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What you need to know about physical trading contracts
SGE’s physical trading is a full amount trading, the participants must have full amount of fund or physicals before placing orders. After the settlement, SGE will credit the revenue to seller’s account, and the physicals to buyer’s account on T+0. On T+1, physicals or cash can be withdrawn.
What you need to know about margin trading contracts
Margin trading is trading on margins, participants must have sufficient margins on their accounts.
Margin trading includes fixed date trading – T+N, and non-fixed date trading – T+D. T+N contracts have fixed maturity date, while T+D position could rollover day by day.
T+D Contracts
T+D includes Au (T+D), mAu (T+D) and Ag (T+D)
The participant that holding the T+D position could:
Close out the position
Submit delivery tender to physically settle the position
Automatically rollover the position to next trading day and pay or receive deferred interest
*When there’s an imbalance between delivery tenders, the deferred interest payment and delivery equalizer will occur. Please see the following example:
Deferred Interest
Deferred Equalizer
T+N Contracts
T+N includes Au(T+N1) and Au(T+N2):
√ The maturity date of Au(T+N1) is June 15th
√ The maturity date of Au(T+N2) is December 15th
Till the maturity date, the participant that holding the T+N position could:
√ Close out the position
√ Submit delivery tender to physically settle the position.
On the maturity date, if the participant doesn’t close out or physically settle the position, they will pay or receive the deferred interest and the position will be automatically rollover to the next maturity date.
Currently the deferred interest rate is 3%, the methodology of delivery application and delivery equalizer are the same with T+D products.