Gold remains India’s favorite store of value—but trading it for returns often requires huge capital and complex setups. Leveraged and tokenized gold trading now lets you participate in gold’s price movements with less capital, more flexibility, and 24/7 access. Here’s how it works and how to start.
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Leveraged gold trading means controlling a large gold position with a relatively small amount of capital. Instead of paying the full value upfront, traders deposit a margin—often 5–10% of the trade’s size—while borrowing the rest from the broker.
This leverage (like 10× or 20×) amplifies both profits and losses: a 1% move in gold’s price could mean a 10–20% gain or loss on your capital. It’s commonly done via futures, options, allowing traders to speculate on gold’s price without owning the metal physically.
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Gold trading is about profiting from changes in gold’s price without necessarily owning the metal. Traders buy when they expect prices to rise and sell when they expect them to fall, using instruments like futures, options, or tokenized gold.
The principle is simple: treat gold as a financial asset whose price reflects global demand, inflation, and currency strength. By timing entries and exits—or using leverage—traders amplify small moves for higher returns. In essence, gold trading converts the world’s oldest store of value into a dynamic, liquid opportunity for modern investors.
For example, if gold moves from ₹60,000 to ₹61,000 per 10g, a trader using 10× leverage earns a 10% gain on margin. The same move against them means a 10% loss.
Trade standardized gold contracts on the Multi-Commodity Exchange (MCX) with margins as low as 5–10%. Each contract represents a fixed quantity of gold (like 1 kg, 100 g, or 1 g in “Gold Petal”). Traders can go long or short to profit from price swings. It’s fully regulated by SEBI, offers good liquidity, and suits active traders comfortable with daily mark-to-market settlements.
Gold options let you control a large position by paying only a small premium for the right—but not the obligation—to buy or sell gold at a preset price. They offer limited downside and flexible leverage, making them ideal for traders who want exposure without risking margin calls.
XAUt is a tokenized version of physical gold, backed by Tether and linked to real, serial-numbered bars stored in Swiss vaults. On compliant crypto platforms like Mudrex, traders can access gold’s price movement 24/7 and use leverage (typically up to 5–10×) when trading against stablecoins like USDT. It combines gold’s intrinsic stability with the liquidity and speed of digital markets.
Select brokers allow margin-based trading or collateralized borrowing against holdings in Gold ETFs such as Nippon India Gold ETF or HDFC Gold ETF. While leverage is modest (1.5×–2×), it’s SEBI-regulated, Demat-friendly, and ideal for long-term investors seeking mild leverage within a secure framework.
| Option | Leverage Range | Regulation | Trading Hours | Liquidity | Best For | Key Advantages | Main Risks |
| MCX Gold Futures | 5×–10× | SEBI-regulated (Multi-Commodity Exchange) | Mon–Fri, 9 AM–11:30 PM | Very High | Active traders & speculators | Transparent pricing, deep liquidity, flexible lot sizes | Daily MTM settlements, potential for heavy losses if over-leveraged |
| Gold Options (MCX) | 5×–10× (implicit through premium) | SEBI-regulated | Mon–Fri, 9 AM–11:30 PM | High | Swing traders & hedgers | Limited downside risk (premium only), flexible strike selection | Time decay can erode option value |
| XAUt (Tether Gold) on Crypto Exchanges | Up to 50x | Crypto trading under VDA framework (unregulated by SEBI but legal to hold/trade) | 24×7, global access | Medium-High | Tech-savvy traders are comfortable with crypto | 24/7 trading, global liquidity, no expiry | Crypto exchange risk, volatility in funding rates |
| Gold ETFs with Margin / Pledge | 1.5×–2× | SEBI-regulated (Mutual Fund structure) | NSE/BSE market hours | Moderate | Long-term investors, conservative traders | Safe, easy to pledge or borrow against | Low leverage, slower price |
ALSO READ: How to Buy Gold with Mudrex in 3 Steps
Gold tokenisation leverages blockchain technology and offers a modern, accessible, and efficient way to invest in gold, providing retail traders with unique advantages over traditional gold investment methods like physical bullion, ETFs, or futures contracts.
