MCX to launch Gold Ten futures contracts from April 1. From tick size to margin requirement, check key details here | Stock Market News

The Multi Commodity Exchange of India (MCX), the country’s largest commodity exchange, has announced the launch of Gold Ten (10 gram) futures contracts, effective from Tuesday, April 1, 2025. These contracts will be available for trading with expiry months of April 2025, May 2025, and June 2025.

The introduction of Gold Ten futures aims to provide a convenient and cost-effective option for investors and traders looking to hedge their positions in the bullion market, analysts said. 

The trading unit for the contract is set at 10 grams, and the price quote will be ex-Ahmedabad, inclusive of all import duties and levies but excluding GST and other applicable taxes.

The launch comes comes at a time when gold prices are trading at their record high levels. MCX Gold rate is nearing the ₹90,000 per 10 grams level, following a rally in international bullion prices. On Wednesday, MCX gold price hit a high of ₹88,970 per 10 grams.

Here are key details of the Gold Ten (10 gram) futures contracts:

Gold Ten Futures Contract Specifications

Symbol: GOLDTEN

Maximum Order Size: 10 kg

Tick Size: ₹1 per 10 grams

Daily Price Limits: 3% initially, extendable to 6% and further to 9% in case of high volatility

Margins Requirements: Minimum initial margin of 6% (or as per SPAN), with an extreme loss margin of 1%

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

Maximum Open Position

Individual clients: 5 metric tonnes (MT) or 5% of market-wide open position, whichever is higher.

Member firms (for all clients collectively): 50 MT or 20% of market-wide open position, whichever is higher.

Delivery Mechanism

The contracts will be settled through compulsory delivery at MCX’s designated clearinghouse facilities in Ahmedabad, with additional delivery centers in New Delhi and Mumbai. The gold must meet 999 purity standards and must be sourced from LBMA-approved suppliers or MCX-approved domestic refiners.

The staggered delivery period for the contract will begin five trading days before expiry, allowing sellers and buyers to indicate their delivery preferences. If no prior indication is given, positions will be marked for compulsory delivery upon contract expiry.

The delivery period margins shall be higher of 3% + 5 day 99% VaR of spot price volatility or 25%.

Final Settlement Price

On the expiry date, the Due Date Rate (DDR) will be determined based on the Ahmedabad spot price for Gold (10 grams, 995 purity), adjusted for 999 purity. If the spot price is unavailable due to unforeseen circumstances, MCX Clearing Corporation will follow prescribed guidelines to determine the final settlement price.

The launch of Gold Ten futures is expected to enhance liquidity in the bullion segment, offering traders a structured and efficient platform to participate in gold price movements. Market participants, including retail and institutional investors, can leverage these contracts to diversify their portfolios and hedge against price volatility.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.