The position limit system refers to the trading center's efforts to prevent its subordinate units from holding too many positions, so as to avoid the bad behavior of traders in manipulating the market, and prevent a few investors from holding too many positions, which will cause the risk of large market fluctuations and damage the interests of most positions. The above two points are the reasons for establishing and implementing the position limit system.

Which gold trading varieties have warehouse limit system?

The position limit system is one of the trading systems introduced by domestic commodity futures platforms and securities institutions. If you participate in gold trading, all the gold futures products launched in the previous period have trading rules on the position limit system. First of all, the principal amount in the personal account must be higher than a certain level to ensure that the account transaction can resist the leverage risk. Second, the number of single transactions should be limited to the maximum.

In fact, many gold speculation platforms have rules similar to the position limit system. Take London gold trading in the international market as an example. In order to prevent investors from exploding their positions due to their weak ability to resist risks, the trading platform will set a critical line for strong liquidation. When the net value is lower than a certain percentage, the platform will implement strong liquidation to help customers keep the least investment principal, and also stipulate the maximum number of trading lots for a single customer at a time, so as not to increase the risk of holding positions or disturb the normal trading order.