NSE's New Gold Futures Contract

Everything You Need to Know

If you've ever wanted to trade gold on the stock exchange but found the contract sizes too large, NSE has something new coming your way. Starting March 16, 2026, the National Stock Exchange will launch a 10-gram gold futures contract in its commodity derivatives segment. Here's a plain-English breakdown of what this means and how it works.
What Is This Contract and Why Does It Matter?
Most gold futures contracts traded on Indian exchanges have been designed for larger players - institutional traders, big brokers, and bulk buyers. The lot sizes were simply too large for the average retail investor to participate meaningfully. NSE's new Gold 10 Grams Futures contract changes that. By bringing the lot size down to just 10 grams, the exchange is opening the door for smaller traders and retail investors to get direct exposure to gold prices through a regulated, exchange-traded platform. The contract has been approved by market regulator Sebi, which gives it full regulatory backing.
The Basics: Symbol, Lot Size and Trading Hours
The contract will trade under the symbol GOLD10G, with each lot representing exactly 10 grams of 999 purity gold. Trading will be available from Monday to Friday, starting at 9:00 am. The closing time is 11:30 pm normally, and 11:55 pm during the US daylight saving period. The tick size - meaning the smallest price movement allowed - is just ₹1 per 10 grams. The maximum order size per trade is 10 kg, which keeps individual order sizes within reasonable limits. All prices are quoted on an ex-Ahmedabad basis and include import duty and customs levies, but GST is not included in the quoted price.
When Do Contracts Expire?
Contracts are listed on a monthly basis and expire on the last calendar day of that month. If that date happens to fall on a public holiday or a market holiday, the expiry automatically shifts to the previous working day. This is standard practice across most exchange-traded contracts in India.
How Are Price Movements Controlled?
To prevent extreme swings from rattling the market, NSE has built in a layered price limit system. Under normal conditions, the daily price limit is set at 6%. If prices hit that ceiling or floor during a session, trading doesn't stop outright - instead, there is a 15-minute cooling-off period. After that pause, the limit can be widened to 9% if needed. If international gold markets are moving sharply - say, due to a Federal Reserve announcement or a geopolitical shock - NSE can further relax these limits in steps of 3% beyond the 9% cap, with prior notice to market participants.
Margins and Position Limits
Margins will be calculated using either the volatility category method or SPAN (Standard Portfolio Analysis of Risk), whichever produces the higher figure. On top of that, an extreme loss margin of 1% applies to all positions. If volatility spikes, NSE can impose additional margins at its discretion. As for position limits, a broker or member firm can hold a combined open position of up to 50 metric tonnes or 20% of the total market-wide open interest - whichever is higher - across all gold contracts. For individual clients, the cap is 5 metric tonnes or 5% of the market-wide open interest.
Delivery: How the Physical Gold Part Works
This is not a cash-settled contract - it is compulsory delivery-based, which means that positions held till expiry must result in actual physical delivery of gold. The delivery unit is a serially numbered 10-gram gold bar of 999 purity, supplied by either an LBMA-approved refiner or another NSE-approved supplier. Every bar must come with a quality certificate. Delivery happens at NSE Clearing's facilities in Ahmedabad. Pay-in of gold must happen by 11:00 am on E+1 - meaning the working day after the transaction - and this excludes Saturdays, Sundays and trading holidays. The staggered delivery period covers the last three working days of the contract, including the expiry day itself.
How Is the Final Settlement Price Determined?
On the expiry day, around 5:00 pm, NSE polls the spot price of gold in Ahmedabad for 995 purity gold, and then converts it mathematically to reflect 999 purity. That becomes the final settlement price. If the Ahmedabad physical market shuts down unexpectedly and no spot price is available, NSE will step in and determine the settlement price in consultation with Sebi.
The Bottom Line
NSE's 10-gram gold futures contract is a practical move toward making commodity trading more accessible. Smaller lot size, structured risk controls, and a familiar monthly expiry cycle make it easier for retail participants to enter the gold derivatives market without needing the capital or scale that larger contracts traditionally demanded.