Gold futures refer to futures contracts with the gold price in the international gold market as the transaction target at a certain time in the future. The profit and loss of investors buying and selling gold futures is measured by the difference between the time of entry and exit, which is the physical delivery after the contract expires.

Although gold futures contracts and forward contracts are both contracts that agree to buy and sell a certain amount of certain subject matter at a certain time in the future according to the agreed conditions, the differences are as follows:

(1) has different degrees of standardization. The forward contract follows the principle of freedom of contract, and the relevant conditions in the contract, such as the quality, quantity, delivery place and delivery time of the subject matter, are determined according to the needs of both parties; Standardization of gold futures contracts, the gold futures exchange has formulated standardized terms on the quantity, quality, delivery place, delivery time, delivery method and contract scale of gold futures contracts of various subject matters.

(2) The trading places are different. There is no fixed place for forward contracts, and both parties to the transaction look for suitable objects; Gold futures contracts are traded on exchanges, and generally over-the-counter transactions are not allowed.

(3) The risk of default is different. The performance of the forward contract is only guaranteed by the credibility of both parties. Once one party is unable or unwilling to perform, the other party will suffer losses. The performance of the gold futures contract is guaranteed by the exchange or clearing company.