Gold Guinea is a standard gold futures contract traded on the Multi Commodity Exchange (MCX) in India. The contract is named after the Guinea coin, a British gold coin minted between 1663 and 1814. Each Gold Guinea contract represents 8 grams of gold and allows investors to gain exposure to gold prices without physically owning the precious metal.
- Mcx Gold Guinea
- Gold Petal Vs Gold Guinea
- Contract Specifications – Gold Guinea
- How to invest in Gold Guinea?
- Quick Summary
Mcx Gold Guinea
MCX Gold Guinea is a derivative instrument in the commodity market. It enables investors to speculate on the future price of gold. The contract size of MCX Gold Guinea is 8 grams, making it accessible for small and medium investors who wish to hedge or speculate on gold price movements.
For example, if an investor believes that gold prices will rise, they can buy a Gold Guinea contract and profit if the gold price increases at the contract’s expiration date.
Gold Petal Vs Gold Guinea
The primary difference lies in their contract sizes: Gold Petal represents 1 gram of gold, while Gold Guinea represents 8 grams of gold.
|Parameter||Gold Petal||Gold Guinea|
|Contract Size||1 gram of gold||8 grams of gold|
|Tick Size (minimum price movement)||₹1||₹1|
|Quality of Gold||999 purity||995 purity|
|Maximum Order Size||10 kg||10 kg|
|Delivery Logic||Compulsory delivery||Compulsory delivery|
|Delivery Center||At all delivery centers of MCX||At all delivery centers of MCX|
Contract Specifications – Gold Guinea
Gold Guinea, denoted as GOLDGUINEA, is a type of futures contract traded on the MCX, each representing 8 grams of 995 fineness gold. The contract trades from Monday to Friday, between 9:00 AM and 11:30 PM/11:55 PM (during daylight saving), with a maximum order size of 10 kg. The price is quoted in increments of ₹1.
|Contract Start Day||6th day of the contract launch month. If the 6th day is a holiday, then the following business day|
|Expiry Date||5th of the contract expiry month. If the 5th is a holiday, then the previous business day|
|Trading Session||Monday to Friday: 9:00 AM – 11:30 PM/11:55 PM (Daylight saving)|
|Contract Size||8 grams|
|Purity of Gold||995 fineness|
|Price Quote||Per gram|
|Maximum Order Size||10 kg|
|Base Value||8 grams of Gold|
|Delivery Logic||Compulsory delivery|
|Delivery Unit||8 grams (Minimum)|
|Delivery Centre||At all Delivery Centers of MCX|
How to invest in Gold Guinea?
Investing in Gold Guinea contracts through the MCX is a straightforward process:
- Open a trading account with a registered commodity broker like Alice Blue.
- Complete the KYC process by providing necessary identification and address proofs.
- Deposit the required margin in your trading account.
- Start buying or selling Gold Guinea contracts through the trading platform provided by the broker.
Remember that like any investment, it’s essential to research and understand the product, market conditions, and risk factors involved in Gold Guinea trading.
We hope that you are clear about the topic. But there is more to learn and explore when it comes to the stock market, commodity and hence we bring you the important topics and areas that you should know:
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|difference between stock exchange and commodity exchange|
Gold Guinea – Quick Summary
- Gold Guinea is a standard gold futures contract traded on the MCX, representing 8 grams of gold.
- MCX Gold Guinea is a derivative instrument in the commodity market, allowing investors to speculate on the future price of gold.
- Gold Petal and Gold Guinea are different types of gold futures contracts on the MCX. The main difference lies in their contract sizes: Gold Petal for 1 gram of gold and Gold Guinea for 8 grams.
- The Gold Guinea contract traded on MCX has specific specifications, including an 8 gram contract size, 995 purity, and compulsory delivery.
- Investing in Gold Guinea contracts involves opening a trading account with a registered commodity broker, completing the KYC process, depositing the required margin, and buying or selling contracts.
- Grow your wealth by starting to invest with Alice Blue. The 15 Rs brokerage plan offered by Alice Blue, can save you more than 1100 rupees in monthly brokerage fees. Additionally, we do not charge clearing fees.
Mcx Gold Guinea – FAQs
1. What Is Gold Guinea?
Gold Guinea is a type of gold futures contract traded on the Multi Commodity Exchange (MCX) in India. Named after the historic British gold coin, each contract represents 8 grams of gold.
2. What is the value of gold guinea?
The value of a Gold Guinea contract depends on the current market price of gold. For example, if the current gold price is ₹4,000 per gram, the value of one Gold Guinea contract (representing 8 grams of gold) would be ₹32,000.
3. What is the margin for MCX gold guinea?
The margin for trading in MCX Gold Guinea varies based on market conditions and is set by the exchange. As of 2023, it typically ranges from 4% to 20% of the contract value. For example, if the contract value is ₹32,000, the margin could be between ₹1,280 and ₹6,400.
4. What is the trading unit of gold Guinea in MCX?
The trading unit of a Gold Guinea contract in MCX is 8 grams, which means each contract represents 8 grams of gold.
5. What is the Goldguinea Lot Size?
The lot size of the Gold Guinea contract on the MCX is 1. In other words, each contract purchased represents 8 grams of gold.
6. What is the difference between Goldm and Gold Guinea?
The key difference between Goldm and Gold Guinea lies in their contract sizes. Gold represents 100 grams of gold, while Gold Guinea represents 8 grams.