Dubai has emerged as one of the cheapest places to trade gold futures as margin fees on such contracts traded on the Dubai Gold and Commodities Exchange (DGCX) are much lower than on many more established markets around the world.
To trade one 100-troy-ounce gold futures contract on New York's Comex, traders must pay a margin, or fee, of about US$12,600 (Dh46,281). In Dubai a 32-ounce contract carries a margin of $1,300, meaning it would cost about $4,000 to trade the same quantity of gold futures as Comex's 100-ounce contract.
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"DGCX has a very competitive margin structure compared with Comex," said Junaid Anwar Kahn, the head of trading at National Bank of Fujairah. "From 2008 to 2011 Comex raised its margins substantially to curb volatility and DGCX has taken advantage of that. DGCX has been trying to carve a niche for itself, and it has registered some very impressive gains."
Read more: http://www.thenational.ae/thenationalconversation/industry-insights/economics/dubai-among-cheapest-places-to-trade-precious-metal#ixzz2KQe1n8Fr
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