Financial Knowledge

Recognize gold margin!

June 17, 2020

Au (T + 5) transaction refers to the installment transaction with fixed settlement period, which is 5 working days (including the transaction date). The buyer and the seller establish the sales contract with a certain proportion of the deposit (15% of the total contract amount). The contract can not be transferred, but can only open a new position. The net position of the due contract, that is, the position after netting the sales contract in the same delivery period, must be delivered in kind. If one party of the buyer and the seller breaches the contract, it must pay the liquidated damages of 7% of the total contract amount of the other party. If both parties breach the contract, both parties must Pay 7% of the liquidated damages to the gold exchange.

Au (T + D) transaction refers to a kind of spot delayed delivery business conducted in the form of margin. The buyer and the seller establish the sales contract with a certain proportion of margin (10% of the total contract amount). Unlike Au (T + 5) transaction, the contract does not need physical delivery, and the buyer and the seller can buy or sell the contract held in order to close the position according to the changes in the market. During the position period, the contract will be closed There is a deferred fee of 2 / 10000 of the total contract amount per day (the payment direction shall be determined according to the situation of delivery and Declaration on the same day, for example, if the customer holds the purchase contract, and the situation of delivery and Declaration on the same day is that the quantity of goods received is more than the quantity of goods delivered, the customer will get the deferred fee, otherwise, it will be paid). If the position is held for more than 20 days, the exchange shall charge an overdue fee of 1 / 10000 calculated on each trading day (at present, it is to collect first and back). If the buyer and the seller choose the physical delivery method to close the position, the contract will be converted into the full trading method. After the successful delivery declaration, if one of the buyer and the seller breaches the contract, the other party must pay a penalty of 7% of the total contract amount, if both parties breach the contract , both parties must pay 7% of the liquidated damages to the gold exchange.

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