ASIC and NFARegulated by ASIC and NFA
Encyclopedia

What is the skill of personal investment in gold futures?

Post Time:2020-01-07 10:24:01  By:BG

  If you want to invest in gold futures, you must first understand what gold futures margin is, some investment skills of gold futures, and other related knowledge.
 
  Gold futures refers to a futures contract that uses the gold price at a certain time point in the future in the international gold market as the trading standard. The profit and loss of investors when buying and selling gold futures is based on the price difference between the two times of entering and leaving the market. After the expiration of the contract, it is the delivery of physical goods. The real-time market change is the actual leverage ratio of gold futures to see, most of which is one to ten to one to eight. If there is an extreme market, each company will also increase, and the proportion is not the same.
 

 
  Before trading gold futures, a trader should open an account with a broker. The trader signs the relevant contract with the broker, and accordingly undertakes an obligation to pay the margin. If the transaction fails, the broker has the right to close the position immediately, and the trader shall bear the relevant losses. When traders conduct futures trading, they don't need to pay all the contracts, but only need to pay the margin as the guarantee of the broker's operation. Generally, the margin is about 10% of the total amount. The contract will eventually be delivered in kind or closed in reverse before maturity.
 
  Generally speaking, margin is divided into three levels. The first is primary. This is the minimum margin that a broker requires a client to pay for a contract at the start of a transaction. The second is the long term. This sometimes needs to be added by customers, and it is also the amount of reserves that customers always have. The best money is what brokers demand when the market moves in the opposite direction of trading. If moving in the other direction, the proceeds may be requested by the dealer or used for other purposes. The third is contingency and profit and loss. The margin paid by the clearing client to the clearing institution offsets the loss caused by the change of the price trend of the client in the transaction.
 
  After knowing the specific situation of margin, let's learn how to invest in gold futures? For individuals, the investment experts of futures companies recommend to select a suitable futures brokerage company, and then handle the relevant account opening procedures. Of course, there are several steps from account opening to formal trading.
 
  First, investors should bring their ID cards and bank cards to the company for free. Second, understand the market and trading software provided by the company. Third, the money can be operated.
 
  Experts remind investors to pay attention to all terms when signing contracts, so as not to affect the normal futures trading. After the investor has a capital account number, he can enter the deposit for opening an account into it, and then he can start trading.
 
  Before investing, investors must know some relevant knowledge, accumulate experience and make some small attempts.


BGNote: all opinions, news, research, analysis, prices or other data in this article are for general market commentary only and do not constitute investment advice. This site will not bear any loss or damage that may be caused by the direct or indirect use or reliance on the above data, including but not limited to any profit loss. All investments involve some degree of risk.