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What is the difference between spot and futures gold?

Read: 20972 2019-04-16 15:36:00

What is the difference between spot and futures gold? There are specific differences in the following aspects:


Gold spot and futures one of the differences: different concepts


Gold spot: gold spot also known as the international London gold, London gold is not a physical gold, but a way of gold trading name. Gold spot is only a virtual book transactions, not physical delivery, can not extract physical gold, investors just earn gold price fluctuations through trading. London gold is priced in dollars and measured in British ounces.

Gold futures: gold futures belong to a variety of futures. The so-called futures refer to futures contracts, which are standardized contracts formulated by futures exchanges and stipulate delivery of a certain number of subjects at a specific time and place in the future. Gold futures, it is to point to the futures contract that trades mark with the gold price of some point in the future of international gold market namely, the profit and loss of investor buying and selling gold futures, it is the price difference of gold price that enters appear two times by come to measure, after contract expires, it is physical delivery.


What is the difference between spot and futures gold? Gold spot and futures distinction two: different trading rules


Spot gold is traded by market makers, and investors can buy or sell it at any time they want. However, gold futures are matched trading, and delivery may not be available when the big market comes, which to some extent increases investors' risk indefinitely.


What is the difference between spot and futures gold? Gold spot and futures distinction three: leverage ratio


Spot gold leverage ratio is 1 to 100, as long as the deposit of $1000 can do a first-hand trading, but futures need much more money, capital demand is large, the corresponding risk is big.


What is the difference between spot and futures gold? The distinction of gold spot and futures 4: trade time is different


Spot gold is made up of us, Asian and European trading markets. Its trading time is 24 hours around the world, and investors can trade at any time of the day. But futures have a trading time limit, the domestic Shanghai gold futures trading time just missed the most volatile gold prices in Europe and the United States when the timing.


What is the difference between spot and futures gold? Above is gold spot and futures a few distinction namely. Through the difference and comparison of gold spot and futures, it can be found that spot gold is more dominant than gold futures in investment. More on gold spot and futures


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