The gold price is more than the margin, but for crude the price is less than margin, why to give 3 times price as margin for crude oil?
Crudeoil lot size is 10 barrels per contract so contract value is 8775*10=87,750
Margin is calculated based on this contract value
No this isn’t the explanation, the explanation is that CRUDEOILM demands more margin
| Commodity | Contract Value | NRML Margin | Effective Leverage |
|---|---|---|---|
| CRUDEOILM | ₹81,050 | ₹35,013 | ~2.3× |
| GOLDTEN | ₹162,563 | ₹23,490 | ~6.9× |
Gold isn’t as volatile as Crude.
Thank you, But still my confusion is price of Gold showing 161200 and margin showing correctly as 15%.
But for for crude price is 8105, is that suppose to se 81050? Then the margin is 35013.
My doubt is why the price showing for 1BBL for CrudeOil where as gold correcly showing for 10 GRMS?
I got the answer. gold price is per lot rest is per quantity.