Module 8   Currency, Commodity, and Government SecuritiesChapter 7

Gold (Part 1)

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7.1 – Orientation

As you know, there are two commodity exchanges in India – Multi Commodity Exchange (MCX) and National Commodity and Derivative Exchange (NCDEX). MCX is particularly popular for the Metals and Energy commodities while NCDEX for all the agri commodities. However, there is a lot of activity picking up on MCX for agri commodities as well. My job over the next few chapters is to discuss these commodities which are traded on the exchanges and get you familiar with the commodity contracts.

We will look into every commodity that is actively traded on the commodity exchanges. The idea is to know how the commodity contract works (contract specification), figure out which contract to trade and identify the factor which influences the commodity. I will skip the usual background to commodities market part, the one which talks about the history, forwards markets, the farmers in the US, the Chicago Mercantile Exchange etc. You will find this in almost any material on the Commodity market. I want to get straight to the heart of the topic by slicing and dicing the contract specifications of commodities and other details around them.

Here is the list of commodities available on MCX to trade; of course I got this list from the MCX website –

Image 1_A list

The idea is to cover all the major commodities that one can trade. Needless to say, one has to know how ‘Derivative Futures’ function before attempting to understand Commodities. So if you are not familiar with Futures, I’d encourage you to read the module on futures trading.

Anyway, assuming you are familiar with Futures, we will now start with Gold.


7.2 – The Gold Contract

Gold is a very actively traded contract in MCX. It has ample liquidity, with daily trades of roughly 15,000 contracts translating to a Rupee value of over 4500 Crore. Note, these numbers belong to just one type of Gold contract, often nicknamed “Big Gold”.

Gold comes in quite a few variants that one can choose to trade-in. Newbie and sometimes even the experienced commodity traders often get confused with these contracts, not knowing which one to trade and the difference between them. To begin with, let me list down all the different types of Gold contracts –

  1. Gold (The Big Gold)
  2. Gold Mini
  3. Gold Guinea
  4. Gold Petal

All these variants belong to the same underlying, i.e. Gold. I guess the best way to understand the difference is by understanding the contract specification of each of these variants. We will start with the big boy first, i.e. ‘The Gold’.

Here is the contract specification as per MCX, let me list the important things first, and then we will understand them one by one –

Particular Value
Price Quotation Rupee per 10 grams inclusive of all taxes and levies relating to import duty
Lot Size 1 kilogram
Tick Size 1 rupee
P&L per tick Rs. 100
Expiry Date 5th day of the contract month
Delivery Logic Compulsory
Delivery Unit 1 kilogram

Let me discuss these details in the same sequential order so that it becomes easy for you to understand the subsequent contracts. We’ll start with the price quotation.

The price quotation, as you can see, is for 10 grams of Gold. This price includes all the import duties and taxes; of course, we will talk more about this at a later stage. For now, be aware that the price of MCX is all-inclusive. Have a look at the following snapshot, and it shows the last traded price of gold futures on MCX –

Image 2_Gold

As you can see, the last traded price of Gold is Rs.31,331/-. Do note; this is the quote for 10 grams of gold. Since the lot size is 1 Kg (1000 Grams), we can calculate the contract value –

(1000 * 31331) / 10

= Rs.31,33,100/-

So what is the margin required to trade this? We can check this from Zerodha’s margin calculator –

Image 3_gold margin


The margin amount required is Rs.1,25,868/-, which means the margin percentage is roughly –

1,25,868 / 31,33,100

= 4.017%

As you can see, the margin percentage is just about 4%, which is pretty much similar to the currency contracts. However, the Rupee value of the margin is way too high, and it, therefore, prohibits many retail traders from initiating positions in Gold. In fact, this is the reason we have contracts like Gold Mini and Gold Petal, where the Rupee value of the margins is lower. We will talk about these contracts a little later.

