What is the Margin of Gold Trading?

Gold margin trading refers to the gold trading business, the market participants do not need to the full amount of the gold traded funds transfer, only according to the total amount of gold trading to pay a certain percentage of the price, as the gold physical settlement of the performance guarantee.

World gold trading, both gold futures margin trading, also has gold spot margin trading.

Margin trading, also known as virtual disk trading, according to the gold trading, that is, the investor with their own funds as a guarantee, from the bank or broker to provide financing to amplify to spot gold trading, that is, to amplify the investor's trading funds. The size of the proportion of financing, generally decided by the bank or broker, the larger the proportion of financing, the less money the customer needs to pay. The international financing multiplier is also called leverage. Example: the market standard contract for each lot of 100,000 yuan, if the broker to provide the leverage ratio of 20 times, the purchase and sale of a lot of 5,000 yuan of margin; if the leverage ratio of 100 times, the purchase and sale of a lot of 1,000 yuan of margin.