Commodity Market Lot Size in MCX India
When trading commodities on the Multi Commodity Exchange of India (MCX), it is essential for investors to know the applicable lot size for each contract. The lot size refers to the standardized quantity or amount that you can buy or sell for a commodity. Understanding MCX lot sizes is key to properly calculate your contract trade values, brokerage costs as well as profit/loss implications.
For instance, the lot size in MCX gold futures is 10 kg. So if you buy 1 lot of gold futures, you are essentially buying 10 kg of gold through the contract. This also means that the price quotation for gold futures is based on price per 10 kg. Likewise, the crude oil futures lot size on MCX is 100 barrels which is the base quote quantity.
Some other popularly traded commodities and their MCX lot sizes are - silver 30 kg, copper 1 tonne, natural gas 1250 mmBtu, nickel 1 tonne, lead 5 tonne and agricultural commodities like refined soy oil 10 tonne among others. The exchange has standardized these lot sizes to suit the average risk appetite and affordability of Indian retail traders & investors.
It is vital to check the commodity-wise permissible lot sizes on MCX before placing your orders. Some contracts have mini lots of one standard lot, so you can place smaller orders based on your intraday and delivery trades. Having clarity on MCX lot size specifications will ensure you buy/sell the intended contract quantity and can effectivealy implement your trading strategies around commodities. It also aids in optimizing your margins and calculating precise profits or losses per trade. So always cross-check the latest lot size and contract specifications before hitting the Buy or Sell button!
MCX Trading Lot Sizes: A Comprehensive Overview for Indian Markets
Understanding the MCX lot size specifications is crucial for every commodities trader in the Indian derivatives market. Each commodity contract on the Multi Commodity Exchange follows standardized lot sizes that enable smooth trading and settlement processes across various segments including bullion, base metals, energy, and agricultural commodities. For precious metals like gold and silver, the exchange has thoughtfully designed different contract variants to accommodate both small and large traders - from Gold Mini with 10 grams to Gold Maxi at 1 kilogram. Base metals including copper, zinc, lead, nickel and aluminum maintain specific lot sizes aligned with international exchanges to facilitate effective hedging and trading. The energy segment covering crude oil and natural gas follows globally synchronized standards, with crude oil traded in barrels and natural gas in MMBtu units. The agricultural commodities segment features varying lot sizes based on typical production and consumption patterns in the Indian market, making it easier for farmers and traders to participate effectively in price discovery and risk management.
How MCX Lot Sizes Impact Your Trading Strategy and Risk Management
The strategic importance of lot size determination in commodity futures cannot be overstated for active MCX market participants. Proper lot size knowledge directly impacts margin requirements, position sizing, and overall risk management in commodity trading. Most agricultural commodities on MCX maintain lot sizes that correspond to common wholesale trading units - for instance, cotton is traded in bales while spices are typically traded in quintals. The exchange periodically reviews and adjusts lot sizes based on market feedback and trading volumes to ensure optimal market depth and liquidity. Understanding these specifications helps traders calculate their exact exposure, required margin money, and potential profits or losses more accurately. For retail traders, mini contracts with smaller lot sizes provide an excellent starting point to learn commodity trading without requiring substantial capital investment. Professional traders often utilize multiple contract variants with different lot sizes to create sophisticated trading strategies, spread positions, and arbitrage opportunities across various commodity segments.
Hope you have read our previous post about commodity trading in India. Here is the chart of lot size of different commodities traded in mcx.
Commodity trading lot size or Commodity market lot size
| Future Contract | Lotsize | Profit or Loss for every 1 Rupee Movement of Underlying |
|---|---|---|
ENERGY COMMODITIES |
||
| CRUDEOIL | 100 BBL | 100 |
| NATURALGAS | 1250MMBTU | 1250 |
PRECIOUS METALS |
||
| GOLD | 1 KG | 100 |
| GOLDGUINEA | 8 GRAMS | 1 |
| GOLDM | 100GRAMS | 10 |
| GOLDPETAL | 1 GRAM | 1 |
| SILVER | 30 KGS | 30 |
| SILVER1000 | 1 KGS | 1 |
| SILVERM | 5 KGS | 5 |
| SILVERMIC | 1 KG | 1 |
BASE METALS |
||
| ALUMINIUM | 5 MT | 5000 |
| ALUMINI | 1 MT | 1000 |
| COPPER | 1 MT | 1000 |
| COPPERM | 250 KGS | 250 |
| NICKEL | 250 KGS | 250 |
| NICKELM | 100 KGS | 100 |
| ZINC | 5 MT | 5000 |
| ZINCMINI | 1 MT | 1000 |
AGRI COMMODITIES |
||
| CARDAMOM | 100 KGS | 100 |
| COTTON | 25 BALES | 25 |
| CPO | 10 MT | 1000 |
| KAPAS | 4 MT | 200 |
| MENTHAOIL | 360 KGS | 360 |
Open a free Fyers demat account now with links below
OPEN FYERS ACCOUNT
0 Comments