Now assume you buy 1 lot of Gold on MCX, this means you have to park close to 1.25 lakhs as margin, and with each tick, you will either make Rs.100 or lose Rs.100 and how did we arrive at that? Well, it is fairly simple –

P&L per tick = (Lot Size / Quotation) * Tick Size

Let us apply this on Gold –

= (1000 Grams / 10 Grams) * 1 Rupee

= 100 Rupees

In fact, you can apply this formula to any futures and options contract to calculate the P&L per tick. Let me demonstrate this formula for the JPY INR contract. If you recollect the lot size for this contract is 100000 JPY, and the quotation was for 100 JPY, and the tick size is 0.0025, using this we can calculate the P&L per tick –


= 2.5 Rupees

Anyway, let us now focus on expiry. If you look at the expiry of Gold, it simply says 5th day of the contract month. Gold contracts are introduced every 2 months, and each contract stays in the system for a year, and at any point, you will have 6 contracts to choose from. Considering we were in August 2016, the following table should give you an idea of how this works –

Currently available contract Expires on
October 2016 5th Oct 2016
December 2016 5th Dec 2016
February 2017 5th Feb 2017
April 2017 5th April 2017
June 2017 5th Jun 2017
August 2017 5th Aug 2017

Needless to say, the most recent contract is the most liquid contract to trade; in this case, it would be October 2016 contract. Now when the October 2016 contract expires on 5th Oct 2016, September 2017 contract will be introduced, and the most active contract from 5th Oct 2016 would now be the December 2016 contract.

Do recall, settlement in equities is always in cash and not physical. However, when it comes to commodities, the settlement is physical and therefore ‘delivery’ is compulsory. This means if you hold 10 lots of gold and you opt for delivery, then you will get 10 kg of gold. To get the delivery of the commodity, one has to express his intention to do so. This has to be done any time before 4 days to expiry. So given that the expiry is on 5th, one has to express his intent to take delivery anytime on or before the 4th (1st, 2nd, 3rd, 4th).

If you are trading with Zerodha then do note, we do not allow you to get into the physical delivery of commodities. So you will be forced to close the position before 1st of the expiry month. In fact, I personally prefer to close the positions early on and not really get into the physical delivery of commodities.

For all practical purposes, if you know these things about the Gold contract, you pretty much know what is really required before you trade the big Gold contract.

We will now move on to know the other variants of gold that gets traded on the exchange.

7.3 – The other contracts (Gold Mini, Gold Guinea, Gold Petal)

The big gold contract, as you realize demands a heavy margin requirement in terms of Rupee value. This prevents a lot of traders from trading the big gold contract, and perhaps this is the reason the exchanges introduced contracts with much lesser margin requirement.

The other gold contracts that are available to trade is –

  • Gold Mini
  • Gold Guinea
  • Gold Petal

The details for the other gold contracts are as follows –

Price Quote Lot Size Tick Size P&L/tick Expiry Delivery Logic Delivery Unit
Gold Mini Rs. per 10 gm 100 gm 1 rupee Rs.10 5th day Compulsory 100 gm
Gold Guinea Rs. per  8 gm 8 gm 1 Rupee Rs.1 Last day Compulsory 8 gm
Gold Petal Rs. per  1 gm 1 gm 1 Rupee Rs.1 Last day Compulsory 8 gm

I’m assuming the table above is a lot easier to understand now considering we have discussed these details earlier. Let’s dig straight into the margin details.

Image 4_gold margins

As you can see, Gold Mini (GoldM) contract requires a margin of Rs.15,682/-. In terms of percentage –

= Margin / Contract Value

Contract Value = (Price * Lot size)/Price Quotation

= (31365 * 100)/10

= Rs.313,650


= 5%

In terms of margin percentage, this is roughly the same as big Gold. For the sake of completeness let us quickly calculate the P&L per tick for Gold Mini. We know –

P&L per tick = (Lot Size / Quotation) * Tick Size

= (100/10)*1

= Rs.10/- per tick.

Beyond the Gold Mini contract, we have Gold Guinea and Gold Petal contract. These are extremely tiny contracts which demand a shallow margin, as low as Rs.1251 (Gold Guinea) and Rs.154 (Gold Petal). The lot size is small, and therefore the contract value is small as well. You will find a few variants like Gold Petal (Delhi), Gold Guinea (Ahmadabad) etc., and I would suggest you ignore these, especially if your idea is to trade Gold.

Here is my honest opinion – if you are trading Gold stick to either the Big Gold contract or the Gold Mini contract, simply because the liquidity is quite bad in all the other contracts. To give you a perspective on liquidity on a regular trading day (on MCX) –

  • 12 – 13K lots of big gold contracts get traded
  • 14-15K lots of Gold mini contracts get traded
  • 1-1.5K lots of Gold Guinea contracts get traded
  • 8-9K lots of Gold Petal contracts get traded

The number of lots in Gold Petal should not entice you to believe that the liquidity is high, do remember Gold Petal lot size is just 8 grams, and therefore 8-9K lots translates to roughly 2-2.5 Crs.

