Trade future gold yield
Goal: you have a view on whether gold will yield more or less than the market currently implies.
| Your view | Position | Why |
|---|---|---|
| Gold yield will be higher than implied | Buy YT | You receive the actual yield, having paid the market’s lower expectation. |
| Gold yield will be lower than implied | Buy PT (or sell YT) | You lock the implied rate, which beats the realised yield. |
Example: buying YT
Section titled “Example: buying YT”| Scenario A | Scenario B | |
|---|---|---|
| Paid for 10 YT | 0.27 PAXG | 0.27 PAXG |
| Actual yield over the year | 4% → 0.40 PAXG | 1% → 0.10 PAXG |
| Net outcome | +0.13 PAXG | −0.17 PAXG |
Example: 1-year maturity at the 2.80% indicative testnet rate, values rounded.
Steps in the app
Section titled “Steps in the app”- Open the app and connect a testnet wallet.
- Choose Trade Future Yield.
- Pick a maturity and a direction.
- Review the indicative price and confirm.
Things to know
Section titled “Things to know”- YT prices move more than PT prices for the same change in rates, and YT value decays toward zero at maturity.
- YT is exposure to gold yield, not to the gold price. Losses are possible, up to the full amount paid.
- Testnet liquidity is demo liquidity and does not reflect mainnet conditions.