Why Is My Commodities Position at a Loss Right After I Opened It?

Question

Accepted Answer

This is normal. A new position starts slightly behind because of the spread, the gap between the buy and sell price, which is already built into the price you see. You also pay a small JFX & KBI fee plus VAT when you open, about US$0.11 on 1 lot. The price must move in your favour to cover them.

Symptom / ConditionPossible CauseSolution
  Your position shows a small loss the moment it opensThe spread: you open at the buy price, but a Long is valued at the sell price (for a Short, the other way round). The spread is already in the price and isn't charged separatelyNothing is wrong. The price needs to move in your favour by more than the spread before the position shows a profit.
  Your balance dropped by more than the position's lossOpening fees: a JFX & KBI fee of US$0.10 per lot, capped at US$1 per order, plus 11% VAT: about US$0.11 on 1 lot, and about US$1.11 on an order of 10 lots or more. Pluang currently charges no transaction fee on Commodities (0%)Check Transaction Fee and Taxes & Third Party Fees on the order page before you confirm. The same fees apply again when you close.
  Your result looks worse the next morning without a big price moveA swap charge at the daily rollover (05.00 WIB, or 04.00 WIB during US Daylight Saving Time), plus 11% VAT. For gold and silver, the Thursday rollover counts three daysCheck the swap entry in Transaction History. A position opened and closed between two rollovers has no swap.
  The price moved against you straight after openingNormal market movement, magnified by leverage (up to 100x on gold, 20x on silver, 50x on Brent crude). At 100x, a 1% move in gold equals 100% of the margin usedKeep an eye on your margin level in the app, and keep enough funds in USD Margin (Commodities) to stay clear of the 80% margin call and the 70% second warning.

If the issue persists:Contact Pluang Care via live chat in the Pluang app, email tanya@pluang.com, or call (021) 8063 0065 (Monday to Friday, 09:00–18:00 WIB). Include the instrument, the time you opened the position, the number of lots, and a screenshot of the position.

Related questions:
Q: Is an instant loss after opening an error?No. Every new position starts slightly behind because of the spread, and the small JFX & KBI fee applies too. It's a normal cost of trading, not a fault.
Q: Can I avoid the spread?No. The spread is part of every buy and sell price. It's already built into the price you see and isn't charged separately.
Q: Does Pluang Plus reduce Commodities fees?The transaction fee and the JFX & KBI fee are the same for every user, including Pluang Plus members. Pluang currently charges no transaction fee on Commodities (0%), and the JFX & KBI fee is US$0.10 per lot, capped at US$1 per order, plus 11% VAT, on opening and on closing.
Q: How far does the price need to move before I break even?Far enough to cover the spread and the fees on opening and closing. On 1 lot of gold at an illustrative US$4,300, the fees for a round trip at the same price come to about US$0.22, so gold needs to move about US$0.22 in your favour, plus the spread and any swap.

Symptom / Condition	Possible Cause	Solution
Your position shows a small loss the moment it opens	The spread: you open at the buy price, but a Long is valued at the sell price (for a Short, the other way round). The spread is already in the price and isn't charged separately	Nothing is wrong. The price needs to move in your favour by more than the spread before the position shows a profit.
Your balance dropped by more than the position's loss	Opening fees: a JFX & KBI fee of US$0.10 per lot, capped at US$1 per order, plus 11% VAT: about US$0.11 on 1 lot, and about US$1.11 on an order of 10 lots or more. Pluang currently charges no transaction fee on Commodities (0%)	Check Transaction Fee and Taxes & Third Party Fees on the order page before you confirm. The same fees apply again when you close.
Your result looks worse the next morning without a big price move	A swap charge at the daily rollover (05.00 WIB, or 04.00 WIB during US Daylight Saving Time), plus 11% VAT. For gold and silver, the Thursday rollover counts three days	Check the swap entry in Transaction History. A position opened and closed between two rollovers has no swap.
The price moved against you straight after opening	Normal market movement, magnified by leverage (up to 100x on gold, 20x on silver, 50x on Brent crude). At 100x, a 1% move in gold equals 100% of the margin used	Keep an eye on your margin level in the app, and keep enough funds in USD Margin (Commodities) to stay clear of the 80% margin call and the 70% second warning.