Now, trading will be possible in as little as 10 grams of gold! How can you invest in this exciting plan from the NSE? Find all the details here..

What are NSE 10-Gram Gold Futures? Investing in gold will no longer require holding large sums of money. The National Stock Exchange (NSE) is soon set to launch a facility that will undoubtedly open up a new avenue for ordinary citizens to invest. This facility is known as the "10-Gram Gold Futures Contract." In this report, we explain why this plan is unique, how one can invest through it, and whether now—amidst times of conflict—is the right time to invest in gold.

Historically, trading in gold required dealing in large lot sizes. This meant that investors had to possess substantial capital. However, with the introduction of this new contract by the National Stock Exchange, the landscape is set to change significantly. Even small investors can now generate returns by investing in units of just 10 grams of gold. In other words, alongside Fixed Deposits (FDs) and other investment schemes, small investors now have the opportunity to earn money through gold as well.

Why is this special for small investors?

Small investors no longer need to spend lakhs of rupees; they can initiate their trading journey with units as small as 10 grams. Since trading takes place at live market prices, the possibility of fraud is eliminated. Another key feature is its liquidity; this means the contract can be bought and sold on the NSE whenever desired. Furthermore, as the entire process is digital, investing in this instrument is safer and easier compared to investing in physical gold.

How to Invest?

To invest in 10-gram gold futures, you must possess both a Demat account and a Trading account. You can open these accounts through your bank or a brokerage firm. These accounts are the standard tools used for buying and selling securities in the stock market. Once your Demat account is active, you can navigate to the NSE's commodity segment and begin investing—specifically, by investing in the 10-gram Gold Futures Contract. However, it is crucial to pay close attention to the contract's expiry date and margin requirements.

What is an Expiry Date? In the context of gold, the expiration date refers to the day on which a gold futures or options contract expires. On this day, you must either close your trade or roll it over into the contract for the following month.

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