What kind of financial transaction is the leveraged margin gold traded by customers, and what is the difference between it and the gold products launched by the Shanghai Gold Exchange? What is the difference from domestic gold futures?

Answer: It is local London gold. The London Gold Exchange is the mainstream exchange that supports gold margin. The delivery of its positions is concentrated in the five major gold merchants in London. Trading institutions in various places can complete sales and delivery directly with the London Stock Exchange through advanced telecommunications equipment. Therefore, the internationally accepted name is not gold margin, but "local London gold" transaction. Since this transaction is not limited by time and place, and is a two-way operation mechanism of long and short, using a margin leverage operation similar to futures, it has achieved great development in recent years and has gradually become a popular choice in gold investment and speculation. Mainstream way. In our country, only Hong Kong can legally carry out this transaction, and the mainland has not yet established relevant transaction channels.

The gold product launched by the Shanghai Gold Exchange is spot gold, and the futures company launches gold futures. Both trading products require spot delivery. Of course, they are also using some methods to delay delivery. (T+D), but spot transactions are still required. What should be pointed out here is that some people in China believe that the local London gold business is gold futures trading. This is a wrong view. These are two completely independent trading products! The biggest difference is that local London gold operates on the current price of gold, and there is no physical delivery. Take Hong Kong's local London gold market as an example. Since Hong Kong's trading hours just fill up part of the international gold market's trading hours, the five major gold merchants in London and the three major Swiss banks have come to Hong Kong to set up branches. They will settle in London. Gold trading activities were brought to Hong Kong, and an invisible local "London gold market" gradually formed, making Hong Kong one of the world's major gold markets.

How does local London Gold complete transaction settlement?

Answer: Local London gold is ultimately settled by banks and brokers around the world to the five major gold merchants in London through electronic network transactions. As a broker, Hantec Group will conduct settlement for its own customers every trading day. The settlement of trading volume first involves hedging customers' short purchases and sales, and excess positions are settled with other banks, brokers, or directly with the five major gold merchants in London at 3:30 a.m. every day. Local London Gold is currently not available for delivery in mainland China. Only Hong Kong can deliver London Gold in China. Therefore, domestic trading of London Gold is currently unavailable.

For example, a customer buys gold on the Hantec trading platform. At that time, the international gold quotation is 830, and the customer’s transaction price is 830.50. At this time, the customer and Hantec have determined the quotation to complete the transaction, and At this time, Handa Group must buy gold in the international market between 830 and 830.50 to complete the settlement. If the settlement is not completed within this price range, it will cause losses to the company. This example illustrates that a company that conducts London gold trading must have an international settlement system. If not, all transactions will become intra-company transactions, which will increase risks and bring instability to operations. This example also illustrates why reasonable spreads exist.

How is local London gold trading regulated in Hong Kong?

Answer: Companies engaged in local London gold trading are uniformly supervised by the Hong Kong Economic Authority. In Hong Kong, the major brokers operating local London gold will trade with each other. At this time, we will choose a company licensed in the gold and silver trading center. Because holding this license can prove that the company has professional personnel, good company qualifications, and strong financial support to ensure safe and smooth transactions.

For the same local London gold, what is the difference between European and American companies and Hong Kong companies?

Answer: Compared with European and American companies, Hong Kong companies have more geographical advantages. They have convenient communication and close cooperation with the mainland, and it is convenient for customers to deposit and withdraw funds. At the same time, because they all speak Chinese, customers may encounter difficulties during transactions. All kinds of problems can be communicated well with our customer service and the problems can be solved faster. When a dispute occurs, mainland customers can go to the Hong Kong company to resolve it face to face. When legal means are needed, legal aid is more feasible than for European and American companies.

Is there any local London gold trading in China?

Answer: There is currently no local London Gold settlement system in China, and the Shanghai Gold Exchange currently only implements gold spot trading, so there is currently no London Gold trading in the country. To conduct local London Gold trading, the region must have a London Gold settlement system overseas. If there is a domestic company that conducts London gold trading, it must not comply with Chinese laws and regulations.

Are customer transaction funds safe in the country?

Answer: Not safe. Because London gold business has not yet been opened in China. Due to London gold trading, customer funds must participate in the operation of the international market. If client funds are traded domestically, the funds can only be traded by a company or institution through internal hedging, which is quite unsafe and illegal.

If most of the company's customers lose money, it will form the company's income; if most of the company's customers make profits, the company will be unable to pay the customers' profits due to a shortage of funds, which will pose a considerable threat to the customers' funds< /p>

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