What is Market Loss?

What is a preauthorization?

• It’s a hold of at least 5% of your order total, placed when you lock in your sell price.
• Example: on a $10,000 sell order, the minimum preauthorization is $500.
• The hold is placed when you create the sell, released when the metals arrive.
• It is not "captured" or "charged" on your card and will show up as pending on your active banking statement.

Why is it required?

• When you lock in a sell price, we immediately make a matching trade in the live market to secure that price for you.
• Metals prices move constantly. The preauthorization helps cover us if that trade has to be reversed.

What happens if I cancel my sell from home transaction?

• If you cancel after locking in your price, we have to offset (undo) the trade we placed at the current live market price.
• If the market has moved against that trade, there may be a loss.
• If the market has moved in the other direction, there may be no loss.
• Your shipping label cost will not be reimbursed. 

Who covers a loss?

• Any loss from offsetting the trade is passed on to you, the client. Limited up to the preauthorization amount. That pending authorization will then be "captured" or "charged". 

Can you show me an example?

• You lock in a sell order of $10,000 and preauthorize $500.
• You cancel, and the market has dropped 2% since you locked in your price.
• Offsetting the trade costs about $200. 
• That $200 is applied to the loss, and the remainder of your hold is released.

How can I avoid a cancellation loss?

• Confirm your order details before locking in your price.
• If you’re unsure about selling, wait to lock in until you’re ready.
• Contact us before locking in if you have questions about the process.

Who do I contact with questions?

• 888-319-8166 our representatives are happy to answer all of your questions.