Download MCX Margin List 2021 PDF
You can download the MCX Margin List 2021 PDF for free using the direct download link given at the bottom of this article.
| File name | MCX Margin List 2021 PDF |
| No. of Pages | 3 |
| File size | 314 KB |
| Date Added | Jul 24, 2022 |
| Category | General |
| Language | English |
| Source/Credits | Drive Files |
MCX Margin List Overview
The total MCX margin for positional trading comprises of the MCX Span Margin, Exposure Margin and the Extreme Loss Margin (ELM). The margins for intraday trading in the MIS product type are usually a percentage of the margins required for positional trading.
The additional tender margin on commodities is charged to cover the risk of large price fluctuations in commodity contracts that can happen close to expiry. For instance, in April 2020 the Crude Oil contract had expired with a negative price value.
Margin Rule:
Margins allow traders in the stock market to buy shares on credit. Lower the margin requirements, the less the funds a person needs to invest to put through a trade.
The new margin rules require the closing position to be Rs 2 lakh and you could intra-day exceed this amount. The peak margin rules instead limited the exposure through the trading day to Rs 2 lakh”. , CEO, FYERS. The new framework will come into effect from August 1.
MCX Demat Account
MCX Demat Account is similar to the Demat account of BSE that helps you invest your money in different commodities in the stock market. From 2003 to 2015, the Demat Account of MCX was regulated by the Forward Market Commission and later on, it integrated with the Securities and Exchange Board of India (SEBI).
The types of margin include in mcx:
Initial Margin:
Customer’s funds put up as security for a guarantee of contract fulfilment at the time a futures market position is established.
Additional Margin:
Margins imposed on both long and short sides over and above the other margins, would be called additional margin.
Special Margin
The margins which are imposed only on one side, i.e. either on long side or short side would be called as special margin.
Tender period margin
Tender period margin is imposed at such percentages as defined in the product/ contact specification. Such margin is imposed on incremental basis and applicable on both outstanding buy and sales side, which continues up to the expiry of the contract. Tender Period margin is released for the position when Delivery Period Margin is imposed.
Delivery Period Margin
When a contract enters the delivery period at the end of its life cycle, delivery period margin is imposed as per contract specification. Such margin is applicable on all outstanding buy and sales side and continues up to the settlement of delivery obligation. When a seller submits delivery documents along with surveyor’s certificate, his position is treated as settled and his delivery period margin to such extent is reduced. When a buyer pays money for the delivery allocated to him, his delivery period margin is reduced on such quantity for which he has paid the amount.
Extreme Loss Margin
Extreme Loss Margin (ELM) is levied to cover the expected loss in situations that lie outside the coverage of the SPAN based initial margin.
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