What is gold option? What is gold futures? What is the difference between gold option and gold futures?
What is a gold option? A gold option means that the buyer and the seller have the right to purchase a certain amount of the underlying at the price agreed in the future, rather than the obligation. If the price trend is favorable to the buyer and seller of the option, they will exercise their rights and gain profits. If the price trend is unfavorable to them, they will give up the right to purchase, and the loss is only the cost of purchasing the option at that time. What is gold futures? It refers to the futures contract whose trading target is the gold price at a certain point in the international gold market in the future. The profit and loss of investors in buying and selling gold futures is measured by the gold price difference between the entry and exit time. After the contract expires, it is physical delivery. What's the difference between gold options and gold futures? 1. Different investment threshold
(1) The object of gold futures trading is the gold contract of each term provided by the futures exchange. The quotation is provided in RMB, and the starting point of trading is one hand contract, that is, 1000g. The margin charge standard for individual gold futures contracts is generally 11% of the contract value. At present, the most recent contract is the June 2008 contract. Individual investors need at least 24000 yuan for trading, and the daily trading limit is 5%.
(2) The object of gold option trading is spot gold in the international market. The quotation is provided in US dollars. The starting point of trading is 20 ounces of gold, that is, 622g. When individuals invest in gold options, they need to pay a certain option fee, while the term of options provided by the bank includes six options ranging from one week to six months. In the shortest one week option, the option fee is generally $10 / oz, so investors need to invest $200 for gold option investment. There is no limit on the rise and fall of "gold option" investment.
2. The risks are different
Because they are two different products, "gold futures" and "gold options" face different investment risks.
(1) When investing in gold futures, individual customers will face the risk of forced closing due to insufficient margin balance. The customer may lose all the money in the account. Because the price fluctuation of domestic gold futures market is affected by the fluctuation of international market, and the gold price often fluctuates greatly in the New York market at night, it is inevitable that the gold price of domestic futures exchange will jump short, and the trading risk of investors' positions will increase.
(2) In gold option trading, as the buyer of the option, the customer's biggest loss has been determined at the beginning of the transaction, that is, the option fee paid to the bank. No matter how the gold price changes in the future, the customer's biggest loss has been determined. As long as the market fluctuation is favorable to the customer during the term of the option (including the maturity date), the customer can choose the put option to lock in the profit without worrying about the large reverse fluctuation.