Tokenised gold also combines the best advantages of all alternative forms of Gold trading that is available. Here are some reasons why trading tokenised gold is better.
In India, gold is a cornerstone of saving. 10g of 24k gold costs 1.26L as of Oct 2025. The high price makes physical gold purchases challenging for small investors.
Tokenised gold(Tether Gold)enables fractional ownership, allowing traders to buy as little as 0.01 grams (about ₹75) through crypto trading platforms. Additionally, these tokenised gold assets are backed by LBMA-certified gold.
For example, an Indian retail trader with ₹1,000 can invest in tokenised gold, compared to the ₹7,500-8,000 needed for a single gram of physical gold, including 3% GST and 5-10% making charges.
This means that more investors, younger investors, can invest and trade gold within the constraints of their capital.
ALSO READ: Tokenizing Real-World Assets: The Next Big Thing In Crypto
Indian traders often face concerns about gold purity and counterfeit products, with 10-12% of gold jewellery in rural markets found to be substandard.
Blockchain-based tokenised gold ensures transparency by recording details like gold purity (99.99%), serial numbers, and vault locations on an immutable ledger.
Tokenised Gold platforms provide real-time audits accessible via blockchain explorers, offering a trustworthy alternative to Indian traders who are wary of fraudulent dealers.
Unlike traditional markets, where intermediaries add opacity, blockchain reduces reliance on middlemen, cutting costs by 1-2% and ensuring authenticity.
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Physical gold in India, such as jewellery or coins, often incurs 5-15% resale losses due to making charges and dealer spreads.
Tokenised gold, traded on global and Indian crypto platforms, offers high liquidity with 24/7 trading and daily volumes.
Indian traders can sell tokens instantly, avoiding the delays of visiting jewellers or pawnshops.
Additionally, tokenised gold can be used in decentralized finance (DeFi) platforms. India’s DeFi adoption is growing, and this allows traders to leverage gold tokens for loans or yield farming, offering financial flexibility and portfolio expansion, unavailable with physical gold or Sovereign Gold Bonds (SGBs).
ALSO READ: What Is DeFi And How Does It Work?
Traditional gold purchases in India involve significant costs:
Gold ETFs, like Nippon India Gold ETF, charge 0.79% annual fees (NSE, 2025).
Tokenised gold eliminates these expenses, with platforms like XAUT charging as low as 0.02% for transactions and no storage fees for digital holders.
For a ₹10,000 investment, physical gold might lose ₹1,500-2,000 to premiums, while tokenised gold trades near spot prices, maximizing returns for Indian traders.
India’s gold demand is driven by its role as a hedge against rupee depreciation, which weakened 2.5% against the USD in 2024.
Tokenised gold enables Indian traders to access global gold markets without the logistical hurdles of physical gold, such as 10% import duties or shipping costs.
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Tokens can be traded instantly on blockchain networks with fees under ₹100, compared to ₹2,000-5,000 for physical gold logistics. This is particularly valuable for Indian traders in smartphone-friendly Tier-2 and Tier-3 cities, where access to reliable gold dealers is limited.
Leveraged tokenized gold trading, like with XAUt (Tether Gold), combines the reliability of physical gold with the agility of digital markets. It lets you trade gold’s price 24/7 using only a fraction of the capital—thanks to leverage.
For example, if XAUt rises from $2,400 to $2,440, a trader using 5× leverage earns a $200 profit on just $1,000 margin. The same move in reverse would mean a $200 loss.
In essence, tokenized gold delivers gold’s stability with crypto’s speed, global liquidity, and flexibility—ideal for traders who value both security and efficiency.
For example, if XAUt rises from $2,400 to $2,420—a 0.8% move—a trader using 50× leverage would earn a 40% gain on their margin.
