Analysis of Gold T+D Trading
2023-09-01
Summary:
Explore the intricacies of T+D gold trading, including market analysis, trends, and tips for successful trading strategies with EBC's comprehensive guide.
Gold T+D trading refers to a standardized contract established by the Shanghai Gold Exchange that stipulates the delivery of a certain amount of subject matter at a specific time and location in the future. T+D is the abbreviation for "buy today, deliver tomorrow", which means that investors can buy gold contracts on the same day, where T represents the trading day and D represents the delivery day, but the actual delivery will take place on the second trading day.
Gold T+D trading is a type of floor trading that involves buying and selling on an exchange to obtain the price difference for gold. Investors can open trading accounts through Securities or futures companies and then buy or sell gold contracts during trading hours. The contract size for gold T+D trading is usually 100 grams or 1 kilogram, and investors can choose the appropriate contract size according to their own needs. The essence is to trade gold through futures contracts. Investors can purchase or sell gold T+D contracts on the exchange, which represent a certain amount of gold. During the trading process, investors can earn profits through price difference trading, which means buying at a low price when buying a contract and then selling at a high price when the price rises.
Characteristics of Gold T+D
Flexible trading time
Monday morning from 08:50 to 11:30
From 09:00 to 11:30 am on Tuesday to Friday.
From 13:30 to 15:30 pm from Monday to Friday.
Monday to Friday from 20:00 to 02:30 pm (early morning).
Excluding national statutory holidays.
Diversification of transactions
There is a short-selling mechanism, so there is no need to worry about funds being trapped.
Gold T+D trading risk
Leverage risk
The gold TD margin management system allows investors to intervene in the market at a low cost and quickly profit if they see the right direction. However, the fund amplification function not only amplifies returns but also doubles risks.
Compulsory closing risk
The Shanghai Gold Exchange and commercial banks that handle precious metal business must settle on each trading day. When the margin is less than the prescribed ratio, investors' positions will be forced to close. Especially in the current domestic gold T+D market, the market size is still small and has not yet aligned with international prices. A small amount of funds entering the market may affect the price trend, resulting in greater volatility and investment risks.
Gold T+D trading provides investors with a convenient, flexible, and highly liquid way to participate in the gold market. Investors should be aware of the risks involved in this type of trading and should not act recklessly without a plan. Only actions can be taken without a plan.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
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