Another important thing to note – liquidity is highest in the nearest month contract, so always stick to these. The thumb rule here is – farther the contract expiry, lower is the liquidity.

With this, I assume you are familiar with the Gold contracts and logistics. In the next chapter, we will discuss a few interesting topics such as the parity in domestic and International gold contracts, factors influencing Gold, the relationship between gold, equities, and dollar etc.

Key takeaways from this chapter

  1. Gold is one of the most popular bullion contracts that gets traded on MCX.
  2. The gold contract comes in a few variants – Big Gold, Gold Mini, Gold Guinea, and Gold Petal.
  3. Big Gold is the most popular contract, but requires a margin over Rs.1,25,000/-.
  4. The P&L per tick for the big Gold is Rs.100.
  5. P&L per tick can be calculated as = (Lot Size / Quotation) * Tick Size.
  6. Gold Mini is the 2nd most popular Gold contract, requires a margin of roughly 15K.
  7. Gold Petal and Guinea are other variants demanding much lower margin requirement. However, the liquidity in these contracts is quite low.
  8. It is always a good idea to stick to the nearest month contract as liquidity is high in these contracts.
  9. Delivery is compulsory for all these contracts; therefore, it makes sense to close these contracts at least 4 days before the expiry of the contract.



    Market Guru,
    Gold petal lot size 8gm or 1gm ?

  2. Chhaya g says:

    Karthik Sir, when you will write strategy for crude oilm……. waiting for it

  3. Anil Choudhary says:

    How can I invest in Gold? Like If I want to invest in SBIN I simply buy 1 share of SBIN by CNC trade.
    How to buy Gold by CNC trade?

  4. uday says:

    Hi Kartik,
    Which is the most traded commodity in India ( or in Zerodha clients) gold, silver or crude oil or any other one and can you please specify the other major countries commodity market timings in IST, which are effecting Indian market

  5. thinesh says:

    I wish to trade Gold mini futures. What is the market timing in India to trade this?. example ..Stock market opens at 9.15 a.m and closes at 3.30 p.m. beyond which we cannot trade..similarly is there any timing for commodity market?

  6. Pankaj Belsare says:

    I have an account in Zerodha since last 4 years. But Commodity transactions is not active. What to do for that. Is there any separate charges for that? Can we trade commodities in kite ? Are there separate yearly charges for mainting commodity account? Please Post Crude related article at the earliest.

    • Karthik Rangappa says:

      We will post chapters on Crude soon. You need to open your commodity account to trade commodities. Suggest you contact our sales team for that. Yes, you can trade commodities via Kite.

  7. CHAITANYA kALE says:

    Lord of wisdom !
    God of intellect !!
    “ShreeGanesh” bless ‘u’..!!!

  8. Balaji says:

    Hi Karthik,great work by you and your team I have gone through all modules, excellent work!! .

  9. jai5 says:

    Hello All
    I am a beginner in commodity trading. Kindly assist me in the following
    1.Which type of analysis is suitable for the Intraday commodity trading.
    2.Which pattern i should use ?
    3.At present i am using a 5 minutes candlestick chart , Is that right to use.
    4.At present i am trading only in Metals ,kindly suggest some best analysis & patterns to study & follow.

  10. MSP says:

    Hi Karthik

    Does commodities trade on saturday and sunday as well on MCX? , if yes , what is the timing on these days for trade

  11. Sumeet Das says:

    ( Now when the October 2016 contract expires on 5th Oct 2016, September 2017 contract will be introduced….). In this sentence isn’t the month should be October 2017 that is 2 months after August 2017 as mentioned on the Table ?

    And Thanks for all this. It is very helpful and informative and is explained in the most simple way possible. 🙂

  12. dk1089 says:

    Can we take short positions in gold mini and close it before 1st of expiry month, same as in nifty futures or there is difference in commodity trading n stock futures trading

  13. Sid says:

    Was looking at the GoldM contracts. When I look at it in the Margin Calculator in the ‘Net Qty’, I see 100 (Lot Size). But, when I try to trade it; the qty says ‘1’. Does that mean 1=100, so the tick is Rs 100? Similar is the case with SilverM.

