How to understand gold

Spot gold, also known as London gold, is named after its earliest place of birth in London.

The London gold exchange is often called the European gold exchange.

Represented by London Gold Exchange Market and Zurich Gold Market.

Investors' transaction records are only reflected in the "gold passbook account" opened by individuals in advance, and there is no need to withdraw physical gold, which saves the steps of transportation, storage, inspection and identification of gold, and the difference between the buying price and the selling price is smaller than that of physical gold.

There is no fixed place for this kind of gold trading. In the London gold market, the whole market is composed of the interconnection between major gold merchants and their subordinate companies, and transactions between gold merchants and customers are conducted by telephone and telex. In Zurich gold market, the three major banks buy and sell for customers and are responsible for settlement.

London's top five gold merchants: Luo, Wang Daji, Wan Jiada and Meisi Taiping.

The three major banks in Zurich: UBS, Credit Suisse Bank and UBS.

The confidence of traders is based on the top five gold merchants in London and the top three banks in Zurich.

Second, the investment feasibility

● Main uses and characteristics of gold

1. Used as international reserve.

2. Value preservation function

3. Hedging function is the best weapon to deal with inflation.

4. Used as jewelry decoration

5. Application of industrial technology

6. Internationally recognized mortgage varieties facilitate the transfer of property rights.

● World gold market

The gold market has developed into an uninterrupted international market, trading 24 hours a day.

III. Description of the transaction

1, quality grade: refers to gold products with a purity of 99.99% and a price of 3 1. 1g/oz, which are settled in US dollars.

2. Quantity: the trading quantity is a multiple of 100 ounces (1 hand) of gold products.

3. Price: subject to Dow Jones Moneyline real-time gold quotation.

4. Handling fee: fixed 50 USD/lot (one-way charge)

5. Transaction unit: 100 ounce/hand.

6. Margin transaction: 1000 USD/lot.

7. Trading hours: every Monday to Thursday from 7:30 am to 3:30 am.

Every Friday morning from 7:30 to 2:30.

Fourth, the characteristics of international spot gold

1.T+0。 T+0 trading rules: allow closing positions on the same day and allow investors to trade multiple times.

2. Leverage of funds: placing orders through the margin mode improves the utilization rate of funds and lowers the trading threshold. With small Boda: 20,000 yuan to open an account can fry 2 million gold. The risk is small and easy to control. The daily fluctuation of gold is generally 8 to 15 USD, and the profit margin is large.

3. Quotation: directly based on the most advanced American Dow Jones webstation real-time quotation system, priced in USD/oz, quickly and intuitively reflect the latest gold price and related trends.

4. Trading time: 24-hour trading time, covering the European and American markets with the largest trading volume, increasing profit opportunities. The trading time is relaxed, the trading method is convenient, and it does not conflict with the working time and place, which is especially suitable for working people.

5. Short-selling mechanism: No matter whether the general trend is up or down, there is a chance to enter the market to make a profit.

6. Transaction method: the transaction is quick and convenient, and easy to learn. Customers mainly use the online trading system to place orders, or they can place orders by phone. The company also provides market analysis system and SMS quotation platform.

7. Open market: The international spot gold market is open to the whole world with high transparency, and the daily trading volume is close to 2 trillion US dollars, so it is difficult to have a banker. The price trend is less affected by human activities, with strong analyzability and low overnight risk.

8. Unique variety: there is no need to choose from thousands of stocks like stock selection, and professional analysts provide long-term consistent market analysis every day.

9. High security: relatively safe, usually only need to pay more attention to international political and economic trends, the information is open and transparent, it will not be manipulated, and the investment risk is small. Gold is a hard currency, and it is bound to rise in the long run, so it has always been and probably will always be a way to preserve value, and the currency may depreciate because of inflation.

10. Less tax: the international spot gold market has the lightest tax burden.

5. How to understand two-way trading?

The price of gold rose from a low of $534 in March 2006 10 to a recent historical high of $730 in May 12, and then plunged to $542 in just one month. In the previous rally, many paper gold investors were attracted by the dazzling performance of gold prices, flocked to buy, and were locked in a high position. Only a few investors were lucky enough to "escape" in time. However, investors who invest in Loco-London gold can take advantage of the "crazier decline"-if they short at $850 and close their positions at $800, they will get a profit of $50-the same as buying at $800 and selling at $850.

This shows the charm of the "short selling mechanism"-there are also profit opportunities when prices fall. We all know that there is no geopolitical tension, and the impact on gold is only a short-term gold margin transaction. That is to say, in the gold trading business, market participants do not need to transfer the full amount of funds for the traded gold, but only need to pay a certain proportion of the price according to the total amount of gold transactions as a performance guarantee for the physical delivery of gold. Gold margin trading, because of a certain proportion of financing leverage, greatly improves the efficiency of the use of funds, does not need to occupy a lot of funds, and reduces the financial pressure of market participants. At the same time, it also hides great risks. Once the transaction is blindly expanded, mistakes in decision-making will lead to great losses.