New Gold Futures Contract at IME
Economy, Business And Markets

New Gold Futures Contract at IME

Gold coin futures contract for August delivery will be offered form Jan. 11 on the Iran Mercantile Exchange.
Each IME gold coin futures contract is for ten Emami gold coins. Each Emami gold coin is presently valued at 9,885,000 rials.
Currently the IME is offering gold futures with settlement dates from January to July.
The contracts will open without a price change limit. The volatility limit will be imposed on the contracts 30 minutes after the open.
Due to low trade volume, the IME imposes a volatility limit on futures contracts to limit possible price manipulation. The limit for contract price fluctuation is currently under five percent of opening price per day.
The base price for the contract will be determined in an auction before offering the contract for trade. The base price will also establish the daily volatility limit. If the auction does not go as planned, the contract’s offering will be postponed to the next trading session.
Due to high volatility and recent increases in contract prices, the IME raised the initial margin in Tehran’s gold futures market by five percent from Dec. 17.
Traders are required to put up 21 million rials ($601 at market exchange rate) as initial margin for each gold bullion coin futures contract.
The initial margin was lowered in September as Coin futures saw little trading. But now with a hike in futures trade, mirroring the increase of gold coin trade in Tehran’s market, they have been raised.
The initial margin, which must be deposited in the account to start trading contracts, as a down payment for the delivery of the contract and ensuring that the parties honor their obligations, was raised to record highs in 2012, due to an increase in gold coin prices.


Short URL : http://goo.gl/sIbvMs

You can also read ...

Central Bank of Iran Against Market Intervention
Central Bank of Iran's Governor Abdolnasser Hemmati said the...
New Forex Initiative Unable to Tip Scales
The new forex initiative has only managed to fix major policy...
VDMA Backs Iran Trade
Germany’s plastics and rubber machinery trade association,...
Tehran Shows 4th Biggest Upturn in Economist’s Livability Index
Tehran is one of the top five cities in the world to have...
Equity-Based Sukuk Return to Iran Capital Market
The government is set to clear part of its debt to Social...
Musk Bid for Tesla Still Murky
Tesla Inc’s board named a special committee of three directors...
S. Korea Bans Recalled BMWs Over Fire Fears
The South Korean government has said it will ban about 20,000...
Over €81m Worth of Airport Equipment Purchased  Post JCPOA
Iran Airports & Air Navigation Company, an arm of the...