  14. atul says:

    hi sir i dont have clarity on mcx contract expiry dates can u guide me what is best option to do commodity trading intraday or carry forward contract.when i need to exit before expiry or wait till expiry, i am also confused about physical delivery. i have read somewhere if u dont close ur contract it will goes to physical delivery what is that , what is warehouse receipt?

    presently i am trading in equity but i am intrested to trading in commodity as well as currency so i am beginner in this commodity trading and eager to learn plz guide me on above question and suggest me any book for the same

    thanks in advance


    • Karthik Rangappa says:

      Most of the thing you’ve asked is explained in the chapter itself. I’d suggest you close the position before expiry. Intraday or swing trade really depends on your risk appetite.

  15. Manish says:

    What an awesome tutorial this is !! Very nice and elaborate.. Just what we need… Thanks a lot for this…
    One more thing.. Is there some sort of chart that lists the quotation, lot size, tick size, etc for all the actively traded commodities.. Like i was looking for a table that would list all the commodities in 1 place which would be easy to refer…

    • Karthik Rangappa says:

      Thanks for the kind words, Manish.

      MCX gives out that chart, I had a copy of the same (need to dig up)…will try and put that up sometime soon.

  16. Prashant Jain says:

    I want to take delivery of gold petal in demat. How can I do so..?

    • Karthik Rangappa says:

      You cannot do this. However, you can take delivery of Goldbees, which is basically an ETF based on gold prices.

  17. Mohit Khandelwal says:

    Hello Karthik Sir

    I have read your pdfs’ and I am simply mesmerized by the way you have written down the content comparing it with routine life along with the graphs. I have opened the account in zerodha. I am pursuing MBA and very much interested in capital markets. Actually we are 3 friends and I would like to know if there is any project for us or any internship opportunity under your guidance. Hoping to learn from your experience and knowledge.

    Thank You

    • Karthik Rangappa says:

      Thanks for the kind words, Mohit. I’d suggest you reach out to our HR to know if there are any opportunities in Zerodha.

  18. abhishek kumar sah says:

    when i type gold in kite it shows gold fut contracts, how do i get the gold spot chart???

  19. abhishek kumar sah says:

    so you mean to say that GOLD M August fut contract will expire on 5th of august?

  20. Rajinder says:

    Dear sir, I am member of zerodha and at present trading on equities only.
    Sir in this chapter you have given a table for Gold Mini, Gold Guinea and Gold Petal in that in Delievery Logic you stated as Compulsory. Please clarify whether in these delievery is compulsory and it can not closed for cash.
    Is it true

  21. aravind says:

    what are the timings of commodity market?

    • 10.00 AM to 11.30 PM (up to 11:55 P.M. on account of day light savings typically between every November and March of the following year) for all Non-Agri commodities.

      10.00 AM to 9.30 PM for Internationally linked Agri commodities (Cotton, CPO & RBDPMOLEIN)

      10.00 AM to 5.00 PM for other Agri commodities.

  22. biswajit mahapatra says:

    sir, when i am writing gold on search box it shows copperm aug future. Then how i trade on gold commodity?

    • Karthik Rangappa says:

      Look for ‘Gold MCX’ on the market watch in Kite. You will find the futures contract. Good luck!

  23. Hina says:

    Sir, what is a Bullion contract?

  24. ram balak says:

    why you are not allowing delivery of gold in demat form.

  25. Prakhar says:

    You said that delivery of gold contract is compulsory if position is not squared off.
    if for some reason the trade cannot be squared off , what will happen then.

    • Karthik Rangappa says:

      It will be treated as an expression of interest to take delivery.

      • Prakhar says:

        Similarly if someone has shorted say gold and not squared off till expiry then he had to make delivery of gold. Is it so?
        Also if the position is squared off even in expiry day then there would be no settlement issue or position should be squared off before 1st of expiry month.

        • You need to deliver 995 purity(or higher) Gold to the MCX vault who will, in turn, give it to the buyer of the contract. Failure to provide delivery will lead to a cash settlement with a penalty of 3% of the contract value on expiry (or more if the gold price has moved up). The MCX contract specification has more on this.

  26. Lalit S. says:

    Respected Sir,

    Firstly I would like to thank You for this amazing job of educating the public you’re doing. It is truly magnificent! I have a question for which I would greatly appreciate your input.
    I tried calculating the Option Greeks for Commodities on the Black – Scholes Model. However, the MCX website does not provide the Implied Volatility column. Is there any other way to calculate the same for the Commodities?

  27. anulekh says:

    i also want to trade agri commodities in ncdex .Will you advise me of any good broker which would provid eme trading in ncdex.

