What are gold futures? How does it compare to spot gold?

Gold has always been a popular investment product. There are a variety of gold products in the investment market, such as futures gold and spot gold, etc. Many investors want to invest in high-yield gold products, but they don’t know how to choose when faced with so many gold products. , Let me tell you what gold futures are? How does it compare to spot gold?

What are gold futures?

When buying and selling gold, there is a delivery date. When it expires, it must be delivered. If it is not delivered, the position will be forced to liquidate. Gold futures can be long or short, which is more flexible than one-way trading of general stocks. At the same time, gold futures are traded 24 hours a day, allowing ample investment time. In addition, gold futures also contain leverage, which can improve investor returns to a certain extent.

Are gold futures and spot gold similar?

Gold futures and spot gold are indeed very similar. As mentioned above, spot gold can also be traded in both directions, 24 hours a day, and there is leverage. But there is an obvious difference between the two, that is, futures gold has a delivery period, while spot gold has no delivery period. From this perspective, spot gold investment will be more flexible.

Which product is better to choose?

Each product has its own advantages. Investors can choose according to their own needs. If they want to trade more flexibly and gain more income, they can consider spot gold. To invest in spot gold, you can choose a price-limited platform to open an account, which can reduce the investment risk of leveraged products. The price limit platform promises that there will be no slippage and will trade in strict accordance with the set price to eliminate the risk of slippage and allow investors to control the loss range.

Further reading

What is the difference between gold spot and gold futures? Which is more suitable for investors?