Gold Trading in MCX
Trading in gold and silver are getting higher
in day by day. We Indian are much obsessed for gold. In India, MCX facilitates
for gold trading. Short term trader do trade with very low margin and get the
gain from momentum in the respective prices.
In the open gold market, gold trading happens
in per 10 gram rate. It means if gold rate says Rs 25,000 then it means 10 gram
gold’s price Rs 25,000. In MCX the gold trading rule of trading is different.
First you have to open account with MCX through any registered broker. After
opening the account, you have to kept some margin with exchange for trade in
gold. Commodity exchange fixes the margin amount on the basis of the momentum
of the commodity rate.
In India, commodity exchange MCX provides 3
types of gold lot – 1 Kg (Gold Bada), 100 gm (Gold Mini) and 8 gm (Gold Gunia).
For example if gold is trading at Rs 25,000 per 10 gm then the total value of 1
kg gold would be Rs 25 lakh. If you want to buy 1 Kg gold in commodity exchange
then you will have need only Rs 1.25 lakh and if you buy it physical market
then you will have to pay Rs 25 lakh full payment.
So you can purchase 1 kg gold worth Rs 25 lakh
only paying Rs 1.25 lakh margin amount approx at present. The margin amount may
be change it subject to MCX guideline. If you purchase Gold Bada (1 kg lot) then
for Rs1 movement in gold price incurred you Rs 100 profit or loss. If the rate
increase by Rs 1 then you will get Rs 100 and if it the rate goes down then you
will have to loss Rs 100.
For gold mini (100 gm lot) the margin
requirement is Rs 12,500 and for Gold Gunia (8 gm lot) the margin requirement
is only Rs 1,000. By Rs 1 movement in gold prices, the mini gold gives you Rs
10 profit or loss and gold gunia gives you Rs 1 profit or loss.
Many traders are very active in gold trading
through the MCX. However, it would be good if you have some extra margin kept
with your broker in case of price goes against your trade. As I always say that
trading have more risk than investment. You can also take delivery of physical
gold. For this you will have to inform exchange before 5 days of gold contract
expiry date.
If you have doubt about investment
product and want more information regarding investment or you need investment
services, feel free to ask us. We also conduct the seminar on investment and
financial planning. If you are interested for conducting seminar in your city,
just drop the mail.
Warm regards,
Arvind Trivedi
Certified Financial Planner
