• HDFC securities
• 28 Mar 2025
• Knowledge Centre

 

According to the circular, The Multi Commodity Exchange of India (MCX) is revolutionizing the gold market with the launch of its new 10-gram Gold Futures contracts, starting Tuesday, April 1st, 2025.

 

What's the buzz?

 

The new 10-gram Gold Futures contracts provide a convenient way to invest in gold, offering smaller lot sizes that cater to a wider range of investors. This means you can now diversify your portfolio with gold, even if you're just starting out on your investment journey.

 

Contract Specifications and Trading Parameters

 

The details regarding the contract specifications and trading parameters are provided in the annexure of the circular. These specifications will be binding for all members of the exchange and the constituents trading through them.

 

Commodity	Contract launch date	Contract expiry months
Gold Ten (10 gram)	April 01, 2025	April 2025 May 2025 June 2025

 

Gold Ten Futures Contract: Key Specifications

Trading Unit and Price Quotation

• Symbol: GOLDTEN
• Trading Unit: 10 grams
• Price Quote: Ex-Ahmedabad (inclusive of import duties and levies, but excluding GST and other applicable taxes)

Order Size and Tick Size

• Maximum Order Size: 10 kg
• Tick Size: ₹1 per 10 grams

Daily Price Limits

• Initial Price Limit: 3%
• Extended Limits: 6% and further to 9% in case of high volatility

Margin Requirements

• Initial Margin: Minimum 6% or as per the SPAN margining system
• Extreme Loss Margin: 1%
• Delivery Period Margin: Higher of 3% + 5-day 99% VaR of spot price volatility or 25%

Trading Period and Open Position Limits

Trading Hours

• Monday to Friday: 9:00 a.m. to 11:30/11:55 p.m. (based on US daylight saving time changes)

 

The introduction of Gold Ten futures on MCX is likely to boost liquidity and attract more participants to the bullion market. This contract offers a smaller, cost-effective alternative to standard gold futures, making it more accessible to a wider range of traders and investors while serving as an effective hedging tool.

 

With gold prices reaching record highs, the Gold Ten futures contract enables both retail and institutional investors to engage in gold price movements, diversify their investment portfolios, and mitigate price volatility risks efficiently.