What is a Bullion Market?
Loco London Gold is a trading contract that plays an important role in international trading and settlement of the global gold bullion market. Most over-the-counter trades are cleared through the London bullion market clearing system.
The origin of Loco London gold is rooted within the second half of the nineteenth century, as London was developing as the centre from which gold based in California, South Africa and Australia were refined and then sold.
Hong Kong is the largest bullion market exchange centre based in Asia, with representative authority for Loco London bullion. With further expansion in 2013, the Chinese Gold and Silver Exchange Society (CGSE) is the largest and most liquid authoritative regulatory body within Asia.
Any company who wishes to become a group member of the CGSE undergoes strict scrutiny and periodic qualitative reviews. When investors choose a broker, they should research CGSE members for a comparison to evaluating a suitable broker that will complement their investment needs.
Advantages of Investing in Loco London Bullion
1、Minimum Margin Requirements
As traders can trade bullion on margin through a broker, the amount of funds required to sustain a trade position is limited to the margin requirement set by the broker. This allows market opportunities for an investor to take advantage of price movements by comparing various brokers based on their margin requirement.
The global bullion market has a trade volume above $100 billion USD per trading day. This amount of liquidity based on the number of OTC contracts traded between counter-parties, and contracts traded through commodity exchanges, means that price manipulation is extremely difficult.
Unlike stocks or bonds, London Loco bullion can have positions that are either long or short the market price. This means that a client can hold a contract position to buy or sell the market. Furthermore, the client does not have to borrow a position to short the market. Shorting the market creates more investment possibilities for the client. Regardless if the market goes up or down, the client may have the opportunity to profit if a correct position is made.
4、24-hour Market Trading
The gold market is an international market which has an effective trading time that is 24-hours throughout the trading week.
5、Lack of Product Complexity
Compared to stocks or other future contracts; Loco London bullion doesn’t not have the inherent complexities of product manipulation that can be found with corporate bonds or stock options. This allows investors the opportunity to focus simply on their respective risk management with respect to their investment strategy.
6、Short Fund Settlement Time
Cumulative transactions are allowed within a day to improve the ratio of investment funds and increase the probability of return on investment.
All contract trades conducted through a group member of the CGSE will have to be recognized and approved by the CGSE. Once a transaction has been approved, a unique transaction code will be given to prove the relevant trade was performed through an approved CGSE e-trading platform. This creates a greater sense of financial transparency on behalf of the CGSE group members.
8、Safety of Funds
The transfer and withdrawal of clients' money only takes place from bank account to bank account and customers have full privileges of inquiry for their transactions.
The Chinese Gold & Silver Exchange Society's E-Trading Platform
The CGSE launched its electronic trading platform in 2008. A transaction code is given to every trade filled on the CGSE e-trading platform from a CGSE recognized electronic trading member. Clients can check transaction details such as execution price, execution time and contract volume on the CGSE website. Acetop Precious Metals provides transaction codes for executing opening and closing positions within one hour.
If you already have a basic understanding of investing in gold, it is recommended that you open an Acetop demo account in MetaTrader 4. Demo trading allows you to become familiarized with the Acetop trading rules and operations. Through trading under real market conditions with virtual funds, you can get more trading experiences before you start real trading with real funds.