logo |

News

    Home   >     Original    >     Main body

    HSBC Lost US$200 million in Gold Trading

    Abstract:May 18th from WikiFX news.According to US media, HSBC lost around US$200 million within one day in March, much exceeding the maximum loss estimated by HSBC’s risk value model and costing a whole year’s total gain in gold trading.

      May 18th from WikiFX news.According to US media, HSBC lost around US$200 million within one day in March, much exceeding the maximum loss estimated by HSBC‘s risk value model and costing a whole year’s total gain in gold trading.

      In other words, HSBC lost a whole years gold-trading profit within just one day.

      The loss has largely been due to the extremity in March, as the lockdown measures cut off material golds supply channel around the globe. Price gap between New York gold futures and London spot gold hit a record high of US$70.

      In general, the spread between spot gold and futures is no more than a few dollars per ounce. Banks usually sell gold futures in New York as a way to of hedging for the positions in the London market, and a significant variation of prices in the two markets will cause them heavy losses.

      According to HSBC, the loss due gold‘s market value was attributed to challenges gold refinement and transportation.As spot-gold trading expanded unprecedentedly, this affected HSBC’s gold leasing and financing businesses, as well as other hedging activities, leading to a loss.

      HSBC is not the only institution that suffered from gold markets unusual volatility. The long-established Bank of Nova Scotia in Canada also closed precious metal trading department in March, allegedly for the same reason.

    圖片1.png

    Latest News

    Singapore Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand
    Current Rate  :
    --
    Amount
    Singapore Dollar
    Available
    -- United States Dollar
    Risk Warning

    The Database of WikiFX comes from the official regulatory authorities , such as the FCA, ASIC, etc. The published content is also based on fairness, objectivity and fact. WikiFX doesn't ask for PR fees, advertising fees, ranking fees, data cleaning fees and other illogical fees. WikiFX will do its utmost to maintain the consistency and synchronization of database with authoritative data sources such as regulatory authorities, but does not guarantee the data to be up to date consistently.

    Given the complexity of forex industry, some brokers are issued legal licenses by cheating regulation institutes. If the data published by WikiFX are not in accordance with the fact, please click "Complaints "and "Correction" to inform us. We will check immediately and release the results.

    Foreign exchange, precious metals and over-the-counter (OTC) contracts are leveraged products, which have high risks and may lead to losses of your investment principal. Please invest rationally.

    Special Note, the content of the Wikifx site is for information purposes only and should not be construed as investment advice. The Forex broker is chosen by the client. The client understands and takes into account all risks arising with Forex trading is not relevant with WikiFX, the client should bear full responsibility for their consequences.

    ×

    Select Country/Area

    ×

    Select Country/Area