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. At present, there are both gold futures margin trading and gold spot margin trading.

The main functions of gold margin trading are: first, price discovery; The second is hedging; The third is speculative profit. Price discovery is the function of gold futures trading, and gold futures price is the future embodiment of gold spot price. Both futures margin trading and spot margin trading can achieve hedging. Gold hedging refers to the market operation mode that gold traders lock in risks or profits at present value in order to avoid the market risks brought about by the uncertain changes of gold prices in the future.