HKGX maintains the traditional open outcry trading system on its trading floor, which is the traditional trading method of Hong Kong’s gold market. Transactions are conducted verbally in Cantonese, supported by hand signals, to execute trades. Once a trade is executed, the seller must complete a trade registration slip within 15 minutes, and then verified by the buyer. The Exchange then updates participant’s open positions for risk control.
Open outcry products
Trading session: Monday to Friday
From 9:00 am to 12:00 noon; 2:00 pm to 5:00 pm
| Fineness | 99 |
| Contract Unit | 100 taels troy |
| Quote Unit | HKD per tael troy |
| Minimum Bid Unit | HKD 0.5 per tael troy |
| Storage Fee | HKD per 100 taels troy |
| Storage Fee Negotiation Time | Monday to Friday 11:00AM |
| Official Price Negotiation Time | Monday to Friday AM - 11:30 PM - 16:30 |
| Remarks | Taels = Tael Troy, 1 Tael Troy = 37.429 Gram |
The HKD Kilo Gold Contract is a trading product added by our exchange in 2002. The contract details are as follows:
| Fineness | 999.9 |
| Contract Unit | 100 taels troy |
| Quote Unit | HKD per gram |
| Minimum Bid Unit | HKD 0.01 per gram |
| Storage Fee | HKD per kilogram |
| Storage Fee Negotiation Time | Monday to Friday 11:15AM |
| Official Price Negotiation Time | Monday to Friday AM - 11:30 PM - 16:30 |
| Remarks | 1 Tael Troy = 37.429 Gram |
All contract transactions conducted through the trading hall of the exchange through "open bidding" require both parties to pay transaction fees for each contract to the Hong Kong Gold Exchange.
| 99 Tael Gold Contract (100 Taels Troy) | Fee per contract: HK$ 10 (per side) |
| 99 Tael Gold Storage fee (100 Taels Troy) | Fee per contract: HK$ 5 |
| HKD Kilo Gold Contract (1 Kilogram) | Fee per contract: HK$ 3 (per side) |
| HKD Kilo Gold Storage Fee (1 Kilogram) | Fee per contract: HK$ 2 |
HKGX functions as a combined spot and futures market, offering immediate spot delivery and deferred delivery through storage fee payments, alongside futures trading capabilities. Storage fees are transparently negotiated in the market at designated times, with participants seeking physical gold bar delivery registering separately on the board. The daily storage fee is set based on spot supply and demand and Hong Kong dollar interest rate levels.
Monday to Friday
● 10:30 AM sharp (999.9 Tael Gold)
● 11:00 AM sharp (99 Tael Gold)
● 11:15 AM (HKD Kilo Gold Contract)
When spot gold demand is high, buyers taking physical delivery can collect storage fees from sellers opting for deferred delivery as compensation. In this scenario, sellers (short position holders) pay the fee, while buyers (long position holders) receive it, referred to as "high interest" or "premium storage fee" in the industry. Conversely, when spot supply is plentiful (high cash-out demand), buyers requesting deferred delivery pay the storage fee, which sellers receive, known as "low interest" or "discount storage fee." If the quantities for physical gold delivery and receipt balance and both parties agree, the storage fee is finalized. If no interest is paid by either side, it is termed "flat interest." To prevent manipulation, the market imposes limits on storage fee fluctuations, setting upper and lower bounds across five levels. If a physical delivery imbalance persists and reaches a level’s cap, it must remain at that level for three days (including Saturdays, Sundays, and Hong Kong public holidays) before moving to the next level. Maximum storage fee per level (calculated per 1,000 HKD of official price):
| Tier | Daily interest rate | Estimated Annual Interest Rate (Approx.) |
| 1 | 0.03% | 11% |
| 2 | 0.04% | 15% |
| 3 | 0.05% | 18% |
| 4 | 0.06% | 22% |
| 5 | 0.07% | 26% |
