Gold Interday Gap Strategy

MCX Intermediate GOLD GOLDM GOLDPETAL

Exploits Price Gaps Between Sessions

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Quick Reference

Strategy Type Gap Trading and Mean Reversion
Market Outlook Exploits Price Gaps Between Sessions
Risk Profile Moderate Risk with Quick Resolution
Reward Profile 1.5:1 to 3:1 Risk-Reward on Gap Fills
Time Horizon Intraday to 1-3 Days
Capital Requirement Medium (₹1,50,000 - ₹4,00,000 for margin)
Margin Type MIS for Intraday Gap Fills and NRML for Extended Holds
Best Used When Gold opens with significant gap from previous close due to overnight global moves

When to Use This Strategy

Gold opens with significant gap from previous close due to overnight global moves

India-Specific Notes

Lot Sizes

GOLD 100 grams per lot (1 kg contract)
GOLDM 10 grams per lot (Mini contract)
GOLDPETAL 1 gram per lot (Petal contract)

Margin Requirements

MIS Reduced intraday margins approximately 50% of NRML
NRML Full SPAN plus Exposure margins approximately ₹1,50,000 per GOLD lot

Gap Timing

Morning Gap 9:00 AM open versus 11:30 PM previous close reflects overnight COMEX moves
Best Analysis Window 8:55-9:00 AM pre-market for gap assessment
Typical Fill Window First 2-4 hours for most gap fills

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