Metals (ex : GOLD) - Margin Required for Gold Futures Trading in Commodities (MCX & NCDEX) in Commodities - In MCX, there are five contracts in gold — Gold (1 kilogram), Gold Guinea (8 gram), Gold HNI (10 gram), ...
03-08-2012 04:02 PM
Margin Required for Gold Futures Trading in Commodities (MCX & NCDEX)
In MCX, there are five contracts in gold — Gold (1 kilogram), Gold Guinea (8 gram), Gold HNI (10 gram), Gold M (100 gram) and the recently introduced — Gold Petal (1 gram). The contract is settled on the expiry date before which the trader is required to either square his position by selling it or pay the full value to take delivery.
In a gold futures contract, the initial margin requirement is 4 per cent. An additional margin according to the specifications of the exchange would be levied only in cases of high volatility in price.
What does this mean?
Lets say, you want to buy one lot of "Gold M (100 gram)" in futures, you need only 4% margin. It means you need cash for only 4 grams (4% on 100 grams). Lets say 1 gram Gold trades at 3000 Rupees. You would need 12,000 Rupees to buy one lot of "Gold M (100 gram)" in futures.
Lets say, you buy at 3000 and sell at 3030. You will gain 3000 Rupees (30 * 100) on your investment of 12,000 Rupees. Its a similar case with losses if it drops below 3000.
Click Here to open a Trading Account with "Zerodha" through bse2nse.com and get FREE Training on Futures and Options Trading Strategies.
Visitors found this page by searching for:
mcxgold1kglot margin amount,
margin list of mcx commodities,
margin required for 1 lot of mcx gold in futures,
margin requirements for commodities in india,
margin needed to buy gold,
mcx margin for gold,
money required for one lot of gold mcx,
minimum margin required for 1 lot if of gold in mcx,
margins of commodity in mcx,
how much margin is required for buying gold,
mcx gold 1 lot ,
what is margin for gold mcx,
mcx commodity trading margin for gold,
mcx trade margin for gold,
margin required to buy one kg silver at mcx india,
spread margin calculation in mcx,
margin money on gold in mcx ,
money required to trade gold,
money required to purchase one lot gold
Tags for this Thread