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Asked a question 8 months ago

What are the various types of gold contracts available for trading on the MCX?

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Hi Ashish, there are various types of gold contracts that one could trade on the MCX. These include:

  1. Gold (1,000gms)
  2. Gold mini (100gms)
  3. Gold guinea (8gms)
  4. Gold petal (1gm)

Besides the aforesaid futures contracts, option contracts are also available for trading on:

  1. Gold (1,000gms)
  2. Gold mini (100gms)

That said, for gold options, you may need to check for liquidity first, as these tend to be fairly illiquid.

Finally, there is an indirect way of taking exposure in Gold as well. This includes trading using the MCX iCOMDEX Bullion index futures. This index closely mimics gold price, as 67% of the index constitutes gold (remaining 33% is silver). For 2022, the weights would be 64% gold and 36% silver.

So, as you can see, there are various avenues of trading in gold derivatives on the MCX, depending on your requirement, risk appetite, and capital at hand.