GOLDM

Lot size: 100 grams. One contract of GOLDM represents 100 grams of gold. This sits between the 8-gram GOLDGUINEA and the 1-kg standard GOLD contract.

Tick size: Re. 1 per 10 grams. Each tick move changes the contract value by exactly Re. 10.

Contract start day: 6th day of the contract launch month. If the 6th day is a holiday, the following working day.

Contract expiry: 5th of the contract expiry month. If the 5th is a holiday, expiry shifts to the preceding working day.

Initial margin: Minimum 6% or based on SPAN, whichever is higher. This is the margin required to open a position.

Extreme loss margin: Minimum 1%, collected on top of the initial margin.

Additional and special margin: In case of additional volatility, the exchange may impose additional margin on both buy and sell sides, or special margin on either side.

Daily Price Limit (DPL): 3% circuit breaker. If breached, relaxation goes up to 6% without any cooling off. If 6% is also breached, a 15-minute cooling off applies before expanding to 9%. If international markets move beyond 9%, further relaxation happens in steps of 3%.

Maximum order size: 10 kg. You cannot place a single order beyond this quantity.

Open Interest (OI): Total outstanding contracts. Rising OI with rising prices shows fresh buying. Rising OI with falling prices shows fresh shorting.

Delivery: Compulsory on expiry. All open positions at expiry are marked for delivery. Staggered delivery runs on the last 3 trading days, including the expiry day.

Maximum open position: Individual clients face a cap of 5 MT or 5% of market-wide open position, whichever is higher, for all gold contracts combined. Members face 50 MT or 20%, whichever is higher, for all gold contracts combined.

Quality specifications: 995 purity, serially numbered gold bars supplied by MCX empanelled domestic refiners as per BIS Standard Gold, LBMA approved suppliers, UAEGD gold refiners, or other suppliers approved by MCX, with the supplier's quality certificate.

999 purity premium: If a seller delivers 999 purity gold, the sale proceeds are calculated as Rate of delivery * 999/995. If the quality is below 995, delivery is rejected.

Track USD/INR alongside global gold: If the gold price in the international market is not moving, GOLDM prices can rise due to the depreciation of the rupee. Half of the equation is currency moves.

Be alert for announcements about the import duty: The government varies the gold import duty according to the level of trade deficit and currency stability. Any adjustment is significant enough to have an impact on the domestic price.

Keep a watch on the spot premiums in Ahmedabad: Local rates can be higher or lower and indicate the strength of demand there. Futures tend to move up when there are high premiums before festivals.

Understand staggered delivery: The compulsory delivery marking will be for the last 3 trading days. On tender days, the closing price (weighted average of the last half an hour) of the delivery order rate will be used. On expiry, it is the DDR based on a three-day polled average. If you're not ready to take the plunge into physical changes, cut contact before this time.

Adhere to the daily price limits: Locking you in temporarily is possible when you're using the 3%-6%-9% circuit breaker system. Make trades that are big enough not to be margin stressed when hit by a limit.

Apply the GOLDM futures chart on various time frames: The daily chart may have a different trend from the 15 minute chart. Align them both before putting down money for them.

Avoid overleveraging: Exposure is meaningful at 100 gram lot size, and can be achieved with moderate capital. Do not risk more than a certain percentage of your capital on any one trade.