In leveraged crypto futures (like XAUt perpetuals), your risk is capped. Even at 50× leverage, you never lose 50× your capital—only your margin. If the market moves too far against your position, it’s automatically liquidated, ensuring your maximum loss is limited to your initial margin. This makes perpetual futures a controlled way to access high leverage without the risk of going negative.
EXAMPLE: If you open a $5,000 XAUt position using 50× leverage, you only put up $100 as margin. If gold’s price drops by about 2%, your position is liquidated, and you lose your $100 margin—not the full $5,000.
ALSO READ: How Much Leverage Is Too Much? A Risk-Based Guide for Crypto Futures – Mudrex Learn
Find the Right Crypto Platform
Before you start, choose a platform that’s secure, compliant, and transparent.
Here’s what to look for:
– Regulatory alignment: Operates within India’s crypto VDA and taxation framework, with mandatory KYC and AML compliance.
– Verify that the platform lists a legitimate, audited tokenized gold contract (XAUt/USDT)
– Built-in risk controls: Access to stop-loss, take-profit, and liquidation alerts.
Why Choose Mudrex?
Mudrex checks all boxes.
Mudrex is an India-registered, FIU-compliant platform that follows all crypto VDA norms and integrates full KYC and AML verification. It offers 24/7 XAUt perpetual futures, instant INR deposits, and automated risk management tools, making it a safe and efficient gateway for Indian traders entering leveraged gold trading.
Download the Mudrex app, sign up, and complete KYC verification. Once approved, deposit INR and move funds into your Futures wallet.
– Open the Futures tab in your Mudrex app.
– Search for Gold (XAUt) Futures.
Here, you’ll see live prices, leverage options, and contract details.
Go Long (Buy): if you expect gold’s price to rise.
Go Short (Sell): if you expect it to fall
Choose:
– Market Order for instant entry, or
– Limit Order to enter at your chosen price.
Enter your contract size and select leverage — higher leverage increases potential gains and risk.
Set Stop-Loss and Take-Profit levels to automate exits and protect capital. This ensures you don’t lose more than planned and lock in profits as prices move in your favor.
Review your trade details and tap Confirm. Once live, track performance in your Mudrex Portfolio dashboard.
Leveraged and tokenized gold trading now gives Indian investors a faster, more flexible way to capture gold’s price movements — without the capital lock-in of traditional futures. With XAUt Gold Futures on Mudrex, you can participate in gold trading 24/7, start small, and use leverage to maximize exposure while keeping risk capped to your margin.
Yes. Traders can use leverage to control larger gold positions with less capital. In India, this is done through MCX gold futures and options or via tokenized gold (XAUt) perpetual futures on compliant crypto platforms like Mudrex. Leverage amplifies both profits and losses, so traders should apply strict risk management, such as stop-loss orders and position sizing.
The ideal leverage depends on your risk tolerance and experience. Beginners should start conservatively at 2×–5×, ensuring they can handle small price swings without liquidation. Experienced traders may use 10× or higher on crypto platforms like Mudrex—but only with tight risk controls. Remember, lower leverage helps you stay in trades longer and reduces emotional decision-making.
Gold’s price is influenced by global sessions, so overlaps between London and New York markets (5:30 PM–11:30 PM IST) often see the highest volatility and liquidity. However, tokenized gold (XAUt) trades 24/7, giving Indian traders flexibility to act anytime—ideal for those who monitor price moves beyond traditional market hours.
On traditional Indian exchanges like MCX, leverage typically ranges from 5×–10×, depending on volatility and margin rules. Mudrex offers up to 50× leverage while using XAUT futures. But it is recommended to use such high leverage requires an advanced understanding of liquidation and risk management.
Krishnan is a Bangalore-based crypto writer dedicated to simplifying complex crypto concepts. He covers blockchain, DeFi, and NFTs, with a focus on real-world asset tokenization and digital trust. Previously he has written on Real Estate related assets for NoBroker. Krishnan holds a B.Tech degree from the College of Engineering Trivandrum.
