After buying, you can only make a profit when it rises.

Journalists found in their interviews that banks which launched the Gold T+D business also simultaneously launched Silver T+D. "It is very necessary to practice with Silver T+D first and become familiar with the operation methods of such investment tools," Ms. Zheng told reporters. The operation method for Silver T+D is similar to Gold T+D. Due to the cheaper silver price, the entry threshold is lower. "The margin rate of our bank is 12%, so just over 500 yuan is enough for one trade."

Gold T+D is a deferred delivery speculative type initiated by the Shanghai Gold Exchange. It conducts leveraged transactions through a margin form and has a mechanism for both long and short trades. Its short-selling mechanism allows gold traders to make profits even in a rising market.

"According to the regulations of the Gold Exchange, the T+D margin is generally 10% of the contract value. Banks usually set a slightly higher margin level to control risks. Our bank's margin is 15%, meaning 15% of the capital can conduct 100% of the transaction, roughly amplifying nearly 7 times," relevant personnel from Ningbo Jiangxi branch of Shenzhen Development Bank told reporters.

Lower risk tolerance and not suitable for beginners

According to journalists' understanding, among the banks in Ningbo that have launched the Gold T+D business, the margin threshold of Industrial and Commercial Bank of China (ICBC) is relatively higher at 20%, while Minsheng Bank's is the lowest at 10.5%, and Wenzhou Bank's is at 12%.

"The attraction of T+D lies in the fact that if you judge the direction correctly, you can make money whether the gold price rises or falls. However, if you buy physical gold or paper gold, you can only make a profit when the price goes up," Ms. Zheng Yan, a financial planner at the Ningbo branch of Wenzhou Bank, told reporters.

Relevant personnel from the Ningbo branch of Agricultural Bank of China stated that setting the margin at 20% is to reduce customer risks. "If the margin were really 10%, 10 yuan could conduct 100 yuan worth of transactions, but the risk would also be amplified. We feel that reducing it to five times, relatively speaking, the risk would be greater," relevant personnel from the Ningbo branch of Agricultural Bank explained to reporters.

Introducing a margin system can amplify up to 5 times. Gold has performed impressively since the beginning of the year, and related investment tools are gradually becoming familiar to investors. Gold T+D, which can amplify transactions, has become the new darling of some high-risk investors. In mid-May, when the spot gold price surged to $1249.30 per ounce, the average daily trading volume of Gold T+D business in some banks in Ningbo increased several times compared to last month.

Judging the correct direction, making money whether the gold price rises or falls

"I bought two lots of long positions around 252 yuan/gram in early April, and closed the position when the gold price reached 267 yuan/gram in mid-May." Investor Mr. Sun started investing in paper gold at the end of 2007, but began doing T+D trading this year. Talking about his recent trading experience, he repeatedly said, "It is indeed more exciting than paper gold."

According to journalists' understanding, the trading time for Gold T+D business is basically the same as personal physical gold trading, from 9:00 AM to 11:30 AM and from 1:30 PM to 3:30 PM on Monday to Friday, as well as from 9:00 PM to 2:30 AM on Monday to Thursday. In terms of trading costs, banks in Ningbo generally set the bilateral spread at around 0.02% of the transaction amount, ranging from 0.12% to 0.18%, which is lower than the fees for individual physical gold trading.

"Trading T+D carries more risk than stocks and is not suitable for beginners," relevant personnel from the Retail Banking Department of Shenzhen Development Bank in Ningbo told reporters, "We recommend that novice investors start with physical gold trading or Silver T+D."