Gold hedging?
Gold only makes sense if it is hedged with crude oil.
What is hedging? I don't want to break the stop loss order and use another variety to minimize my losses. However, gold is too strong, and it can only hedge the crude oil stronger than him, while there is no crude oil on the general platform.
I hope I can help you.
What does gold futures hedging mean?
The hedging transaction between futures and spot is a transaction with the same quantity and opposite direction in both futures and spot markets. This is the most basic form of futures hedging transaction, which is obviously different from other hedging transactions. First of all, this hedging transaction is not only conducted in the futures market, but also in the spot market, while other hedging transactions are futures transactions. Secondly, this kind of hedging transaction is mainly to avoid the risks brought by price changes in the spot market and give up the possible benefits brought by price changes, which is generally called hedging. The purpose of several other hedging transactions is to carry out speculative arbitrage from price changes, which is usually called profit hedging. Of course, the hedging between futures and spot is not limited to hedging, and it is also possible to hedge when the price difference between futures and spot is too large or too small. Just because this hedging transaction needs spot trading, the cost is higher than that of simply doing futures, and some conditions are needed to do spot trading, so it is generally used for hedging.
What does hedging arbitrage in spot gold mean?
Arbitrage generally refers to the trading behavior that futures market participants use the price difference between different months, different markets and different commodities to buy and sell two different types of futures contracts at the same time to obtain risk profits from them. It is a special way of futures speculation, which enriches and develops the content of futures speculation, making futures speculation not only limited to the horizontal change of the absolute price of futures contracts, but also turned to the horizontal change of the relative price of futures contracts.
1. The form of arbitrage
(1) Period arbitrage: Period arbitrage refers to an operation mode in which the same member or investor establishes the same number of trading positions with opposite directions in different contract months of the same futures product for the purpose of earning the difference, and ends the trading by hedging or delivery. Intertemporal arbitrage is one of the most commonly used hedging profit transactions, which is divided into bull spread, bear market arbitrage and butterfly arbitrage in practice.
(2) Cross-market arbitrage: including arbitrage of the same commodity in different markets at home and abroad, spot market arbitrage, etc. ;
(3) Cross-commodity arbitrage: Arbitrage activities are mainly carried out by using the strength contrast differences between commodities with high correlation (such as substitutes, raw materials and downstream products).
2. Definition of hedging
There are many kinds of hedging, which is intended to be a two-way operation. Economic hedging is to achieve the purpose of hedging. Hedging in import and export trade means that importers and exporters buy foreign currency in the foreign exchange market in order to avoid direct or indirect economic losses caused by foreign currency appreciation, and the purchase amount is equivalent to the foreign currency they need to pay for imported goods; Futures hedging refers to the behavior that customers buy (sell) a futures contract and then sell (buy) a futures contract with the same delivery month as the original variety to offset the delivery spot. Its main point is that the months are the same, the directions are opposite, and the quantity is the same.
3. Hedging and arbitrage
Arbitrage is a common sense concept in modern financial or investment textbooks. From the point of view of traders, arbitrage refers to arbitrage of the price difference of homogeneous or strongly related trading varieties with different prices; Judging from the behavior of traders, arbitrage refers to buying and selling homogeneous or strongly related trading varieties in order to avoid systemic risks, which is hedging.
In fact, there is no difference in concept between the factual basis of hedging arbitrage and the "value return" path on which value investment depends, but there is an essential difference in the way of avoiding risks.
What is gold and silver hedging transaction? How to operate
That is to buy physical gold and silver, once the price falls, it will lose money.
If paper gold and silver are sold at the same time, once the price falls, the physical gold and silver will lose money, paper gold and silver will make money, and the risk will be offset.
Once the price rises, the physical gold and silver are earned, the paper gold and silver are lost, and the risks are offset.
This is mainly used by jewelry companies and gold companies to lock in profits.
