Margin required for Gold Future Trading | Gold Future Trading Brokerage | Requirements for Gold Future trading | Who is offering the trading of Gold Futures?

July 31st, 2010| Finance.

Margin required for Gold Future Trading


Margin money varies depending on the exchange, size of the contract and fluctuations in the prices.  Generally the margin money is 5 to 10% of the market rate.  Presently MCX has put the margin money as Rs.75,000 for 1 kg contract and Rs.7,500 for 100 grams contract.  Rs.600  are enough to buy a lot with Gold Guinea.  That means one can start gold trading with an investment as low as Rs.600.

Gold Future Trading Brokerage

This also changes with the exchange.  Generally brokerage charges are 0.1 to 0.25% if the total contract amount.  For every Rs.1,00,000 the brokerage charges will be Rs.6.  If the investor wants to take the delivery of the contract after the time limitation, the charges will be 0.25% to 1%.

Requirements for Gold Future trading

A bank account is necessary to start gold trading.  One would require Dmat account for commodity trading. National Security Depository Limited is offering Dmat account for shares as well as commodities.  Gold future trading can be initialized in the three exchanges.

Who is offering the trading of Gold Futures?

All the brokerage companies who are offering shares trading are also offering gold trading.  Separate registration for commodity trading has to be done to trade gold.  Companies like ICICI Commotrade (ICICI Direct), Sherkhan, Refco Sify, ISJ commo desk, Northeast Commodities which have membership with NCDEX and MCX are offering gold as well as commodity trading services. As the competition is growing charges for account opening are also not being collected.  The account can be opened with an amount of Rs.200 to Rs.500.

Gold Future Trading Regulatory Authority

Like Sebi which controls the stock market, Commodity markets are regulated by Forward Market Commission (FMC).  It observes and controls the commodity exchanges and dealings of brokers.

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