Spot gold is a margin trading model. Margin trading, also known as false trading and margin trading, means that investors use their own funds as a guarantee to enlarge the financing provided by banks or brokers for spot gold trading, that is, to enlarge the trading funds of investors. The financing ratio is generally determined by banks or brokers. The greater the financing ratio, the less money customers need to pay. International financing multiple is also called leverage. For example, the standard contract in the market is 65438+ 10,000 yuan per lot. If the leverage ratio provided by the brokerage firm is 20 times, the first-hand trading needs a deposit of 5,000 yuan; If the leverage ratio is 100 times, the buyer and the seller need a deposit of 1000 yuan.

Gold margin trading means that in the gold trading business, market participants do not need to allocate full funds for the traded gold, but only need to pay a certain proportion of the price according to the total amount of gold transactions as a performance guarantee for the physical delivery of gold. In the world gold trading, there are both gold futures margin trading and gold spot margin trading.

Margin trading means that customers only need to pay a certain proportion of the contract value when buying and selling foreign exchange spot contracts or futures contracts, and decide the profit and loss according to the contract amount, so that the profit and loss of spot contracts and futures transactions have leverage effect. Generally speaking, it is the money invested by customers to achieve the goal of being small and broad!

I hope it helps you!