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FAQs :
♦ What is GOLDGLOBAL contract ?
It’s a new contract launched by MCX, which is simple multiplication of international gold prices into INR.
♦ How it is different from regular Gold (1 kg) contract?
No delivery, No Custom duty, lower lot size (200 grams), settlement process are main difference between Gold and Gold Global contract.
♦ How it is useful?
For arbitrage between Gold and Gold Global, Gold and Gold mini etc..
For hedging of Import and export.
For traders, it will be low cost.
Spread between different contracts of MCX Gold e.g. Regular and global, Mini and global, guinea and global, petal and global.
♦ Is there any margin benefits for Gold Global?
Yes. The spread margin benefits of upto 75 % is applicable for gold and goldglobal.
♦ Why arbitragers should participate in goldglobal?
They will be able to save upto 250% of margin. Because margin of international and currency hedge will not be required and mcx margin will also be half.
♦ What is the broker’s benefits from goldglobal?
They can get NEW set of clients those who are doing arbitrage /BADLA business, those who are financial investors and do not want delivery, they can also motivate GOLD MINI clients for Goldglobal (it will double the brokerage).
♦ What is the benefits for Clients?
They will get opportunity to trade in international prices into INR.
Spread opportunity.
Lower cost.
No delivery.
No roll over tension.
No need to track custom duty.
No need for separate Rupee hedge.
Gold (1 kg) clients can trade at 5 different prices taking benefits of average.
♦ What is GOLDGLOBAL formula for conversion?
Goldglobal = {Gold international prices in dollar *(995/999) *0.321507425 *INR.
♦ What is GOLDGLOBAL expiry date?
It’s similar to currency futures expiry date but every alternate month in line with regular Gold (1 kg) contract.
♦ How the DDR will be calculated on expiry?
It will be international gold prices multiply by RBI reference rate on that day.