Liu Jingcan: Newcomers want to invest but don't know what to choose?

Sometimes in life, the glow of a candle feels very friendly. Usually when I go to work, it's in the morning7From midnight to the early morning of the next day3Point, but in Liu Jingcan's memory, it seems that I rarely leave work on time. As long as the customer's order is still there, I stay up late until early morning6Stopping trading is a common occurrence, have you ever had it before! After staying up all night and not sleeping, it's not that I'm not sleepy, let alone insomnia. It's just that the client still has an order in their hands, struggling and wandering between being unable to leave and being short. I have been doing transactions for several years, and it can be said that I spend every night with such friends. Liu Jingcan can deeply understand your anxious heart, so I gradually got used to staying up late, getting used to writing an article during my meal time, sending help and hope to friends who are destined to see each other, even a reassuring pill. Liu Jingcan felt that this help was useful. However, sometimes I do feel helpless.
　　
[img]http://mp.myleguan.com/lf//dict_upload_file_module_3/20190924/jpg/23323635307904150r99377.jpg[/img]


What are the obvious differences between spot gold and futures gold?Spot gold and gold futures have similarities in terms of margin and leverage ratio. But there are also many differences. Liu Jingcan will briefly introduce the differences between spot gold and gold futures.
　　
　　[color=#ff0000][b]What is the difference between gold spot and gold futures?[/b][/color]
　　
Difference 1: Concepts
　　
The so-called gold futures refer to futures contracts based on the future price of gold at a certain point in the international gold market. The profit and loss of investors buying and selling gold futures is measured by the price difference between the entry and exit times, and physical delivery occurs after the contract expires.
　　
Spot gold refers to physical delivery, such as gold bars, coins, and so on. And spot gold is just a virtual book transaction, without physical delivery. On your passbook, it reflects how many grams of gold you have, which is just an accounting symbol and cannot be used to extract physical gold. It only earns the price difference through buying and selling. The former can maintain and increase value, but it takes time. It's not safe to keep gold bars at home, so you can rent a safe deposit box at the bank. The latter, as it does not involve physical objects, does not pose any safety hazards, but it is also important to grasp the market situation during trading.
　　
Difference 2: Trading Time
　　
Trading time: Spot gold is composed of Asian, European, and American markets, and its trading time is all day long24During the hour, investors can trade at any time throughout the day. However, futures have trading time limitations, and in China, the trading time of Shanghai gold on the Shanghai Stock Exchange happened to miss the early stages of the most volatile gold prices in the European and American markets.
　　
Difference 3: Trading Rules
　　
Trading rules: Spot gold is traded by market traders, which means that you can smoothly facilitate trading at any time you want to buy or sell, but futures are matchmaking trading. When the market is approaching, there may be situations where delivery cannot be made, which to some extent increases the risk for investors infinitely.
　　
Difference 4: Leverage ratio
　　
What is the leverage ratio of spot gold1than100As long as you hand it over1000A margin of US dollars can be used for first-hand trading, but the funds required for futures are much larger, and the demand for funds is greater, resulting in higher corresponding risks.
　　
After you understand the difference between gold futures and gold spot, I believe those who have foresight in investing in gold will realize these points. Spot gold is better than gold futures in terms of game rules, and spot gold is an international trade with a history of hundreds of years abroad. However, gold futures in China are traded from02For those listed on the Shanghai Stock Exchange in, the supervision in various aspects is not yet very strict, and the market is not yet very mature, which to some extent amplifies the risks.
　　
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　　[color=#ff0000][b]What are the advantages and disadvantages of spot gold and futures gold respectively[/b][/color]
　　
In fact, Liu Jingcan believes that the main difference between spot gold and futures gold is this: futures gold operates in the domestic market, similar to the stock market, where there are market makers and there is also information asymmetry. Retail investors are in an extremely disadvantaged position, and the trading time of futures is very short, usually4Hours. There is no banker in the spot gold, every day24Hour trading, there is no need for delivery and settlement. Instant transaction. The funds will be received immediately.
　　
　　[color=#ff0000][b]Advantages and disadvantages of spot gold compared to futures gold:[/b][/color]
　　
Transaction mechanism:
　　
Futures gold: With a short selling mechanism, it can be traded in both directions for profit, and there are profit opportunities in both up and down markets.T+0Trading system. Multiple positions can be opened and closed on the same day, but there is a delivery date and delivery must be made upon expiration. Otherwise, the position will be forcibly closed or physical delivery will be made. At the same time, when the margin is insufficient, it will also be forcibly liquidated.
　　
Spot gold: With a short selling mechanism, it can be traded in both directions for profit, and there are profit opportunities in both up and down markets.T+0Trading system. Multiple positions can be opened and closed on the same day, with no delivery restrictions and unlimited holding. But when the margin is insufficient, it will be forcibly liquidated.
　　
Transaction funds:
　　
Futures gold: margin trading. use10%The funds can be used for100%Trading and capital amplification10Times.
　　
Spot gold: margin trading. According to the different magnifications of various gold companies, there may also be differences, but most can use1%The operation of funds to100%Gold,100The magnification ratio is calculated by hand, for example;1Standard hand=100Ounces, some platforms can do it0.1Hands, etc.
　　
[img]http://mp.myleguan.com/lf//dict_upload_file_module_3/20190924/jpg/23323687050849716r70586.jpg[/img]


After reading this article written by Liu Jingcan, I believe you should also have your own judgment. So, Liu Jingcan wishes you all the best in advance for your investment.
　　
Wen/Liu Jingcan（QQ：2747672046）