NCDEX cuts position limits in gold futures
Earlier on the NCDEX platform, large brokers had exposure in gold up to 18 tonne including all gold contracts, which has now been reduced to 6 tonne, or 15%, of open interest, the NCDEX circular said.
For small traders, open position limit has been revised from 6 tonne to 2 tonne including all gold contracts, or 15%, of open interest (outstanding contracts), it said.
The revised limits are effective from March 24 on all gold variants --gold 1 kg, gold international and gold 100 gram, the NCDEX said, adding that the exchange has made changes as per the directives received from the market regulator Forward Markets Commission (FMC).
Any new variants of gold contracts will also be included for calculation of said limits, it noted.
Bullion experts, however, said that the NCDEX move may fail to encourage brokers and small traders as they will have less exposure to gold now.
Gold volumes on the NCDEX stood at 6,755 tonne in the second fortnight of February, while on the MCX, its competitor, volumes soared to 8.18 lakh tonne.
Be the first to comment.