Precious metal trading refers to the process that investors buy low and sell high to earn the difference when they are optimistic about the precious metal market.
What are the characteristics of precious metal trading?
5-day 24-hour transaction:
Spot gold trading is open 24 hours a day, 5 days a week. Compared with the popular T+D, futures, stocks and other transactions, it takes longer and is more convenient for traders to arrange flexibly.
Margin trading:
Spot gold trading implements a margin system, and the leverage is generally high. The leverage provided by many traders is 100: 1. It means that traders can use leverage to "amplify" funds for trading. Because of leverage, the requirements for the capital threshold of traders are relatively low. For example, when the price of gold is $0/300 per ounce, under the leverage of 100: 1, trading 1 ounce of spot gold only needs about 10. Of course, margin leverage is a "double-edged sword", which can not only increase profit opportunities, but also amplify the risk of loss.
Two-way trading can always find a "bull market";
Different from paper gold and physical trading, one of the characteristics of spot gold trading is that traders have trading opportunities regardless of the price of gold.
Zero handling fee:
There is generally no commission for spot trading of gold. Traders profit from the difference between bid and ask points.