How do gold traders hedge gold
General market makers have the following profit models:
Backstage hedging: match the opposite positions held by customers in a small range. If there are redundant positions, call ECN platform for matching. In theory, this practice will not cause conflicts of interest to customers, but it can earn more fees (spreads) for market makers. The only risk comes from the price difference caused by the market maker's "secondary filtering" ECN quotation delay. In this case, market makers should bear this part of the risk themselves and should not pass it on to customers.
Direct connection to ECN, no background interference: this model is relatively stable, and a certain spread is added to ECN's quotation, making it relatively fixed and earning profits purely through spread. Similar to the previous situation, this model will not have a conflict of interest for customers in theory, and the risk of market makers comes from the price gap caused by the delay in quotation.
Backstage gambling: this model conflicts with the interests of customers. Market makers and customers are counterparties, and one party will lose money, and vice versa. But the key is not the nature of gambling itself, but the practice of market makers. Since more than 70% of traders in the market are losing money, it is indeed profitable for market makers to use this model. Even if you encounter a loss order, you can resolutely implement it and make customers profitable. You are also a reliable market maker.
In addition, restrictions on ultra-short lines: In order to avoid unnecessary troubles caused by data delay, some market makers will restrict the execution of ultra-short lines, and at the same time, pending orders must leave the market price within a certain range. As a way for market makers to avoid risks, I think it is still within a reasonable range. Who called them market makers?
In fact, the choice of trader platform hides unexpected risks. Customers can be divided into two categories. Customers with strong profitability are separated and enter the slow execution mode. Such customers face many obstacles, such as slippage and difficulty in completing orders. Customers with poor profitability are classified as automatic execution mode, because on average, these customers are losing money. Market makers have a better chance of winning when dealing with these weak people. As for transparency, we can only look at the internal policies of these market makers.
How does spot gold hedge arbitrage? 5 points
General funds are only enough to sign risk agreements with formal platforms. Like going to Tiantong or TD.
For example, if you have10 million funds, you can sign a risk-taking rate with them. If the position is broken, the platform will return some funds (the funds are not big enough, and the platform will not sign a contract with you, at least the funds are more than10 million).
Two positions, one is long and the other is short. When the market fluctuates greatly, one explodes and the other doubles. What doubles is the total cost. The money returned to you by the warehouse breaker is profit. Like the market fluctuation last year, you can still do this. This year's market as a whole is a volatile market. So if you do arbitrage, it is difficult to see profits.
Why is there a hedge between gold and the dollar?
The United States manipulates the dollar and gold from time to time, and the purpose of pushing up the price of gold is to recover a large amount of dollars through investors buying gold in dollars, which is conducive to the appreciation of the dollar. "We don't want to make money with gold, because gold is also vertical, and it may lose money vertically; But if I buy gold worth $65,438+000 and buy $65,438+000 at the same time, I realize hedging. After the financial crisis passed, I neither lost money nor made money, and my assets were preserved. "
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Gold and silver hedging problem 15 point
The price of precious metals cannot be guessed at will like precious metal investment banks. Blind investment in silver is not recommended. Caution is necessary when investing in risky business. All major banks have consultation, and it is not recommended to be cheated. Despise financial advertisements
Geopolitical tensions maintained the price of precious metals, and sanctions against Russia led to a sharp rise yesterday and then fell.
On August 29th, 20 14, the transaction price was about 3.84 yuan, which was about that of jewelry in 6 yuan.
Investing in risky businesses requires caution, contempt for advertising, and contempt for some helpful administrators.
For photo verification, please ask.
How to hedge the high risk of gold trading?
Hedging is a kind of arbitrage and belongs to the most basic operation mode. Different funds have different operations, including hedging with the same product and hedging with different products. The initial capital of gold hedging is at least RMB 6,543,800+0,000. The greater the capital, the more flexible the operation mode and the less the risk. This is also the reason why it is easier for the rich to make money, and the income from venture capital is large and stable.
What is gold and silver hedging transaction? How to operate
Hedging transaction is to conduct two market-related transactions at the same time, in opposite directions, with the same amount, and break even. In other words, if you are an agent and others buy from you, then you have to sell it in the company.