What is the difference between stocks and spot gold?

1. Stocks can only be long, not short. In other words, you can make money only when stocks rise, but not when they fall. You can make money whether spot gold rises or falls.

2. Stocks have no leverage. You can only buy 1,000 yuan worth of stocks for 1,000 yuan. Spot gold has 100 times leverage, which can amplify funds 100 times and magnify returns.

3. The stock market is in the domestic market, which has bookmakers, while the spot gold market is in the international market. Due to the huge trading volume, there are no bookmakers in it, and the market is fairer.

4. The stock market has information asymmetry. Some people always get the information first. Retail investors are always at a disadvantage due to information asymmetry.

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What is the difference between futures and spot gold?

Futures are in the domestic market. Like the stock market, there are bookmakers and information asymmetry. Retail investors are in an extremely disadvantageous position. In addition, the trading time of futures is very short, usually 4 hours, gold T+D trading time is 10 hours.

There is no bookmaker in spot gold, it is traded 24 hours a day, and there is no need for delivery and settlement. Instant transaction. Funds arrive instantly.

What is the difference between spot margin trading and futures margin trading?

Gold spot margin trading is represented by the London spot market. It does not have a fixed trading place. The five major gold merchants in London (Luo Fuqi, Jinbaoli, Wandaji, Wanjiada, and Max Pacific) participate in the global market When an investor buys gold, he only pays a certain proportion of the spot deposit, and the remaining payment is similar to a loan from a bank, so he has to pay a certain proportion of interest on a daily basis. Interest can also be interpreted as the opportunity cost loss of gold merchants.

Gold futures margin trading is represented by the New York Mercantile Exchange and the New York Mercantile Exchange in the United States. There are fixed trading venues. The transaction object is not spot gold itself, but a standardized gold sales contract, agreeing on both parties to the transaction. Physical delivery of gold at an agreed price at a specific time in the future.

Is the gold deferred settlement transaction launched by the Shanghai Gold Exchange also a margin business?

This is also a margin trade, but it is only for its members. This kind of margin trading is different from London spot margin trading and US futures gold margin trading. It is a spot gold trading. Different from the London spot market, it has a fixed trading place and only acts as a trading medium for investors to facilitate transactions between investors. The exchange itself is not involved in gold buying and selling. Different from the U.S. futures market, the trading subject matter of U.S. gold futures is a standardized gold purchase and sale contract, while the gold deferred settlement of the Shanghai Gold Exchange is a gold spot transaction

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