After the launch of futures trading in the Bullion index in August 2020, MCX has now launched the futures contracts for the base metal index - iCOMDEX Base Metals. This index tracks the 5 popular base metals i.e., Aluminium, Copper, Lead, Nickel and Zinc.
- The contract will be a monthly contract expiring around the 18th of every month(This is 3 days before the start of the tender period for the underlying futures contracts).
- The lot size of the contract is 50 units of the index. Everyone Rs 1 rupee movement in the contract will result in a Rs 50 Profit or loss
- The index is trading around 11954.73(as of 16 Oct '20), which makes the contract value of about 6L.
- Margin required to trade will be 8%(SPAN +Exposure) of the contract value.
The contract will be cash-settled on expiry.
The futures contract for the Based metal index is available to trade on Kite under the trading symbol- MCXMETLDEX .
Only the current month contract is allowed to trade under the NRML product type. We will soon be opening MIS/CO and other month contracts based on the liquidity situation of the contracts.
Here is the product note and the contract specification from MCX.