ATFX launches gold denominated in RMB, leading the new trend of gold trading in China.
Overview
In the international market, there are two authoritative quotes for gold: one is the futures/options represented by "COMEX Gold", and the other is the spot market represented by "London Gold". COMEX Gold is also known as COMEX Gold or American Gold because it has a fixed trading venue, COMEX (New York Mercantile Exchange), which is a tangible market. London Gold, also known as International Spot Gold or European Gold, has no fixed trading venue and belongs to the intangible market, mainly traded online. Comparatively, over 80% of global gold trading comes from the London spot market, while only about 10% comes from the futures and options of the New York Mercantile Exchange.
ATFX has always been known for its rich, comprehensive, and unique trading products. Whether it's COMEX Gold in the futures market or London Gold in the spot market, you can find the corresponding products on ATFX's MT4 platform. However, these two gold trading products can no longer meet the needs of Chinese clients. ATFX, thinking from the clients' perspective, has previously launched a groundbreaking trading product tailored for Chinese clients—RMB Gold!
▲ATFX Chart
As the name suggests, RMB Gold is gold denominated in RMB, with the quotation unit being "grams" instead of the internationally used "ounces". The quotation source for RMB Gold is the London market, so it belongs to the spot gold category. Although there are already existing spot products in the Chinese mainland market, such as Gold (T+D), AU99.99, and Paper Gold, which share similar spot attributes with ATFX's RMB Gold, ATFX's RMB Gold has the following five significant advantages in terms of trading system and attractiveness:
1. 23-hour uninterrupted trading from Monday to Friday. Whether it's Shanghai Gold or Silver on the Shanghai Futures Exchange or Gold T+D products on the Gold Exchange, the maximum trading time does not exceed 11 hours. The trading duration of RMB Gold is aligned with international spot gold, from 6:00 AM Beijing time to 5:00 AM the next day, with 23 hours of continuous trading.
2. RMB-denominated gold is more in line with the habits of Chinese traders. USD-denominated gold is more suitable for traders in Europe and the US, who use USD or EUR in their daily lives and have a more intuitive feel for these currencies. For Chinese traders, RMB is the currency used in daily life, and trading USD-denominated gold is not as familiar as trading RMB-denominated gold.
3. Gold denominated in RMB eliminates some exchange rate fluctuation risks. RMB-denominated gold is mainly influenced by the value of RMB, reducing its correlation with the USD index, thereby eliminating some exchange rate fluctuation risks and lowering the difficulty of fundamental analysis. However, gold is still an international trading product, and even when denominated in RMB, it is affected by the US and global economy, so the trend of RMB-denominated gold still resonates with that of USD-denominated gold.
4. No price limit. Trading in the Chinese gold market often has volatility limits, such as the ±5% limit for Shanghai Gold on the Shanghai Futures Exchange and the ±7% limit for Gold (T+D). If gold experiences sharp fluctuations, these limits can severely hinder the potential for profit. The more flexible price movement of RMB Gold allows traders to achieve more stable long-term profits.
5. Two-way T+0 trading mode. Whether the gold trend is bullish or bearish, traders can profit by buying or selling. Due to the immature development of the market, many spot gold products in the Chinese mainland market only offer buying modes without selling modes, which is an unacceptable drawback for traders who want to profit from short-selling. T+0 means traders can close their orders at any time according to their preferences, without being restricted by the "buy today, close tomorrow" rule. For short-term, intraday, and high-frequency traders, the T+0 system is a powerful tool to manage risks and seek profits.
Limited space prevents us from listing all the advantages of RMB Gold. If you are interested in gold trading, why not try trading on ATFX and experience the great charm of RMB Gold firsthand!
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