MCX to launch Gold Ten futures contracts on April 1

The Multi Commodity Exchange of India (MCX) will launch Gold Ten futures contracts on April 1, 2025. These contracts will be for 10 grams of gold and will expire in April, May, and June 2025. The Gold Ten contracts aim to give investors a convenient option to hedge their investments in the gold market. Gold prices are currently near record highs. The MCX gold rate has recently approached ₹90,000 per 10 grams, following a rise in international prices. Key details of the contracts include: The trading unit is set at 10 grams, and the tick size is ₹1. There are daily price limits of 3%, extendable to 6% or 9% during high volatility. Investors will need a minimum initial margin of 6%, plus an extra 1% for extreme loss margin. Trading will occur Monday through Friday, from 9:00 a.m. to 11:30 or 11:55 p.m., depending on US time changes. The maximum open position is 5 metric tonnes for individual clients and 50 metric tonnes for member firms. Delivery of the contracts will happen at MCX's facilities in Ahmedabad, New Delhi, and Mumbai. Gold delivered must be of 999 purity from approved suppliers. The delivery period begins five days before expiry, and if no delivery preference is indicated, compulsory delivery occurs. On the expiry date, the final settlement price will be based on the Ahmedabad spot price for gold, adjusted for 999 purity. This launch is expected to improve liquidity in the gold market and provide a structured platform for traders and investors.