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What does it mean to short gold in London (London gold position limit)?

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What does it mean to short gold in London? What does it mean to short gold in L

What does it mean to short gold in London (London gold position limit)?

What does it mean to short gold in London? What does it mean to short gold in London?

First, what is shorting gold in London? Simply put, it means buying a futures contract in the market, then selling a certain amount of leverage (such as 10,000 USDT), and then waiting for the futures contract to fall before closing it, and then closing all positions. This situation is called shorting and liquidation.

Second, why is shorting and liquidation so easy to occur? Because in the market, when the price is falling, there will be liquidation when the price starts to decline. Therefore, shorting operations are very risky.

Third, what concept leads to shorting and liquidation of gold in London? Generally speaking, it is mainly short-term. In the short to medium term, shorting can generate high returns and profit. However, if we look at the historical data, under market volatility, going long often results in heavy losses.

Fourth, the UK Financial Conduct Authority stated: “Bitcoin and other cryptocurrencies are not protected by law.”

Fifth, trading platforms can provide leveraged token investment services.

London gold position limit

According to official news, the London gold position limit is 10,000 coins (4% of the total circulation). If London gold fails to break this threshold or exceed this level before December 15th, this restriction will be lifted. If London gold cannot reach this threshold or if Bitcoin does not further rise to this limit price, it is necessary to consider increasing leverage and shorting risks.

According to previously disclosed information, since February of this year, the price of London gold has fallen by nearly 40% to around $2,000 per ounce. Currently, there are concerns about the British financial system in the market, which may trigger a new round of market volatility. Investors should remain cautious to prevent potential losses.

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