Gold 10 Contracts: Know All About New Trading Unit Launched By MCX

The Multi Commodity Exchange of India (MCX) which allows investors to trade in commodity derivatives has announced the launch of a new gold trading product. The exchange announced the launch of the Gold Ten (10-gram) futures contract via a circular on March 18.

The exchange said that Gold Ten (10 gram) futures will be available for trade from April 1, 2025. MCX also mentioned in the circular that these contracts will be available with expiry months of April 2025, May 2025 and June 2025.

The exchange has set the trading unit for the contract at 10 grams. Notably the quoted price for the commodity will be ex-Ahmedabad. The price will include import duties and other levies. However, GST and other applicable taxes will not be included in the quoted price of the commodity. Here’s a look at some important details related to Gold Ten (10-gram) futures contracts:

Gold 10 Symbol

Gold 10 contracts will trade on the MCX with the ‘GOLDTEN’ symbol. The trading unit will represent 10 grams of gold.

Gold 10 Trading Days

The first day of the contract launch month will be considered as the contract start day. However, if the first day of the month is a holiday, then the following working day will be considered the start day. The last calendar day of the contract expiry month will be considered the last trading day.

Maximum Order Size

The MCX said in the circular that the maximum order size for the Gold 10 contract is 10 kilograms. The minimum tick size is Re 1 per 10 grams.

Daily Price Limits

The exchange stated that the daily price limit has been fixed at 3 per cent. However, if the limit is breached a relaxation of up to 6 per cent will be made without any cooling-off period in the trade. Further if the 6 per cent limit is also breached, then after a cooling off period of 15 minutes, the daily price limit will be increased up to 9 per cent.

Margins Requirements

MCX said that a minimum initial margin of 6 per cent (or as per SPAN), with an extreme loss margin of 1 per cent.

Gold 10 Purity

The Gold 10 will be of 999 purity and will be numbered Gold 10 gram supplied by London bullion market (LBM) approved suppliers or other approved suppliers.

The new trading product launch comes amid gold prices hitting record highs. Notably the MCX gold rate is close to Rs 90,000 per 10-gram. MCX gold price hit a high of Rs 88,970 per 10 grams. Prior to the launch, four gold products with different weights traded on the MCX such as Gold (1 kg), Gold Mini (100 grams), Gold Guinea (8 grams) and Gold petal (1 gram) were available for trade on the MCX.

Buy Outlook Money March 2025 Magazine Issue on Amazon Here.