When you buy gold futures on the MCX, you can either do a square up of the position or you can take physical delivery or give physical delivery of gold. In case you are the seller of gold you are required to give delivery of gold of serially numbered gold bars supplied by LBMA approved suppliers only. Also your delivery should be of 995-purity and below that will not be accepted. In case you give delivery of 999-purity, gold then you will get a premium credit for the higher grade offered. The alternative to physical delivery of gold is to square off your position. Remember, since the settlement of the gold contract is on the 05th of each month, you need to give notice of non-delivery and square off your position latest by the 01st of the month. While there are four sub-contracts available, it is Big Gold with a lot size of 1 kilogram that is the most popular and also the most liquid. Gold futures surely form an important method of taking your view and your position in gold without the hassles of storage and safety. MCX is the biggest exchange in terms of volumes and gold is among the most liquid contracts in terms of commodity futures.