Schematic diagram of the gold market Gold margin trading means that in the gold trading business, market participants only need to pay a certain percentage 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 in the world gold trading.

Gold margin trading is a double-edged sword. When gold users or producers need to hedge the spot to avoid market risks, they don't need to occupy a lot of money, but only need to pay a certain percentage of deposit as a guarantee for physical delivery. This trading method reduces the financial pressure of market participants, which is its advantage. The disadvantage is that it often brings great risks. If investors blindly speculate on the amount of hedging, once they make mistakes, they will incur heavy losses and even go bankrupt.