MCX Margin/Investment
Margin is the deposit money that needs to paid to buy or sell each contract of a commodity in MCX exchange.Margin, as used in futures trading, is a good faith deposit of cash.
MCX Margin levels are set by the MCX Exchange based on volatility(Market conditions) & can be changed at any time.Margin is required to trade in MCX ,it s like Investment to put to trade
MCX Margins are differ from commodity to commodity.The margin requirement for MCX commodities trading range from 5 % to 20 % of the value of a contract with a minimum of 5%,except for MCX Gold where the minimum margin is 4 %.
MCX Margin levels are set by the MCX Exchange based on volatility(Market conditions) & can be changed at any time.Margin is required to trade in MCX ,it s like Investment to put to trade
MCX Margins are differ from commodity to commodity.The margin requirement for MCX commodities trading range from 5 % to 20 % of the value of a contract with a minimum of 5%,except for MCX Gold where the minimum margin is 4 %.
Initial Margin
The amount that must be deposited by a person at the time
entering in to MCX trading as called Initial margin. This margin fixed by the
MCX Exchange &its mandatory requirement for parties who are entering in to
the contract. This margin meant to cover the potential loss in one day.
Additional Margin
In addition to Initial margin ,additional margins can be levied
by the MCX exchange.In case of sudden higher than expected volatility, MCX
exchange calls for an additional margin which is pre emptive move to prevent to potential
default. This is imposed when one commodity extremely volatile, that time it
has been put by the exchange/regulator to avoid adverse situation.
MTM
MTM is Mark to Market.MTM .MTM which happens on a continuous basis at the end of each day.
Daily mark to market settlement is done till the date of contract expiry.
When open poisiton held, this MTM be levied for price fluctuations of everyday.The Margin account is adjusted to reflect the investor’s gain (or)loss depending upon the closing price of the commodity in a day. MTM calculated until covering/closing the open position in MCX.
Margin Calculation:
Example
MCX Gold
Previous trading Day/Last trading day closing price In MCX : 30800
MCX Price Quotation(Quoted price) : 10gms
MCX Specified LOT Size (Quantity) : 100
MCX Specified Margin Percentage : 4%
Lot value Of any MCX Commodity = Price quotation*Lot size
Lot Value of MCX Gold = 30800*100 = 30,80,000
Margin Of any commodity to trade in MCX = Lot Value *MCX margin/100
Margin of Gold to trade in MCX = 30,80,000*4/100
Margin/Investment required to Gold in MCX = Rs.1,23,200
Investment required for MCX Gold Regular/Mega(1Kg) = Rs.1,23,200
The Margin/Investment Requirement of MCX Gold
MCX Gold Mini(100 gms) = Rs.10,000-20,000(Approximate,changing everyday)
MCX Gold Guinea (8gms) = Rs.1000-3000(Approximate,changing everyday)
MCX Gold Petal(1gm) = Rs.100-500(Approximate,changing everyday)
MCX Silver
Investment requirement/Margin of MCX Silver
MCX Silver Regular/Mega(30Kg) =Rs.90,000-95,000(Approximate,changing everyday)
MCX Silver Mini(5Kg) = Rs.10,000-20,000(Approximate,changing everyday)
MCX Silver Micro(1Kg) = Rs.3,000-6,000(Approximate,changing everyday)
MCX Silver1000(1Kg,deliverable) =Rs.3000-6,000(Approximate,changing everyday)
To Check All MCX Commodities Daily Margin :Click Here
I think investment consultant will likely be good.
ReplyDelete