Sunday, December 26, 2010

How to carry on the gold investment?

Gold option is the bank introduced a gold derivatives, gold options trading with less investment income and can lock the big risks. As long as the option to pay a premium to the contract can get the right buying and selling gold. Gold option contract is provided by pre-agreed price, the right to limit sale of gold. It is divided into the gold call and put options gold options.
For example: February 23, 2009, Mr. Wang on the red several times in the gold price $ 1,000 / oz unsuccessful cases, the decisive call to buy U.S. dollars, gold put options, face value of 10 ounces, the Agreement price of $ 988 / ounce, pays the premium $ 186.80. Means that the expiration of March 6, such as the gold price is lower than 988.00, Mr. Wang sold to the bank. Maturity, the price of gold fell to 916.20 U.S. dollars / ounce. Zhang exercise the option to buy $ 916.20, $ 988.00 10 ounces of gold sold, net income after deduction of option costs $ 531.20, net rate of 284.30 percent.
V. Gold T + D: T + D Gold called "gold standard futures." It margin transactions. Can be characterized by a small broad, there are short-mechanism, which first sold at high prices, low prices and then buy in the open make the difference. Gold T + D products, but a huge risk, small investors need to be careful intervention.

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