What is the difference between gold spot and gold futures?

Gold futures/

Two way selection operation, open market, variety list, simple operation, gold margin trading has won the favor of many people. Then, in gold margin trading, what's the difference between spot gold margin trading and futures gold margin trading? How do we need to choose.

The first is gold spot margin trading, which is represented by London spot market. It has no fixed trading place. London's five largest gold merchants (Roche, Kimberly, wandaki, wanjiada and MySpace Pacific) are the counterparties of global market participants. When investors buy gold, they only pay a certain proportion of spot margin, and the remaining margin is small Payment for goods is similar to a loan to a bank, so a certain percentage of interest should be paid daily. Interest can also be interpreted as the loss of opportunity cost of gold merchants.

International spot gold margin trading

In contrast, gold futures margin trading, represented by the New York Mercantile Exchange and the New York Mercantile Exchange, has a fixed trading place, and its trading target is not spot gold itself, but a standardized gold trading contract, which stipulates that both parties will deliver gold in kind at an agreed price at a certain time in the future.

Gold margin trading refers to that in the business of gold trading, market participants do not need to transfer the full amount of gold they trade, but only need to pay a certain proportion of the total amount of gold trading as the performance guarantee for the physical settlement of gold. At present, there are not only gold futures margin trading, but also gold spot margin trading. Second, spot and futures are its two main trading methods. Of these two trading methods, which one do you prefer? Gold spot margin trading and gold futures margin trading have different characteristics, which are suitable for different markets and people. You can also choose reasonably according to different needs.

[disclaimer] the publication of this article by finance managers for the purpose of transmitting more information does not mean that they agree with their views or confirm their descriptions. The content of this article is for reference only, and does not constitute an investment proposal. Investors operate on this basis at their own risk

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