Crude margin reduced by MCX

Crude margin reduced by MCX

by admin- Friday, December 25th, 2020 10:58:57 AM

In April, MCX had levied an initial margin of 100 per cent on crude oil contracts with minimum initial margin of 95,000 per lot after crude prices plunged below zero. It had also put a margin of 1 lakh per lot on near month crude futures contract and on short side of near month crude options contract.

Further, an additional margin of 50,000 per lot was also levied on all other crude futures and on short side of crude options contracts.

On Wednesday, MCX has withdrawn the additional margin of 1 lakh in near month and 50,000 on far month of crude oil futures contracts. The exchange will, however, levy an additional margin based on the price movement.

The benefit of spread on initial margins shall be provided in crude oil contracts only when each individual contract in the spread is from the first three expiring contracts. Spread margin benefit on spread positions shall be entirely withdrawn on the start of the expiry day.

The exchange will continue with extreme loss margin of 1.25 per cent on all crude futures and short positions of all options contracts. The Volatility Scan Range will continue to remain at 20 per cent for all crude options, it said.

News Updates