One of the characteristics of futures is that investors buy a certain amount of silver in deposits received, a futures brokerage institution. Generally speaking, buyers and sellers of silver futures close their positions by selling and repurchasing the same number of contracts as before before the contract expiration date, without actually delivering real money and silver.
The profit and loss of each transaction is equal to the difference between two contracts in opposite directions, which is also commonly known as "speculating in silver".
Silver futures contract trading only needs a small amount of margin as the investment cost, which is highly leveraged, that is, a small amount of funds promotes large transactions, so silver futures trading is also called "margin trading".
Advantages of silver futures:
1, two-way trading, you can buy up or down.
2. Implement the T+0 system, and you can buy and sell at any time during trading hours.
You can buy and sell all silver with a small amount of money.
4. The price is open and fair, linked to the international market 24 hours a day, and it is not easy to be manipulated.
Advantages of investing in silver futures:
1, with high liquidity, the contract can be realized on any trading day, which belongs to T+0 transaction.
2, greater flexibility, investors can enter the market at a satisfactory price at any time.
3. Diversity of entrustment orders, such as spot market transactions and price limit transactions. For quality assurance, investors don't have to worry about the quality of the bid in their contracts, and they don't have to bear the evaluation fees.
It is safe and convenient, and investors don't have to spend energy and money to save real money.
5. leverage, that is, trading with a small amount of margin. Price advantage, the target of silver futures is wholesale price, which is better than retail and decorative silver price.
6. The market is centralized and fair. Under 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.
7. Hedging, that is, buying and selling futures contracts with the same quantity and price to offset the losses caused by price fluctuations of yellow and silver, is also called "hedging".