    • Karthik Rangappa says:

      I’m not sure, Anulekh. Btw, why do you want to trade agri commodities? Do you understand them better?

      • anulekh says:

        I think that in some cases their demand and supply could be understood better and that they can move by more percentage as compared to stocks which could result in higher gain if our direction is correct.Am i right?whtas your view on agri commodities.

  28. Arun says:

    I am new to commodity tading.I bought goldm 19 feb futures on 28.1.18 ,but i recived message to squre off my holding on 31.1.18 before 11.00a.m. pls let me know the expiry date of the contract.

  29. Raj says:

    Now when the October 2016 contract expires on 5th Oct 2016, September 2017 contract will be introduced, and the most active contract from 5th Oct 2016 would now be the December 2016 contract.

    Just noticed that the above should be corrected. The new contract introduced will be October 17. Am I right sir?

  30. Raj says:

    Sir what is the “delivery unit” in the contract specification ?

  31. harsh pandya says:

    Dear Sir,

    Let me know the process for gold etf.

    Harsh Pandya

  32. RASHID says:

    Hello Sir,

    Is physical settlement is same for other metals also like that of gold. Fr Eg: Aluminium. When we have to square off the position if settlement is on 19th. What will be the case if we have a arbitrage position. say short of 1 lot of mega and long of 5 lot of mini. What will happen in such cases if we didnt square off before 5 days of expiry.


    • Karthik Rangappa says:

      Its best you square off the position for the delivery period starts, Rashid. Else you will have to take the pains to go through the delivery process and the arbitrage opportunity may not exist.

  33. Mani says:

    Hello Sir,
    I am new to Commodity Trading. Your Answers are really very helpful in my learning.
    I have 2 queries:
    1. Is there any max. limit or max. quantity one can hold ? Say for Example Only these many Lots of Gold is allowed to be bought by a trader..
    2. Is there any restriction on the maximum number of trades that one can make on a Single day ?

    Could You Please advise.. Thanks in Advance..

  34. gautam says:

    what are bad thing about illiquid stock or metals (one i know it does not move parallel with BIg gold)
    You have done a great work no one has to go anywhere after coming here
    wish u happy holi
    may god give crore of rs to both us 😉

  35. gautam says:

    hello sir it possible in near future that we can use continuous chart in lower time frame
    2.when will it be available for cds
    3 is there any alternate way to see previous data in lower time frame???

    • Karthik Rangappa says:

      1) We already have continuous chart on a EOD basis. Working on lower time frames
      2) Nope, again this is on the pipeline
      3) Can you try chartink?

  36. Hobby says:

    What are the trading timimgs for Gold

  37. Anshul says:

    Hi Karthik,

    Just started exploring commodity world, have some basic apprehensions, pls help clear them.

    1. If I just want to do commodity trading with NO intent of taking physical delivery what needs to be taken care to avoid physical settlement.
    2. Are all intraday commodity positions auto squared off by RMS by end of day and hence trader would be safe from physical delivery?


    • Karthik Rangappa says:

      1) Just ensure you close the position before the expiry, this will take care of avoiding the delivery based situation.
      2) Thats right.

  38. Prasad says:

    sir pls explain how to buy options in gold index, at this hour I am trying buy GOLD SEP 38000 CE at Rs.150.45 but the system in not accepting my order

  39. RAJINDER says:


  40. Saubhik says:

    I would like to know the weekly/monthly/annual calendar and timing of international data postings which affect the cost of major commodities like gold, Crude, Natural gas and base metals. I have heard that crude stock data posting on Wednesday affects crude price.

  41. Rajesh says:

    hello karthik

    1.right now i choose 1 hr, 30 min and 15 min with macd and 9, 21 ema. i choose 1 min and 5 min chart for sideways market with same macd and ema. what is the best timing for intraday trading and for TA’s effective performance ?

    2. And frankly speaking karthik, after knowing this kind of precious knowledge as you teach in TA and in all varsity still i do not have courage to trade. i analyze the market with TA it works so well, for e.g if i see engulfing pattern in 1 hr or 30 min chart i still do not able to trade at a time. Is that something to overcome my fear ?

    • Karthik Rangappa says:

      1) Depends on your risk appetite. Stick to EOD or at the most 15 mins time frame. 9×21 is a decent start for intraday trading.
      2) You cannot swim by reading a book, you will have to swim at some point 🙂 So dont hesitate, go ahead and place a trade…even if it is with 1 share. The lessons you learn when you have a live trade is far more valuable the lessons you’d learn otherwise.

