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HomeGoldWhat is spot gold leveraged trading?

What is spot gold leveraged trading?

The so-called ” spot gold leverage” means that the customer pays a certain amount of option fee to the bank and buys a margin contract ( gold bullish dollar put option or gold bearish dollar option ) that expires within one month according to his own judgment on the future change of international gold price . Call option), on the expiration date of the option, the customer has the right to buy or sell paper gold at the specified face value from the bank at the agreed price . Customers can obtain unlimited profit space with limited investment and small and broad.

  1. How to understand the leveraged trading of spot gold?

Spot gold leveraged trading is a contract-based spot gold transaction that utilizes the principle of leverage . Simply put, it is margin trading. According to the real-time market conditions of the international gold market, the two-way transaction of leveraged investment is carried out through the Internet. The flexible two-way transaction of investment means that investors can buy gold to go up or to buy gold to go down, so that regardless of the trend of gold prices, investors can There is always an opportunity to profit. Online trading platform, convenient, fast and accurate. The transaction method of T+0 is adopted.

The leverage ratio of spot gold is about 1:100. No time limit, T+0 form, 24-hour trading, two-way buying up and down trading mode, small capital, using 1-10% of the total capital to do the work, the remaining capital is anti-risk, and you can set the profit and stop at the same time damage.

  1. Features of spot gold leveraged trading

Spot gold leveraged trading means to enlarge the investment funds. For example , if the price of gold is $600/ounce, you need $60,000 to buy one lot (one lot is 100 ounces). If you use margin trading, you only need to pay a margin of $1,000. That is, the margin of $1,000 is actually $60,000. trading rights. At this point, the profit is magnified. Equivalent to 60 times magnification.

In addition, spot gold trading is not limited by time. It can be traded at any time within 24 hours and can be cashed at any time. It is guaranteed that customers can cash out in the case of winning funds. There are no disadvantages such as difficulty in trading and guaranteed liquidity.

  1. Risk of spot gold leveraged trading

As for whether there is risk, as an investor, I believe that many people understand that there is risk in investment, but this risk control is in the hands of the investor, that is, the risk is controlled according to the investor’s own wishes, which is also Important features of spot gold trading.

Therefore, investors should set the amount of losses they can bear according to the online trading platform. When the judgment is wrong, the system will automatically close the position at the set amount to strictly control the risk. If you invest 100,000 in one hand, but the controllable loss is within 1,000 yuan, or within a percentage of the principal, there is no problem of capital lock-up, and it is easy to control the loss.