National Stock Exchange i.e. NSE is going to change the commodity market picture. Till now gold futures were considered to be the arena only for big businessmen. But after the approval of SEBI, now the doors of this market are going to be fully opened for the common people also. A new beginning is going to take place in the commodity derivatives segment from 16th March. NSE is launching its ‘Gold 10 Gram Futures’ contract. This will also give small investors an opportunity to take direct advantage of the fluctuations in gold prices and they will be able to trade easily with less capital.
This contract will be available in monthly series
This new contract of NSE will be available in every monthly series. Its trading symbol has been fixed as ‘GOLD10G’. This contract will expire on the last calendar day of every month. If there is a public holiday on that day, the earlier working day will be considered as expiry. In this, investors will get the facility to trade from 9 am to 11:30 pm from Monday to Friday. Trading hours may be extended to 11:55 pm during American daylight saving time. In this contract, a maximum of 10 kg of gold can be bought and sold under one order.
Understand the delivery rules also
Taking delivery will be completely mandatory in this contract. Customers will get 10 grams of gold of 999 purity, along with which a quality certificate will also be given. This delivery will be done at the Ahmedabad center through a supplier approved by NSE or LBMA. The contract price will be fixed at Ahmedabad rate, which will include custom duty, but GST will have to be paid separately.
This is NSE’s plan for risk management
To reduce market risk, NSE has fixed the daily price limit at 6 percent. If there is a significant change in price, it can be reduced to 9 percent after a cooling-off period of 15 minutes. The maximum position limit for any individual investor has been kept at 5 MT. The final settlement will be done on the basis of spot gold price of Ahmedabad.