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How about gold futures investment? What are the disadvantages?

Abstract: Gold futures refer to futures contracts that take the gold price at a certain point in the future in the international gold market as the subject of the transaction. The profit and loss of investors buying and selling gold futures is measured by the gold price difference between entering the market and exiting the market. The contract expires The latter is physical delivery.

There is no doubt that any kind of investment has shortcomings and advantages. How much do you know about the popular gold investment product-gold futures?

Those who have been following this website are no strangers to the concept of gold futures. Gold futures refer to futures contracts that take the gold price at a certain point in the future in the international gold market as the trading target. The profit and loss of investors buying and selling gold futures is from entering the market. The gold price difference between the two appearances is measured, and the physical delivery is performed after the contract expires.

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Among the many investment products, gold futures have the obvious advantage of attracting investors. The first is that its entry threshold is low; the second is the implementation of the T+0 system, which can be traded at any time during trading hours; the last is that gold futures use two-way trading, which can be bought up or down, providing investors with more possibility.

For the varieties we want to invest in, we need to have a thorough understanding of them in order to be able to get twice the result with half the effort. Rather than the advantages, we should pay more attention to its shortcomings and not fight unprepared "battles".

The first thing to note about the shortcomings of gold futures is the short trading time, because it is linked to the international gold price, which often results in a daily limit or a daily limit at the opening. It is precisely because of this that the second "disadvantage" is brought out: the risk is high, and if there is a chance of earning 20,000 yuan, there is the possibility of losing 20,000 yuan.

The other is that investment platforms are hard to find; futures companies hardly do any advertising and have never set up locations in banks.

In addition, gold futures contracts have different standards for trading margins at different stages of their listing operations. The time of entering the market determines the level of the margin ratio. If investors do not pay attention to the margin call during operation, it is easy to be liquidated. If you do not choose to close your position before maturity, physical gold must be delivered at maturity, which is not what ordinary investors are willing to choose.

It is mandatory that natural persons cannot make physical delivery of gold. If in the delivery month, the position of the natural person client is not 0, the exchange will execute the forced liquidation from the first trading day of the delivery month. Profits arising from forced liquidation shall be dealt with in accordance with relevant state regulations, and losses arising from forced liquidation shall be borne by the person responsible.

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