Gold Ten Futures MCX: Know Everything About This Commodity

In April 2025, the Multi-Commodity Exchange of India (MCX) introduced Gold Ten Futures to make gold futures trading more accessible to a wider range of market participants. Though on MCX, you can already find the gold futures trading at different denominations and contract sizes.

However, Gold Ten (10 g) Futures MCX has been introduced with a new and smaller denomination contract on MCX to make the gold commodity market more efficient with more participants. Here we are going to discuss about the gold ten futures MCX, its lot size, settlement, expiry and everything about this commodity.

Read also: What is MCX Gold?

What is Gold Ten Futures MCX?

Gold Ten Futures MCX refers to a gold commodity derivative contract traded on the Multi-Commodity Exchange (MCX) in India. It is 10 grams of gold traded on MCX with a predetermined price on a specific future date, allowing the investors and traders to trade in the value of 10 grams of gold.

How does Gold Ten Futures Work on MCX?

The commodity futures contracts on MCX are derivative contracts that two parties enter into to buy and sell a predefined quantity of gold at a fixed price on a particular date. Gold ten futures on MCX is a 10-gram standardised derivative contract allowing traders to trade against the price of 10 grams of gold.

Unlike buying and selling physical gold, you can trade in gold futures that move as per the movement in the spot price of the gold.Traders may close their positions before expiry and settle profits or losses in cash. Positions held until expiry are settled according to MCX contract specifications

Features of Gold Ten Futures MCX

• Gold Ten Futures MCX Expiry Date: The MCX Gold Ten Futures contract expires on the last business day of the expiry month., which typically falls on the 30th or 31st of the month.
• Gold Ten Futures MCX Lot Size: The lot size of the MCX Gold Ten futures contract is 10 grams. The tick size MCX Gold Ten is Rs 1 per 10 grams, while the maximum order size is 10 kg.
• Gold Ten Futures MCX Settlement: This commodity futures contract is settled on the expiry date with physical delivery if no prior action is taken or instruction is given for this contract.  The tender period starts 5 trading days before expiry, the final settlement is done on the basis of the spot price of gold (995 purity) and adjusted to 999 purity.
• Gold Ten Futures MCX Trading Hours: The Gold Ten Futures MCX Trading between weekdays (Monday to Friday). The timing keeps changing due to daylight saving time in different countries’ time zones. The timing is April to October: 9:00 AM to 11:30 PM, and November to March: 9:00 AM to 11:55 PM.
• Gold Ten Futures MCX Margins: To trade in Gold Ten Futures MCX, traders are required to maintain  margins prescribed by the exchange and their brokers. Margin requirements are dynamic and may vary based on volatility, SPAN calculations and regulatory changes.
• Gold Ten Futures MCX Price Limits: The price limit starts at 3%, with a further cap of 6% and can be further extended up to 9% if the price is highly volatile in the market.

Why Gold Ten Futures Introduced?

The Gold Ten Futures has been introduced with the perspective to make Gold commodity trading more accessible to various types of traders, mainly small and retail investors. This smaller contract value gold futures contract has been created to meet the various needs of the commodity market.

• More Accessibility to Retail Traders: The standard size gold futures contract is trading at high rates, making the gold commodity market unaffordable to trade, especially for small traders. But a smaller 10-gram lot size allows such retailers and individuals to trade gold derivatives without investing a large amount.
• Price Discovery: The smaller-denomination gold futures provide more accessibility to retail traders, helping the market to discover the gold price more precisely in the domestic spot market.
• Improved Market Liquidity: The smaller size of the gold futures contract allows all types of participants to trade in this commodity, resulting in high trading volume and liquidity in the market.
• Hedging and Risk Management: This affordable futures contract of gold provides an opportunity for institutional as well as retail investors to hedge their existing commodity investment against price volatility.

Risk of Trading in Gold Ten Futures MCX

Just like other derivative instruments, trading in the gold ten futures also possesses several risks that you need to understand. Although Gold ten futures provides high liquidity with better profit potential and more stable price movement, but it also encompasses various risks.

Volatility Risks: Compared to other commodities, the gold price is highly sensitive towards the various economic factors globally, like economic growth, geopolitical tensions, US Federal Reserve policies, and central banks’ gold acquisition or fluctuation in foreign exchange currencies.

Also Read: Impact of Global Events on Gold and Silver Prices in India

Leveraging Risks: Since Gold Ten Futures are traded on margin, traders can control a larger contract value with a relatively small capital outlay. While this can amplify profits, it can also magnify losses.

Margin Calls: Similarly, with the change in the price of gold, the price of the Gold Ten Futures also gets affected, encouraging your broker to remind you of margin calls. And failure to maintain or deposit the margin money, there is a risk of Compulsory Square off of your trade position.

Settlement Risk: If you don’t inform before the expiration date, the Gold Ten futures will automatically be considered for physical delivery or expiry on a specific date. The risk of taking the physical delivery of gold can cost you more in terms of unexpected price change and the risk of handling the physical gold.

Overnight or Gap Risk: The commodity market works globally, and different countries have different trading hours due to different time zones. And unexpected price gaps overnight or over the weekend will not give you an opportunity to timely exit from your trade positions, putting you at risk of unexpected losses.

Currency Risk: The price of Gold in the international market is also highly influenced by changes in currency prices, mainly the US Dollar (USD) against the Indian Rupee (INR). If the gold price remains stable, but the currency price keeps changing, it will affect the price of the Gold Ten futures contract.

How to Trade in Gold Ten Futures MCX?

To trade in MCX gold futures, you need to open a commodity trading account with a SEBI-registered broker. Once your account is verified and activated, you just need to log in to your trading account, add the funds required for trading and analyse the market conditions to trade with right trading strategies.

Here you can choose the MCX gold futures, like the Gold Ten Futures contract of a particular month. You also need to choose the quantity you want to purchase, so that the value of the trade is visible here. Just place the order and keep watching and managing your positions as per the market trend. Traders can monitor their positions and choose to book  profits or limit losses based on their trading strategy and market conditions.

Summing-up

MCX Gold futures traded on the MCX in different denominations. Gold Ten Futures is one of them, introduced by MCX to allow more participation of traders, mainly from retail investors, to trade in Gold at low cost. It also provides better liquidity in the market and helps institutional as well as retail investors to use this futures contract to hedge their position in the physical gold with proper risk management.

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