How a 200x Leverage in Gold Futures Earned Him 20% Annually
When holding gold futures, Shi Wenxin closely monitors the U.S. non-farm payroll data; a sharp decline often leads him to bullish positions on gold. At the beginning of 2020, the price of gold spot was around $1,517 per ounce, but due to the pandemic elevating market risk aversion, it surged to $2,075 per ounce by early August, exceeding the 2011 peak. During this period, he saw a 40% profit from his gold futures investments. However, he emphasizes that with leverage as high as 200 times in overseas gold futures, one must be extremely cautious and strictly adhere to stop-loss and take-profit strategies.
