You can open and close the position at any time. You can open the position on the same day and close the position on the next day or the next day or even longer.
Similar to the T+1 trading pattern of stocks, that is, stocks bought today cannot be sold today, must wait until the “next” trading day to sell, while gold T+ D has no limit on D.
The “T” in gold T + D is the first letter of Trade, and the “D” is the first letter of Delay.
In formal terms, gold T + D refers to standardized contracts that are uniformly formulated to deliver a specified amount of a subject matter at a specified time and place in the future.
Gold T + D features: to buy and sell in installments, traders can choose the same day delivery, can also be indefinitely deferred delivery.
The content of gold T + D contract includes: contract name, trading unit, quoting unit, minimum price change, maximum daily price fluctuation limit, trading time, delivery date, delivery grade, delivery place, minimum trading margin, transaction fee, delivery method, transaction code, etc.
The Annex to the Gold T + D Contract shall have the same legal effect as the Gold T + D Contract.
The gold T + D market is the market for buying and selling gold T + D contracts.
This kind of trading is participated by the producers and operators who transfer the risk of price fluctuation and the risk investors who profit from the price risk. It is conducted in fair competition according to law in the exchange, and is guaranteed by the margin system.
A notable feature of the margin system is to use less money to do larger trading, the margin is generally 15% of the value of the contract, compared with stock investment, investors in the gold T + D market investment capital is much smaller than other investments, commonly known as “small bet big.
The purpose is not to obtain physical goods, but to avoid price risk or arbitrage, generally do not achieve the transfer of ownership of goods.
The basic function of gold T + D market is to provide producers and operators with means of hedging and avoiding price risks, and to form fair prices through fair and open competition.