As a popular investment and financial management method in the market, gold futures trading has the characteristics of both high risk and high return. Gold futures trading risks also exist, so what are the common gold futures trading risks?
Risks of gold futures trading 1. Market risk
Investors in gold futures trading, the main risk comes from the fluctuation of market price. Such price fluctuations bring clients the risk of trading profits or losses. This risk is magnified because of leverage.
Risks of gold futures trading II. Risks of policy changes
When policies or rules are adjusted, investors will face certain risks. For example, when the market of a certain product fluctuates greatly, the exchange will appropriately adjust the margin ratio of the contract of this product, which may bring certain capital adjustments to customers. pressure.
Risks of gold futures trading III. Platform risk
If mainland investors want to participate in the international gold futures trading market, they need to complete capital in and out and all operations through the gold futures trading platform. If the platform is not chosen carefully, it will easily lead to the loss of funds and cannot be recovered. Therefore, it is very important to choose a reliable gold trading platform.
When investors are not sure how to choose a platform, they can refer to the typical characteristics of the Doo Prime platform: strict supervision, separation of customer accounts, stable trading environment, perfect customer service, and rich trading varieties.
Gold Futures Trading Risks 4. Trading Environment Risks
Due to technical equipment, network lines, power supply conditions, etc., the transaction entrustment function cannot be used or delayed, and the transaction system is busy and slow due to the large number of transaction orders, which will bring indirect risks to customers.
Risks of gold futures trading V. Risk of forced liquidation
When the price of the gold market fluctuates greatly and the margin cannot be replenished within the specified time, the trader may face the risk of forced liquidation. Therefore, customers should always pay attention to their financial status when trading.
Risks of gold futures trading 6. Risk of income fluctuation
The gold market is changing every moment, and your trading income will follow the market fluctuations, earning income or bearing losses. If there are some special factors in the world, the investment is likely to suffer losses.
Gold futures trading risk VII. Leverage risk
Excessive guaranteed leverage ratio is more likely to cause liquidation. Some traders think that a larger ratio means that they need to invest less money in the futures gold trading market, so they blindly choose those trading platforms that can provide a high ratio, but they do not know that the larger the trading leverage, the easier it is Traders suffered from liquidation in the violent market fluctuations. Therefore, the greater the leverage ratio, the greater the pressure on people to take risks.
Gold Futures Trading Risks 8. Operational Risks
In the entire gold investment market, people need to make more scientific position management in order to efficiently avoid the risk of liquidation mentioned above. This puts forward relatively high requirements on people's trading ability and planning. If traders cannot control the scale of their investment transactions well, they will fall into a vicious circle of trading losses.
Fully understanding the content of gold futures trading risks can help investors fully understand trading products and help investors formulate more reasonable trading plans.