may adjust it; the order page shows the current figure. Profit and loss are calculated on the full exposure (lot size × price), not on your margin. At an illustrative gold price of US$4,300 (not a live quote), 1 lot of XAUUSD has an exposure of US$4,300 and needs US$43 of margin at 100x, so a 1% move in gold equals ±100% of the margin used. The order page shows the exact Est. Margin Required, which can be slightly higher than this simple calculation.
• Margin levels: The margin level is calculated across all your Commodities positions in the USD Margin (Commodities) wallet (cross margin), so a loss on one instrument lowers it for all of them. At 80% you get a margin call, the first warning. At 70% you get a second warning, and new orders that add risk are blocked until your margin level is back above 80%. At 50%, liquidation starts.
• How fast it can happen (illustrative): Deposit US$100 and open 1 lot of gold Long at US$4,300, using about US$43.00 of margin. After about US$0.11 in opening fees, your balance is US$99.89, a margin level of about 232%. Ignoring swap and closing fees, the margin call comes at about US$4,234.51 (−1.52%), the second warning at about US$4,230.21 (−1.62%) and liquidation at about US$4,221.61 (−1.82%), a fall of less than 2%.
• Exiting at a price you choose: Commodities has Market, Limit and Stop orders, valid for the Day or GTC (Good till cancelled). 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 offsets your position. Orders fill in full or not at all, so in a fast market a Limit or Stop exit may not fill and shows as Failed. You still need to watch your margin level.
• Short positions: A Short profits when the price falls, but because a price can keep rising, the potential loss on a Short is theoretically unlimited.
• Swap over time: Swap is charged or credited at the daily rollover (05.00 WIB, or 04.00 WIB during US Daylight Saving Time), and gold and silver are charged three days at the Thursday rollover. When the swap is a charge, holding a position for weeks or months steadily eats into your result.
• Weekend close: The market is closed from Saturday morning to Monday morning WIB, and prices can move while it's closed.
• Separate from US Stocks: Losses in Commodities never affect USD Margin, the separate wallet for leveraged US Stocks.

Related questions:

Q: Is Commodities a good way to save in gold?
No. Commodities is a leveraged derivative for trading: you don't own any physical gold, positions held past the daily rollover are charged or credited swap, and leverage means a price move against you can quickly lead to a margin call or liquidation. For long-term gold savings, Pluang Emas is the product designed for that: you own spot digital gold, with no leverage and no swap.

Q: What happens if the price moves against my Commodities position?
Your margin level falls. It's your equity divided by your used margin, across all your Commodities positions. At 80% you get a margin call, the first warning, and you should add funds or reduce or close positions. At 70% you get a second warning, and new orders that add risk are blocked until your margin level is back above 80%. 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.

Q: Can I lose more than the money in my wallet?
It can happen. Liquidation is designed to stop losses before your balance turns negative. In a fast-moving market a loss can still be larger than your balance: the price can move past the liquidation level before your positions are closed, and the balance can turn negative. Keep your margin level well above 80%, and don't commit your whole balance as margin. If your balance turns negative, contact Pluang Care.

Q: Can I set an exit price in advance?
You can use a Limit or Stop order. Commodities has Market, Limit and Stop orders, valid for the Day or GTC (Good till cancelled), and an order in the opposite direction offsets your existing position, reducing or closing it, rather than opening a separate one. It doesn't replace watching your margin level: keep an eye on it in the app. Pluang also sends alerts by email and push notification.

Q: How can I lower the risk when trading Commodities?
Start small and keep a buffer. Deposit well above the bare margin: with only US$45 deposited for 1 lot of gold (a balance of US$44.89 after opening fees, a margin level of about 104%), the margin call would come after a fall of about US$10. Trade fewer lots than your balance allows, watch your margin level, keep swap in mind if you hold positions overnight, and only trade with money you can afford to lose. This is general information, not investment advice.