What is the lot size of crude oil in MCX
What is the lot size of crude oil in MCX?
The lot size for crude oil futures contracts traded on the MCX (Multi Commodity Exchange) in India is 10 metric tons. This means that each contract represents 10 metric tons of crude oil.
The value of one lot of crude oil futures on the MCX can be calculated by multiplying the price of the futures contract by the lot size. For example, if the price of crude oil is Rs. 4000 per metric ton, the value of one lot of crude oil futures would be Rs. 40,000 (4000 x 10). It’s important to note that the lot size and margin requirement for trading crude oil may change from time to time and you should always check the updated information from the MCX website or from your trading platform before placing any trade.
How is MCX margin calculated?
The margin requirement for trading crude oil futures on the MCX (Multi Commodity Exchange) in India is calculated using the SPAN margin method. SPAN (Standard Portfolio Analysis of Risk) is a system that calculates the margin requirement for futures and options contracts based on the volatility of the underlying instrument.
The SPAN margin method considers various market risk parameters such as the price of the underlying instrument, volatility, and open interest. The margin requirement is determined by taking into account the potential loss that could occur in the worst-case scenario, also known as the extreme loss scenario.
The margin requirement for crude oil futures on the MCX will be determined by the exchange and will vary depending on the current market conditions. The margin requirement is usually expressed as a percentage of the total contract value.
It’s important to note that the margin requirement for trading crude oil futures on the MCX may change from time to time and you should always check the updated information from the MCX website or from your trading platform before placing any trade.