  42. Rajesh says:

    Is taking delivery complsurry in gold petal

  43. PANKAJ says:

    I want to clarify that Like Equity share Gold can be Delivery can sold after 1 years or onwards

    In simple As you know Equity share eg . SBIN can take in Delivery position and can be sell at any time longterm position 10 to 20 years
    Is this same occurred for GOLD

  44. PANKAJ says:

    Is it possible to convert ETF GOLD into physical gold or at least can convert into money

    ETF offer which gold 22 carat or 24 carat

  45. PANKAJ says:

    I can’t understand just tell me is it equivalent to buy GOLD and ETFs

    Means buying ETFs I buy GOLD it means I am equivalent to Jeweller business who buy and sell Gold

  46. Hitesh says:

    How can we get delivery of Gold in mcx.

  47. Mohan says:

    “I will skip the usual background to commodities market part, the one which talks about the history, forwards markets, the farmers in US, the Chicago Mercantile Exchange etc. You will find this in almost any material on Commodity market.”

    Sir, can you please point me to a link where I can learn more about this.

  48. avinash phadke says:

    is gold contract advisable now ?

  49. H Sai Sundar says:

    Hi Karthik!

    Are gold contracts as liquid as Index Options.

    If an institution has to buy/ sell 300 contracts at a particular price, will they be able to?

  50. Rohit Dua says:

    A big shoutout to your graphic design team, Karthik. The graphics throughout varsity have been really really cool and amazing. They add quite a lot of value to the content.

  51. Saravana says:

    How about the delivery options? How to purchase/convert it into physical gold? Where to take delivery? Needed full details.

  52. Nathen says:

    Hi sir just found that commodities can be traded from monday to saturday and have long trading time from 10:00 am to 11:55 pm on week days and 10:00 am to 02:00 pm on saturday.

    Is this applies to all commodities on MCX?

  53. Mahendran says:

    Sir when there is much of a difference between gold petal – guinea or gold – goldM
    Can we arbitrage these difference based on them.

    What is the minimum arbitrage for a profitable trade?

    • Karthik Rangappa says:

      Yes, but I think the exchanges have withdrawn some of these contracts. Min arbitrage should be enough to compensate you for the charges and give you pop on that.

  54. Varun Agrawal says:

    I saw GOLD is 46727 and GOLDPETAL is 4705 right now.

    I know it’s a very basic question, but can this be considered an arbitrage opportunity?

  55. Faze says:

    Hi sir,
    I am new to commodity.
    How to find out the support and resistance for gold Guinea, n for any commodity , is it by using any calculator or by price action ?
    Thank you.

  56. Faze says:

    Thank you sir.

  57. Sivaji says:

    What is the process if i prefer to take delivery?

    • Karthik Rangappa says:

      Unfortunately, we don’t support the physical delivery of commodities, so I’d not be able to help you with this.

  58. Nageswaran says:

    i opened recently account with zerodha i want to how to invest money into commodity gold mini it will unit price or 1 gram price. please let me know

    thanks and regards

    • Karthik Rangappa says:

      You can trade in Gold futures, which is different from investing. You’d rather invest in Goldbees or SGBs.

  59. Sonu says:

    Hi Sir , meine Commodity mein GOLDM SEPT FUT buy kiya hai lekin mujhe long term hold karna hai ..lekin mujhe Rollover nahi ata ..plz bataye ki Roll over kaise karte hai ..plz reply

  60. p sangeeta says:

    Hi, Sir I want to start trading in commodity especially in Gold. How should I go.

    • Karthik Rangappa says:

      Start by learning about the nuances of commodity trading, futures, and gold fundamentals. All the information is available to you here.

  61. Piyush sarawgi says:

    Hi Karthik, need your opinion on gold physical investment. I am a salaried employee and I have total 5 lakh rupees with me now. I am thinking to buy 1.7 lakh rupees of gold. Is it right for me to do it now or later? Please suggest

    • Karthik Rangappa says:

      I really cannot comment on the timing bit, but all I say is that probably SGB is a better way out than physical gold, unless you have your own reasons to buy physical gold.

  62. Venugopal says:

    Sir, It is mentioned that “The number of lots in Gold Petal should not entice you believe that the liquidity is high, do remember Gold Petal lot size is just 8 grams, and therefore 8-9K lots translates to roughly 2-2.5 Crs.”

