Spot gold is also called international spot gold and London gold. It can be understood that spot gold is the world's largest stock, and its trading volume is huge. According to this year's data, the daily trading volume has reached 23 trillion US dollars.
This is a contract-based purchase and sale using the principle of capital leverage. According to the trading standards of the international gold margin contract, the trading right to purchase one hundred ounces of gold is used at the price of one ounce, and the trading right to buy and sell the 100 ounces of gold is used.
Sell down and earn the difference in profit.
The leverage ratio of spot gold is more than one to one hundred, which is an extremely high-risk investment... it should be called speculation.
The profit is magnified 100 times, and the loss is also magnified 100 times.
The risk of speculation can be controlled, as long as you can control your greed and panic... When there is an investment error, there is a saying: If you don't sell, you will lose, if you sell, you will lose. This is ridiculous, completely
That's nonsense...
Speculation is a bad thing, and everyone wants to use leverage to the limit to make more profits. Greed and panic are the weaknesses of human nature. Unless you are not human, you cannot completely control it. You can only control it.
part.
But since your bankroll is amplified…
100 times leverage is a very scary thing, and the emotions you have to control are also amplified by a large proportion.
That is to say, if you invest all the funds in your account with 100 times leverage, if the investment is wrong and the price of gold fluctuates by 0.8%, your loss will exceed 80%.
A fluctuation of 0.8% is normal in the spot gold market.
Under normal circumstances, the fluctuation throughout the day will exceed 3%.
The pursuit of extreme profits and good position control is very difficult to control because people are infinitely greedy in their hearts.
For example, with 100 times leverage, if you operate with one-fifth of your position, if it drops by 5%, your position will be liquidated in one day. Not to mention that gold may drop by 10%. This risk is very huge. However,
If you think this is the biggest risk for gold, you are wrong.
The biggest risk of spot gold is intraday real-time trading. That is to say, if you are short on gold today, gold will indeed fall at the end of the day. According to normal thinking, you should make a profit today, but in fact it is not what you think.
Simple.
Spot gold is traded in real time during the day. If there is a relatively large shock in the whole day trading, if your position is slightly heavy and there is insufficient funds, sorry, your position will be liquidated before the market closes.
Unless you make your position very light, that is, you have enough margin in your account...but you will still lose money if you should.
…
The illness comes like a mountain falling, and the illness goes away like a thread spinning.
By the time Ellie fully recovers, it will be almost June.
Jimmy, Zhou Feng and other 15 people formed a studio, which is equivalent to a small-scale unregistered hedge fund company and has begun to enter the spot gold market.
Chen Mo also learned a lot from Ai Li during this period. If the general trend of gold can be predicted, how to control the position from being liquidated and make a profit. But this thing is so heart-pounding.
Chen Mo tried 100 hands...
1 ounce of US dollars, use 100 times leverage, buy up...
"It's gone up." Chen Mo and Ai Li were in their house in Beiwan District, looking at the price of gold...
"Only a point."
Ellie leaned in Chen Mo's arms. Different accounts and spot gold trading platforms represent different values.
Chen Mo’s point here is 0.1 US dollars, which means that 1 ounce has increased from US dollars to US dollars.
A 100-fold leverage increase is $10, and with 100 lots, that is $1,000.
A fluctuation of one thousand dollars per second.
Before Ellie could finish her words, it rose another point, and then duang, duang, duang continued to rise several points...
Then the price started to go lower again, falling sharply...
Then it started to go higher again.
100 times leverage, people's inner emotions are really amplified a hundred times... plus 100 hands, it's like playing slot machines when you were young.
Chen Mo's surging funds were US$125,130, but the actual funds leveraged were US$10,000. In addition, Chen Mo still had 1 million active funds in his account.
If the price of 1 ounce of gold rises by US$0.1, Chen Mo will earn US$1,000. Because he is buying up...
When the price of 1 ounce of gold fell by US$0.1, Chen Mo lost US$1,000.
The loss and profit of 1,000 US dollars is not a matter of minutes here, but a matter of seconds.
Ai Li leaned in Chen Mo's arms and couldn't help but become nervous: "Falled again..."
Up to USD.
Now that it has fallen to the US dollar, Chen Mo is breathing nervously. In the past few minutes, he has lost US$18,000 by closing his position.
Then it went up again...
"It's been going up, it's going up, it's finally starting to go up."
The price of gold rose strongly, rising and falling in the meantime, and the price reached the US dollar.
"Close the position quickly... close the position." Ellie screamed.
"It should be able to rise again." Chen Mo looked at the 1 million activity funds in his account. With this money, he could buy hundreds or even thousands of lots.
"The position is about to be closed, look at the time."
"Okay, okay, close the position."
After closing the position, the price of gold is still rising...
"Look, it's 1,260,3 dollars."
"Miscalculation... But you have already made money. As long as you make money, you still want to make more. The consequences of being too greedy can be very serious."
Chen Mo closed his position at a price of around US$1,257 and made US$56,000 after deducting handling fees.
The amount of the position was US$125,130. Because he was afraid of being liquidated, Chen Mo added 1 million more funds to his account. If he had not added more funds, Chen Mo's position would have been on the verge of exploding due to the biggest drop just now...
A total of two hours netted $56,000.
This thing... is much better than raising cattle.
Chen Mo scratched his head, looked at Ellie who was blushing because of nervousness, and kissed her.
Ai Li still responded to Chen Mo awkwardly...
"I want a daughter."
Ellie blinked her long eyelashes lightly: "Yeah."
It was already past 7pm when he got up from bed. Chen Mo picked up his tablet and looked at it. The spot gold price had dropped again, to US$124.3 per ounce.
The changes in spot gold are also huge.
You can buy up or short. How much you make is how much someone loses. There is also a handling fee. In fact, this thing is gambling...unless it is bullish.
Ai Li lay in Chen Mo's arms, stretched out her smooth arms to take the tablet, and frowned: "The overall trend of gold prices is still falling. Although this can get super high returns, the risk is too great."
"I'm going to spend 100 million. How about you help me buy gold futures and trade spot gold?"
"One hundred million." Ellie stuck out her tongue and shook her head vigorously: "There is too much money, I dare not."
"It doesn't matter if we lose all the 100 million." Chen Mo held Ellie in his arms: "Try, we can sign a no-liability contract. Even if we lose all, it really doesn't matter."
Ellie still shook her head and shrank out of Chen Mo's arms...
The two are just boyfriend and girlfriend, not married. And even if they were married, it would involve a capital of 100 million US dollars...
When it comes to investing, no one dares to say that they are guaranteed to make a profit without losing money. Moreover, Ellie's style is extreme trading. Unlimited expansion of funds means pursuing maximum profits while also taking on maximum risks.
The capital is still small. If you lose money, you will have to start over from scratch. But with a capital of 100 million, you can't afford to lose...