Spot gold trade is a contract trade by using leverage. According to the trade standards of international gold margin contract, it is a trade that can buy 100 oz gold with one oz' price. To buy up or down by using this kind of trade and to gain profits from the spread. Physical gold can be taken by making up the difference prices. The minimum amount is 100 ounces.
Characteristics of spot gold trade
1. Large fluctuation in price: The quotation is made according to international gold market conditions and practice. Influenced by international political, military, economic, supply and demand factors, and kinds of emergency, the price often fluctuate markedly. However, the profits can be taken from the floating price.
2. Long trading hours: According to different situations, each company has a different trading hours. The maximum trading time is 22 hours, covering trading hours of the major international markets. The trading hours is from 08:30 on Monday to 02:30 on Saturday during summer time and from 08:30 on Monday to 03:30 on Saturday during winter time.
3. Real time settlement: adopt T+0 trading rule. Complete a transaction on the same day. Inventors can make transactions many times if the market trend allowed.
4. Convenient transaction, easy operation: mainly use the online trading system to place orders or entrust via telephone. The trading software is easy to learn. Market analysis system and market analysis report are also provided.
5. Two-way trade: Gold price up, going long, take profits; price down, going short, also take profits. (one-way trade in stock)
6. Controllable risks : set a stop-profit/stop-loss, or place limit orders, in order to take profits and control losses.
7. Leverage: The margin bas been magnified by 100 times in trading, which improve utilization ratio of the funds, and lower the trade thresholds.
8. No market maker Control:Invest in the international market but not listed corporations. The daily trading volume is very large and no organization can control and no one can be the market maker .
9. Low transaction fees.