Basic details of GOLD GLOBAL contract at MCX :
Lot size: 200 grams.
Tick size: Re 1 /10 gram.
Profit /loss per 1 Re = Rs 20.
Contract size: 475000 /-approx.
Margin required: 23500 approx.
Conversion factor: 0.321507425.
Expiry: Bi monthly as per International market.
Spread margin benefitsnly 25% of total margins is levied.
DDR: International prices *RBI reference rate *0.321507425.
Delivery logic: Both option .
bsk_research: Benefits of MCX Gold Global contract:
1. Arbitrage between Gold and Gold Global.
2. Lower contract value means lower CTT (10% saving on CTT)
3. NO impact of local taxes and custom duty change.
4. Easy to understand (simple multiplication of international prices into INR).
5. No need to go for separate Rupee hedge.
6. Spread margin benefits in different liquid GOLD contracts of MCX