Financial Sharing

What is gold futures?

June 17, 2020

Generally speaking, the buyers and sellers of gold futures sell and buy back the same number of contracts as the previous contracts before the expiration date of the contract, that is to say, close positions, without real delivery of real gold. The profit or loss of each exchange is equal to the difference between two contracts in the opposite direction. This kind of business is what people usually call “speculation”. Gold futures contracts only need about 10% of the transaction amount of the deposit as the investment cost, which has greater leverage, a small amount of funds to promote large-scale transactions. Therefore, gold futures trading is also called “deposit trading”.

Most of the gold futures markets in the world basically have similar trading contents, mainly including margin, contract unit, delivery month, minimum fluctuation limit, futures delivery, commission, daily trading volume and commission order.

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