The difference between gold inside and outside
In the gold investment market, internal and external markets are often regarded as stock terms, which are used to analyze stock market and judge the strength of buyers and sellers. However, when they are used in the gold market, their meanings are different. So, what are the differences between gold inside and outside?
As an important part of the market, the internal gold market and the external gold market have similarities in trading mechanism, but there are also differences.
1. The leverage ratio is different
The trading leverage of the external market is higher than that of the internal market, usually reaching 100 times or more, while the trading leverage of the internal market is mostly less than 50 times.
2. Different benefits and risks
The difference of leverage ratio between gold internal and external markets leads to different returns and risks. Generally, higher leverage ratio is adopted in external market, and investors can control the risk according to their own situation, and the risk has certain controllability. In addition, due to the higher leverage ratio, the external market can make investors earn more considerable profits by small and broad; while the internal market usually uses lower leverage ratio, which can obtain relatively less income.
3. Different settlement currencies
The settlement unit of external market is mostly US dollar, while that of internal market is RMB.
4. Different transaction costs
The service charge of the internal disk is higher than that of the external disk, and the investment principal is also higher.
5. Different price fluctuations
The price of the external market will fluctuate violently in the special market, which is suitable for investors to gain profits in the short and medium term; on the contrary, the price fluctuation of the internal market is relatively small, which is suitable for investors to make long-term stable investment.
In addition, the trend of the internal market will generally be affected by the external trend.