The spot gold unit of the outer disk is ounces, and the leverage ratio can be as high as 100 times. High leverage and high returns are the main reasons why domestic investors choose to invest in the external market. The risk of the outer disk is higher than that of the inner disk, and the system liquidation coefficient is lower, which means that you will encounter greater risks when shorting.
The outer disk is in ounces, and London gold is priced in dollars. Precious metal companies in Hong Kong are governed by the laws of Hong Kong, and they are leveraged transactions, which have greater profit opportunities, higher profits and greater corresponding risks. At present, the external trading in the market is mainly concentrated in the member units under the Gold and Silver Trade Association of Britain and China. For example, Jin Rong, the 84th member of China, belongs to AA level of the fair, which provides investors with outside gold trading.
The inner disk refers to the domestic or mainland platform.
The inner disk is regulated by domestic laws, and the funds are managed by the third party of the bank, so there is no risk in the principal and the handling fee is higher than that of the outer disk. The internal market can be an exchange approved by the state or a member of the exchange approved by the local provincial government. The more formal gold trading platforms are: Shanghai Gold Exchange, tianjin precious metal exchange and Guangdong Precious Metals Trading Center.
The gold unit of the inner disk is grams, and the settlement unit is RMB. The leverage is about 12 times, and the income is smaller than the external disk. The market fluctuation is small, which is more suitable for long-term investment, but the realization coefficient of the system is relatively high.