How it is calculated
The Denprice is the effective trading price of gold, which is applied by DENARO to the customers. Namely, the price of the execution of the order.
DENARO have chosen to use as reference an official and internationally recognized price of the gold: the price of the Fixing London Bullion Market Association LBMA.
Precisely, we have decided to use as reference price, for all the trading operations, the value of the Fixing PM, that is the afternoon LBMA Fixing of 15.00 o’clock, London time.
When operating, it will be enough, to bear in mind that:
The transaction commission is added or deducted (whether is a purchasing or a sale) to/from the reference price of the Fixing PM, thus obtaining the Denprice. Namely the real price of the execution of the order.
Firstly, the official value of the LBMA Fixing PM, which is in Currency/Troy Ounce, is converted into Currency/Grams.
ƒ FORMULA: LBMA Fixing PM in Troy ounce / N. grams X Ounce = Fixing PM in Grams
|Fixing PM LBMA in €/troy ounce||Gramms per ounce||Fixing PM in €/grams|
|€ 1.161,017||31,1035||€ 37,32754|
Calculation of the Denprice for a purchase order
ƒ FORMULA: Fixing PM in Currency/gr + Fee % = DENPRICE BUY.
1) the value of the Fee % is added to the value of the Fixing PM.
|Fixing PM €/gr||Fee/Premium 0,5 %||Fix + Fee = DENPRICE|
|€ 37,32754||€ 0,18664||€ 37,51417|
2) The quantity of gold effectively purchased by the customer = amount of the order in currency/ Denprice.
|Purchase order in currency||DENPRICE||Purchased quantity Gr.|
|€ 1.000,00||€ 37,51417||Gr. 26,66|
Calculation of the Denprice for the sales orders
A) Sale by Value
ƒ FORMULA: Value of the sale / (FixingPM - 0,5%) + FIX Cost = Sold quantity
1) First the value of the Fee % is deducted from the Fixing PM calculating the quantity in gold grams.
|Value of the sale||Fixing PM||Fix - Fee 0,5%||Calculated quantity|
|€ 1.000,00||€ 37,32754||€ 37,14090||Gr. 26,925|
2) Afterwards the fix gr/gold cost is added and the real sold quantity is calculated.
|Calculated quantity||Fix Cost||Sold quantity||DENPRICE SELL|
|Gr. 26,925||Gr. 0,1||Gr. 27,025||€ 37,0027|
3) The sold value (€ 1000) divided by the sold quantity, as per the above calculation, sets the Denprice Sell, namely the price of execution of the order.
ƒ FORMULA: DENPRICE SELL = (1000 / 27,025) = 37,0027 euro.
B) Sales by quantity
ƒ FORMULA: [Sold quantity x (FixingPM - 0,5%)] - (FIX Cost x Fixing PM) = Value of the sale
1) First the value of the Fee % is deducted from the Fixing PM.
|Fixing PM||Fee 0,5%||Fix - Fee 0,5%|
|€ 37,32754||€ 0,18664||€ 37,14090|
2) Afterwards it is calculated the value of the sold quantity.
|Sold quantity||Fix - Fee 0,5%||Calculated VALUE|
|Gr. 100||€ 37,14090||€ 3714,090|
3) The fix cost in gr/gold is calculated at the value of the Fixing PM.
|Fix cost||Fixing PM||Fix cost by value|
|Gr. 0,1||€ 37,32754||€ 3,74|
4) ) The value of the fix cost is deducted from the calculated value, setting the effective value of the sold quantity.
|Calculated value||Fix cost by value||Value of the sale|
|€ 3714,09||€ 3,74||€ 3710,35|
ƒ FORMULA: DENPRICE SELL = (€ 3710,35 / Gr. 100) = 37,10350 euro.