    But actually the lot size is only 1gm as mentioned by you.

    Please check n revert.
    Thank you for the varsity sir

  63. Vinod says:

    As we can buy gold on MTNL on line in same way how we could buy gold, silver or other commodity. Kindly clarify and give the link

  64. Ayush Garg says:

    Hi Karthik ,

    Above in 7.2 when we buy October contract which will expire on 5 October in this zerodha will close the contract on 1st of expiry month which is 1 October. So contract will trade only for 1 October so it’s like INTRADAY. CORRECT ME IF I’M TAKING THIS WRONG. And What will be the trade timings ?

  65. Vikram says:

    Does Zerodha allow trading in NSE Gold mini options? If yes, what is the symbol for those options?

  66. Susanta says:

    It is said that generally the spot gold price is cheaper than the future price due to cost of storages, interest rates and speculations etc. But I wonder why at present time it is showing the opposite !! At the time of this writing, mcx gold dec future is trading at approx 50320 But the spot price of 24K gold in most cities ranges from 52250 to 52600. Can you please explain this difference ? Thanks in advance.

  67. Susanta says:

    Some correction related to above query.. I find the 24k gold spot price is approx 50600. Can you please explain this difference ?

  68. Pradeep says:

    Hi karthik,

    Every nicely explained, i have a question many analysts believe gold is inversely proportional to stock market, is it true, if we experience the market crash, then can we invest in gold ?

    Valuable advise please

  69. Mukesh says:

    how can i open scrip of nas goldmini option contract in kite platform

  70. Harshit Badolla says:


    I am new to futures. I just wanted to know how does it work?
    Say I want to buy Gold Mini. Cash in hand is ₹50,000/- and I checked the margin calculator, price as per margin calculator is ₹49418/-

    So I can but 1 lot.

    When is the expiry? Is it 3 months? 1 month?
    and on the date of squaring off, how much profit will I make if the price is ₹51000/- or how much loss will I incur if the price comes down to ₹45000/-

  71. Harshit Badolla says:

    Thank you. I will get back to you if I have any doubts.

  72. Piyush says:

    Hello Sir,
    I wish to know if one can track the exact gold/silver prices on the exchange in Zerodha watchlist? Like we can see real time value of any stock, could we do the same for 24 carat gold?

  73. Piyush says:

    I Love to trade in Gold ETFs and SGB. However i am unable to track exact gold prices. I need to refer other websites/Apps for the same

  74. Ankit says:

    For gold mini, tick size is Re 1 and P&L is Rs 10. This means if I buy a lot for 45000 and the value becomes 48000, I will be earning 30000. Please correct me if I am wrong

  75. harsh says:

    the price for Gold Guinea was 37155 (we sell this contract which is 8 grams)
    and the price of Gold petal was 4616 (we buy 8 contracts of 1 gram each) = 4616*8 = 36928

    (these prices are as on closing of 9th April,2021 for the 30th April expiry)

    now here we can make an arbitrage profit of 37155 – 36928 = 227 for every 8 grams

    now my question is

    case 1) Will the positions get auto squared off on the date of expiry (30th April) and we make arbitrage profit?

    case 2) or do need to take the delivery of 8 gold petal (1 gram) and one give the delivery of 1 contract of gold guinea (8 gram)

    please answer which case is applicable case 1 or case 2?

    • Karthik Rangappa says:

      1) Yes, provided if you have the margins to hold to expiry (with other brokers)
      2) We don’t support the physical delivery of commodities, positions will be closed prior to the expiry

  76. Lalit says:

    Sir, how to buy Gold for long term

  77. Lalit says:

    Thanks Sir, which is best sgb for long term (name).

  78. Bharath says:

    Sir what is tick size
    and with each tick, you will either make Rs.100 or lose Rs.100 ,what do this mean
    Didn’t get this point

  79. RRB says:

    Karthik, you mentioned that Zerodha does not allow physical deliveries. I have a basic question, So if I am long on a contract and I sell to close my position. The counter party that buys will necessarily have to take Delivery right?

  80. Saurabh says:

    Can I trade intraday in indian commodity market with 9-5 job?

  81. Sk ahammad ali says:

    Sir I want to trade short tram on Gold MCX, how do I do ..?
    I would do it on any software and how much minimum investment is needed if it was said in detail it would be very useful.

  82. Nehal Shaw says:

    Can I sell mcx gold (short selling) in delivery

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