What is a gold option? What's the difference with gold futures? Can you tell me what you know?
Gold option is the right to buy a certain amount of gold in a certain market at some time in the future. If you buy a gold option, that is, you pay a part of the deposit to the seller, you can choose to perform it or not before it expires. If it is implemented, the remaining amount needs to be replenished. If you don't perform, you will bear the loss of the deposit. On the other hand, the seller received a deposit. Before the expiration, if the buyer needs to perform the contract, the seller has the obligation to deliver the subject matter. If the buyer fails to perform the contract, the seller will get the buyer's deposit directly. Gold futures is a contract that pays a certain margin, buys or throws a promise to deliver a certain amount of gold at a certain time in the future, and both parties bear the performance responsibility at maturity. However, both parties can hedge their positions before the contract is delivered, thus making a profit.