Mumbai: Multi Commodity Exchange of India (MCX) today launched one gram gold contract called Gold Petal futures contract. Currently, Gold Petal May and June 2011 contracts have been offered for trading.

The trading unit of the gold contract is one gram and price quote for the contract is ex-Mumbai (inclusive of all taxes and levies relating to import duty, customs duty but excluding sales tax / VAT, any other additional tax or surcharge on sales tax, local taxes and octroi).

The delivery of contract is possible in dematerialised or physical form. The physical delivery would be available in multiples of eight gram coins with London Bullion Manufacturers Association (LBMA) certified 999 purity. The delivery centres identified are G4 Securitas at Mumbai, and other delivery centres at New Delhi, Ahmedabad, Hyderabad, Bangalore, Chennai and Kolkata.
 
Tick size of the contract is Re1 per gram and the maximum order size is 10kg. The initial margin required to trade will be 4% or based on SPAN, whichever is higher. The open position limit for members has been fixed at 12.5 MT for all gold contracts combined together or 15% of the open market position, whichever is higher, and for clients it is 2.5 MT of all gold contracts combined together.

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