Gold futures only need to pay a small amount of margin as the investment cost, which is highly leveraged and can promote block trading.
Disadvantages of gold futures
1 gold futures contracts have different trading margin collection standards at different stages of listing operation. The time to enter the market determines the margin ratio. If investors do not pay attention to the additional margin when operating, it is easy to be closed.
If you don't choose to close your position before maturity, you must deliver physical gold at maturity, which is not what ordinary investors are willing to choose.
It is compulsory that natural persons should not deliver gold in kind. If the position of natural person customers is not zero in the delivery month, the exchange will implement compulsory liquidation from the first trading day of the delivery month. The profits generated by forced liquidation shall be handled according to the relevant provisions of the state, and the losses generated by forced liquidation shall be borne by the responsible person.
Advantages of gold futures:
1, two-way trading, you can buy up or down.
2, the implementation of the T+0 system, in the trading hours, you can buy and sell at any time.
3. You can buy and sell all gold with a small amount of money.
4, the price is open and fair, 24 hours in line with international standards, and it is not easy to be manipulated.
5. The market is centralized and fair. Under the open conditions, the futures trading prices of a region, a country and major financial and trade centers and regions in the world are basically the same.
6. Hedging, that is, buying and selling futures contracts with the same quantity and price to offset the losses caused by gold price fluctuations, is also called "hedging".
How to do gold futures?
1. Gold futures generally choose online trading, which is convenient and fast.
2. Precautions for futures trading should follow the trend, do not operate against the trend, try to do short-term operations in the day as little as possible, and control positions, not exceeding 70% to 80%.
3. The risk ability of controlling positions against various price fluctuations is reduced.
4. Remember not to chase after the ups and downs.