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What does a precious metal company do?
Precious metal companies generally trade precious metals, mainly in cash. Varieties generally include crude oil, gold, silver, copper, aluminum, platinum and nickel. There are relatively many silver transactions in crude oil. At present, there is only one formal platform in China that can trade spot gold.

Inventory, also known as physical objects, refers to physical objects that can be shipped, stored and manufactured. The spot available for delivery can be converted into cash in the near future or in the long term, or the payment can be made in advance, and the buyer pays the payment in a very short time, which is the symmetry of futures.

Characteristics of spots:

1. Standardization of electronic transaction contracts: The standardization of electronic transaction contracts means that all the terms except the price in the contract are specified in advance and have the characteristics of standardization. Once this standardized electronic transaction contract is registered, it becomes a warehouse receipt.

2. Two-way transaction: refers to investors buying warehouse receipts at low prices and selling them at high prices, thus making profits; You can also sell at a high price, buy at a low price and make a profit. Trading methods are more flexible and increase trading opportunities.

3. Hedging mechanism: Hedging mechanism refers to the reverse operation of electronic contracts, thus releasing the performance responsibility.

4. Same-day settlement system: check the accounts of investors every day to avoid debt disputes and achieve the purpose of controlling risks.

5. Margin system: Margin system refers to the freezing of appropriate margin for both parties to the transaction, so as to achieve the purpose of ensuring the performance of the contract, and at the same time make the funds play a leverage role and be fully utilized.

6.T+0 trading system: the contract can be transferred on the same day, and it can be profitable on the same day, which can realize hedging and liquidation on the same day, make full use of funds, and reduce the risks brought by long positions, with flexible operation.

Investment is risky, so be cautious when entering the market.