What is the difference between gold spot and gold futures?
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.
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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