Why can't gold futures be closed?

gold futures

In the process of investing in gold futures, some investors wonder why gold futures can't be closed? Why can't gold futures be closed? If a natural person customer really needs to buy spot gold, it can be realized through channels and ways such as bank or spot market trading.

The provisions that positions are not allowed to enter the delivery month shall be explained in the risk control management measures.

The main function of futures market is price discovery and hedging. Physical delivery is not the main purpose of futures trading. At the same time, futures delivery rules have a series of requirements and regulations for different types of investors. This is also the difference between futures market and spot market. Therefore, in order to strengthen the risk control, the previous period stipulated that natural person customers are not allowed to carry out physical delivery of gold, and also stipulated that the position of natural person customers entering the delivery month should be adjusted to zero.

If the position of a natural person customer is not adjusted to zero in the delivery month, the exchange shall enforce compulsory position closing from the first trading day of the delivery month. The profits arising from forced position closing shall be carried out in accordance with the relevant provisions of the state (i.e. not belong to natural person customers), and the losses arising from forced position closing shall be borne by the responsible person.

If natural person customers really need to buy spot gold, it can be realized through channels and ways such as bank or spot market trading.

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