What is a Bullion Market?

What is Loco London Gold

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.

Any company who wishes to become a group member of the IFSC undergoes strict scrutiny and periodic qualitative reviews. When investors choose a broker, they should research IFSC 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.

2、Market Liquidity

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.

3、Long/Short Positions 

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.

7、Online E-Trade

All contract trades conducted through a group member of the IFSC will have to be recognized and approved by the IFSC. Once a transaction has been approved, a unique transaction code will be given to prove the relevant trade was performed through an approved IFSC e-trading platform. This creates a greater sense of financial transparency on behalf of the IFSC 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.

        If you already have a basic understanding of investing in gold, it is recommended that you open an Golder demo account in MetaTrader 4. Demo trading allows you to become familiarized with the Golder 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.
 
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