Contract Specifications for Silver Trading on MCX
When it comes to silver trading on the MCX (Multi Commodity Exchange), there are certain contract specifications that you need to be aware of. These specifications outline the details of the silver contracts traded on the MCX, including the size, trading hours, delivery months, and other important factors.
Contract Size
Silver contracts on the MCX are standardized and are typically traded in lots. The standard lot size for silver trading on the MCX is 30 kilograms.
Trading Hours
The trading hours for silver on the MCX follow a specific schedule. The market opens at 10:00 AM and closes at 11:30 PM from Monday to Friday. It’s important to note that trading hours may be subject to change based on market holidays or other factors.
Delivery Months
Silver contracts on the MCX have specific delivery months. Typically, silver contracts have a near-month contract, a next-month contract, and a far-month contract available for trading. For example, if the current month is January, you may have contracts for February, March, and April available for trading.
It’s important to keep track of the delivery months as they impact the pricing and maturity of the contracts. As the contract approaches its delivery month, the prices may be influenced by factors such as supply and demand dynamics.
Additional Specifications
In addition to the contract size, trading hours, and delivery months, there are a few other specifications to keep in mind for silver trading on the MCX:
- Price Quote: The price of silver contracts on the MCX is quoted in rupees per kilogram.
- Tick Size: The tick size, which represents the minimum price movement, is ₹1 per kilogram.
- Final Settlement Price: The final settlement price is determined based on the international spot price of silver and is converted into Indian rupees.
It’s essential to familiarize yourself with these specifications before engaging in silver trading on the MCX. Understanding the contract specifications can help you make informed trading decisions and manage your risk effectively.
By Astrobulls research pvt ltd