Long means that the investor predicts that the price of gold will rise, so he buys the gold contract and waits for the price to rise before selling to close the position. Short selling refers to investors who predict that the price of gold will fall, so they sell the gold contract and wait for the price to fall before buying to close the position.
It should be noted that two-way trading and long and short trading require investors to have certain market judgment and risk control capabilities. At the same time, investors also need to understand the relevant trading rules and risk control measures when trading spot gold to ensure their own investment safety and stable returns.
In addition, when trading spot gold, investors also need to know the following points:
1. Leverage ratio: Spot gold trading usually adopts a trading mode with a high leverage ratio, and investors need to understand the size of the leverage ratio and its impact on investment risk.
2. Trading hours: The trading hours of the spot gold market are usually long, and investors need to understand the opening and closing times of the market in order to arrange their trading plans reasonably.
3. Price fluctuations: The price fluctuations of the spot gold market are relatively drastic, and investors need to understand the fluctuations of market prices and their impact on investment income.
4. Risk management: Investors need to formulate a reasonable risk management strategy when trading spot gold, including controlling positions, setting stop-losses and other measures to reduce investment risks.
