Novice investment: which is more suitable for spot gold or futures gold?

The investment and wealth management market is quite huge. Even if it is just one investment category, there are many different products. For example, gold investment includes spot gold, futures gold, gold TD, gold ETF, etc. If novice investors choose gold investment, as the most popular spot gold and futures gold, which one is more suitable?

Lower threshold for spot gold trading

When choosing wealth management products, the transaction threshold is the most important thing to pay attention to. The lower the threshold, the lower the financial pressure. Spot gold has a leverage ratio of 100 times, which can effectively reduce the principal investment and can also magnify the income. The minimum deposit in the industry is only 30 US dollars to open a mini account and enter the market immediately. Although futures gold also has a leverage ratio, the effect of reducing investment is not obvious. At least 30,000 to 50,000 funds are still needed to enter the market. It can be seen that novice investors accumulate investment income in the early stage, and spot gold is more suitable.

Mini account ultra-low investment threshold, 30 US dollars can operate profitably

Spot gold trading rules are relatively more flexible

The more flexible the trading rules of the product, the more quickly novice investors can adapt to the market in the early stages of gold trading. Spot gold has the advantages of two-way trading, T+0 mode, 24-hour operation time, etc., and can open and close positions at any time; while futures gold can also be traded in two-way, but the trading time is shorter and discontinuous, and it also has delivery period restrictions. Investors must carry out delivery or liquidation before the delivery period. For investors who are new to the market, it is relatively complicated. Once handled improperly, it may bring the risk of loss.

Spot gold yields higher

Another factor in choosing a product is the profitability of the product. Compared with futures gold, spot gold has a higher yield, because futures gold has a rise and fall limit, the limit is 5%, while spot gold does not have a rise or fall limit, and it is possible that the market can go as fiercely as possible. As long as we make good use of the rules, we can get more profit.

Compared with futures gold, spot gold has more obvious advantages in terms of trading threshold, trading rules and yield, and it is also a better choice for beginners to enter the market. However, when investors are trading, it is best to use the price limit platform to set up take profit and stop loss, reasonably control risks, improve operational stability, and avoid slippage, in order to achieve steady gains.