Buying up is also called buying more. When you expect the gold market to rise, buy spot gold at a lower price and wait for the market to rise before selling and closing.
Buying down is also called shorting. When you expect the gold market to fall, sell spot gold at a higher price and wait for the market to fall before buying and closing.
Two-way trading of gold refers to doing more short, generally speaking, buying up and buying down, but gold is leveraged, so it is necessary to control the risks.
Characteristics of gold T+D trading;
The biggest feature of gold T+D trading is that it can be a two-way trading mechanism, that is, it can buy up or down, with flexible investment and great profit opportunities. Without market ups and downs, investors have the opportunity to make profits.
The gold T+D market is the market for buying and selling gold td contracts. This kind of transaction involves producers and operators who transfer the risk of price fluctuation and venture capitalists who bear the price risk and make profits. Fair competition shall be conducted in the exchange according to law and guaranteed by the margin system.
A notable feature of the margin system is that it uses less money to make larger transactions, and the margin is generally 10% of the contract value. Compared with stock investment, investors' investment funds in the gold t+d market are much smaller than other investments, commonly known as "small bets".
The purpose of gold T+D trading is not to obtain physical objects, but to avoid price risks or arbitrage, and generally does not realize the transfer of commodity ownership. The basic function of gold T+D market is to provide producers and operators with the means of hedging and avoiding price risks, and to form a fair price through fair and open competition.