The National Stock Exchange (NSE) commodity market is about to change the landscape. Until now, gold futures were considered a domain exclusively for large traders. However, with SEBI approval, the market is now fully open to the public. Starting March 16th, a new beginning is being made in the commodity derivatives segment. NSE is launching its “Gold 10 Gram Futures” contract. This will allow even small investors to directly benefit from gold price fluctuations and trade easily with minimal capital.
This contract will be available in a monthly series.
This new NSE contract will be available in a monthly series. Its trading symbol is “GOLD10G.” This contract will expire on the last calendar day of each month. If that day is a public holiday, the preceding working day will be considered the expiration date. Investors can trade from 9:00 am to 11:30 pm, Monday through Friday. Trading hours may be extended until 11:55 pm during US daylight saving time. A maximum of 10 kg of gold can be traded in a single order under this contract.
Understand the delivery rules.
Delivery is mandatory under this contract. Customers will receive 10 grams of 999 purity gold, along with a quality certificate. This delivery will be made at the Ahmedabad centre through an NSE or LBMA-accredited supplier. The contract price will be based on the Ahmedabad price, which includes customs duty, but GST will be payable separately.
This is NSE’s risk management plan.
To mitigate market risk, NSE has set a daily price limit of 6 percent. If there is a significant price change, this limit can be increased to 9 percent after a 15-minute cooling-off period. The maximum position limit for any individual investor is 5 metric tons. Final settlement will be based on the Ahmedabad spot gold price.
