G
14,388.00
262.00 (1.85%)
MCX
G
GOLDPETAL
14,388.00
MCX
GOLDPETAL Futures Snapshot
About GOLDPETAL Futures
GOLDPETAL is the smallest gold contract on MCX. One lot is just 1 gram of 999 purity gold. You do not need large capital to take a position. Retail traders and small jewellers can participate.
The price tracks Mumbai spot rates. Contracts are rupee-denominated and settled daily. For traders, GOLDPETAL futures offer direct exposure to gold price moves without buying physical coins or jewellery. You get the same price action as the big contracts. The margin is the lowest on the exchange. Your risk stays proportional to your size. That is the point.
Factors influencing GOLDPETAL futures prices
How are GOLDPETAL futures prices determined?
The base is the international gold price. Spot and COMEX futures in London are used as benchmarks. These are pretty similar to MCX prices. A local layer is added by the rupee.
Gold prices on the MCX are directly impacted by USD/INR movements because gold is dollar denominated everywhere in the world. When the rupee depreciates, the prices become high. When the rupee appreciates, benefits are capped off.
On top is import duty and GST. Gold imports in India are taxed. These taxes are indirect taxes that are included in the price that is charged in the country. Futures move immediately if their duty structure changes.
Cost of carry includes financing and storage costs. There's a price to holding gold. This is reflected in the futures prices. If futures prices are greater than spot prices, the market is in contango. When below, backwardation.
Local premiums or discounts are up for renewal at the local level. These are the true prices prevailing in Indian markets. In liquid contracts, these are typically temporary. All these are real-time on the GOLDPETAL futures live price. Negotiations between buyers and sellers take place on the screen. This translates to ongoing price discovery.
Key metrics to consider while trading GOLDPETAL futures
Lot size: 1 gram. One contract of GOLDPETAL represents 1 gram of gold. This is the smallest gold futures contract on MCX.
Tick size: Re. 1 per 1 gram. Each tick move changes the contract value by exactly Re. 1.
Contract start day: 1st day of the contract launch month. If the 1st day is a holiday, the following working day.
Contract expiry: The contract expires on the final day of the expiry month. Should that day fall on a holiday, the expiry date moves to the immediately preceding business 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: 999 purity, LBMA approved suppliers or other suppliers approved by MCX, with the supplier's quality certificate or certicard mentioning the serial number and accompanying the gold 1 gram coin.
Making charges: Rs. 100/- per 1 Gram Gold Coin payable by the buyer to the seller, over and above the DDR.
9999 purity premium: If a seller delivers 9999 purity, the sale proceeds are calculated as Due Date Rate * 0.9999/0.999.
How to read GOLDPETAL futures data?
Benefits of trading GOLDPETAL futures
Most commonly used strategies in GOLDPETAL futures
How to trade GOLDPETAL futures on Dhan?
Open your account: Open a commodity trading account with Dhan and go for the full KYC with a registered broker. Make sure you have a separate account for the commodity futures (MCX) segment of the markets.
Add funds: Fund your trading account with money and make sure you have adequate margin in your futures account. Prior to placing an order, Dhan displays the margin requirement.
Pick your contract: Select the futures contract of GOLDPETAL of the desired expiry. The most liquid of the near-months are the contracts that are closer to their expiration. Each lot is 1 gram of material.
Read the numbers on the market.: Before taking a position, analyse the GOLDPETAL futures live price along with open interest, volume, and price trends. Check up to date contract information on the instrument page under commodities in MCX.
Place your trade: Follow orders with the proper order type. The market order is executed at the prevailing market price. Only the limit order is executed at your limit price. Maximum order size: 10 Kg.
Track your position: Keep an eye on GOLDPETAL price action, OI changes, and MTM changes during the session. The contract is highly volatile in nature as it depends on the gold movements and USD/INR rates around the world.
Adjust when needed: Adjust the positions or close them according to market changes, price action near significant levels, and the initial parameters of the strategy. Determine stop loss levels that are consistent with your risk tolerance.
Understands the contract type.: The commodity futures are settled daily on a GOLDPETAL MTM basis. Your profit or loss is posted at the end of each trading session. On the Expiry, Delivery is required unless you square off in advance.
Tips for trading GOLDPETAL futures effectively
Follow the USD/INR movement with global gold prices: A weak rupee can drive up the price of GOLDPETAL futures, even if global gold prices don't move. Money circulation is one of the essential features of pricing.
Be aware of changes to import duty rates: The import duty adjustment on gold can have an immediate impact on prices. Even a slight change can impact futures as India relies heavily on gold imports.
Look for cues of demand in Mumbai spot premiums: The level of premiums in the physical markets can provide an indication of local demand strength. Increased premiums prior to festivals could help GOLDPETAL futures move higher.
Schedule for around the time of delivery: The last 3 trading days are dedicated to compulsory delivery marking. If you do not wish to have settlement exposure, then exit before this phase.
Take into account the limits on prices set each day: The 3%-6%-9% circuit breaker structure can temporarily restrict exits. When prices move quickly, you need to be sure there is room for position sizing.
Read the GOLDPETAL futures chart across timeframes: The daily chart trend can be different to a 15-minute setup. Both can be compared to avoid getting in at the wrong time in relation to the bigger market trend.
Control the leverage and its use: A small lot size (1 gram) can lead to excessive trading. Do not risk more than a certain percentage of your capital in total trades.
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