Hi Futures, many thanks for the reply.
Please stay with me on this as I am very new and don't 100% understand the situation.
What about this scenario.
What if I did what I said above and opened a short, gold went down to 1200.
My long position would mean I would be down £5100 but my short position would mean I would profit from £4000 if I went long at 1280.
Could I close my short position and take the £4000 profit and wait for gold to recover to 1300, assuming direction of course.
I understand that whilst both positions are open I would not win or loose but what if I close when the time is right?
Would that work??
Again many thanks