The Thailand Futures Exchange (TFEX) is set to launch its Mini Gold Online Futures (MGO) contracts on May 25, aiming to attract more retail investors as global gold prices continue to gain attention amid market volatility.
The new product lowers the entry barrier for gold futures trading by reducing the contract size to one-tenth of the standard Gold Online Futures contract, making gold investment more accessible to smaller investors seeking portfolio diversification and risk management tools.
Triwit Wangvorawudhi, managing director of TFEX, said the launch reflects growing demand for investment products that are both efficient and easy to access during periods of heightened global uncertainty.
"In a volatile market, investors are looking for tools that are not only effective, but also easy to access," he said, adding the MGO allows investors to invest in gold without worrying about exchange-rate fluctuations.
Despite its smaller size, the MGO contract continues to reference 99.5% purity global gold prices and retains the quanto feature, meaning contracts are quoted in US dollars but settled in baht using a fixed multiplier to eliminate foreign exchange risk.
The product is available for trading during both day and night sessions, from 9.15am to 3am the following day, through all TFEX member brokers.
Gold-related products account for 10-11% of total trading value on the exchange, while equity-index derivatives remain dominant at roughly 70%.
Market participants expect the share of gold trading to rise further as smaller contracts help broaden participation among retail investors.
The MGO contracts are designed to provide investors with more flexibility in managing portfolio exposure.
With an estimated contract value of around 140,000-150,000 baht, compared with roughly 1.5 million baht for standard Gold Online Futures, the product targets investors with mid-sized portfolios seeking partial exposure to gold.
A single MGO contract represents exposure equivalent to holding roughly 2 baht-weight of gold, meaning gains and losses can fluctuate rapidly alongside global gold prices.
TFEX expects the MGO contracts to support broader investor participation while strengthening Thailand's derivatives market, noted Mr Triwit.
