> For the complete documentation index, see [llms.txt](https://goldusd.gitbook.io/goldusd-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://goldusd.gitbook.io/goldusd-docs/how-it-works/how-it-works/gold-arbitrage-strategy.md).

# Gold Arbitrage Strategy

The strategy seeks to monetize relative-value opportunities in gold markets while keeping directional exposure within defined limits.

## Simplified example

Assume a gold futures contract trades at a premium to economically comparable spot exposure. A simplified basis trade could:

* acquire the cheaper spot or spot-linked exposure; and
* sell the richer futures exposure in an approximately offsetting amount.

If the spread converges as expected, the strategy may earn the difference after financing, transaction costs and other expenses.

## Risk controls

The production strategy is expected to incorporate controls covering:

* net and gross market exposure;
* leverage and margin utilization;
* venue and counterparty concentration;
* liquidity and position size;
* basis and hedge mismatch;
* collateral composition;
* stress testing and drawdown limits.

The actual portfolio may use multiple instruments and venues. The simplified example above is educational and does not describe every trade the strategy may execute.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://goldusd.gitbook.io/goldusd-docs/how-it-works/how-it-works/gold-arbitrage-strategy.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.