MCX hikes gold, aluminium margins by 5%

The Multi Commodity Exchange of India (MCX) has imposed special margins and additional special margins on commodity contracts in order to reduce volatility.

The additional and special margins have been imposed on aluminium, brent crude oil, crude oil, copper, gold, gold mini, gold HNI, silver, silver HNI, silver mini, zinc contracts, cumin seed (jeera) and mentha oil contracts.

An additional margin of 5% has been imposed on members having net short positions in their account as well as their clients' account for all contracts of aluminium, copper, silver, silver mini, silver HNI and zinc.
The additional margin will be in addition to the initial margin and special margin, if any, on the contracts.

The total long margin and total short margin on aluminium and copper are 10% and 15%, respectively, which includes an initial margin of 5%, total special margin of 5% and additional margin on net short open position which is also 5%.

The total long and short margin is 8% each on brent crude oil and crude oil, which includes an initial margin of 5% and total special margin of 3%. The total long and short margin is 10% each on gold, gold HNI and gold mini, which includes an initial margin of 4% and 6% total special margin.

The total long and short margin on silver, silver HNI and silver mini is 13% and 18% respectively, which includes 5% initial margin, total special margin of 8% and 5% additional margin on net short open position. The total long and short margin on zinc is 12% and 17% respectively, which includes 5% initial margin, total special margin of 7% and 5% additional margin on net short open position.

The above margin was calculated at the end of the trading hours on Monday, May 22 and would be blocked from the available deposits of the member. Such reduced deposit is considered for the purpose of trading with effect from Tuesday, May 23.

MCX has also levied a special margin of 2% on cumin seed (jeera) and mentha oil on members having open positions (both buy and sell side) in their account as well as their clients account.

The special margin imposed on jeera and mentha oil would be in addition to the initial margin and the additional margin of 5% on the net long open position on the cumin seed (jeera) and menta oil contracts effective Tuesday, May 23.

Henceforth, a 7% daily initial margin along with an additional margin of 5% is levied on members having net long open positions and a special margin of 2% would be applicable on cumin seed (jeera) contracts.

An 8% daily initial margin along with an additional margin of 5% is levied on members having net long open positions and a special margin of 2% would be applicable on mentha oil contracts.