Da Tian Trading Platform: What is Gold Speculation and Overexposure?How to reduce the risk of liquidation?

Stir frygoldThe biggest difference from most investment products is that spot gold contains leverage, which increases returns and amplifies losses. Once there is a situation of a bearish rise against the trend, the losses will be expanded, and the lost funds may be greater than the account funds. If such a situation really occurs, who will pay for the outstanding funds beyond the account funds, whether it is advanced by the platform or forced by the platform to remind investors to repay, it will increase the operating costs of the platform. To safeguard its own interests, the platform has set up a liquidation line. Today, I will talk to you about what is gold speculation and short selling?How to reduce the risk of liquidation?

　　1What does it mean to stir fry gold and sell out positions?

Gold speculation refers to investors being forced to close their positions by the platform. The majority of platform liquidation conditions are when the net asset value of the account is below20%When providing margin, the platform will force investors to close their positions.

　　2What trading habits can easily lead to short positions

Frequent trading can easily lead to short positions. As is well known, the biggest trading cost of spot gold is the spread fee. If the transaction1The cost of hand difference is50USD, transaction200Hand, the difference fee is10000US dollars. When the trading direction and gold price change direction are different, investors incur huge losses, coupled with high spread fees, the probability of investors selling out increases. Heavy position operations can easily lead to liquidation, which generally refers to trading funds exceeding total funds30%。

　　3How to reduce the risk of liquidation?

Spot gold contains leverage, and the price of gold fluctuates violently. Once it goes against the trend and falls short, platform sliding trading will result in huge losses. Uncontrollable sliding point risk increases the probability of liquidation. In order to reduce investment risk and minimize losses at the sliding point, investors can choose to trade on the limited price platform Datian Global. Why can price limit platforms eliminate the harm of sliding points?Because the price limit platform promises no slippage and strictly trades at the prices set by investors.

Gold speculation involves leverage, margin trading, and the risk of liquidation. In order to reduce the risk of liquidation, investors need to ensure that their accounts have sufficient funds. Specifically, in trading, it is important to operate with a light weight to avoid blind trading. Additionally, a price limit platform can be chosen to eliminate the risk of slippage.