On What Basis a commodity price is Bought and Sold

General
1

I am a fresher and had the following doubt.

Eg:

Commodity - Alumini

Lot Size - 1 MT

Price of 1 kg - 123.45

NRML margin - 6172

MIS margin - 2469

When I have to buy 1 MT of Alumini I should pay (123.45 * 1000) (because 1 MT = 1000 KG) which is 123450 Rs… but in NRML margin how come I pay only 6172 Rs. On what basis this value is fixed. I can see all the other commodities also have this price variance. If any one could help on this doubt it would be thank full…

Please refer the link for margin calculator

https://zerodha.com/margin-calculator/Commodity/

1 Like
2

As it is futures contract, exchange ask trader to keep only "initial margin(span margin)" it is a certain percentage of total value of the contract.

and percentage will as below

SR. NO  Span Script Span Margin Amount Span Margin %
1 ALUMINI 6172.5 5
2 ALUMINIUM 30862.5 5
3 BRCRUDEOIL 31825 5
4 CARDAMOM 4688 5
5 COPPER 21022.5 5
6 COPPERM 5256.25 5
7 COTTON 22875 5
8 CPO 25555 5
9 CRUDEOIL 29750 5
10 GOLD 143440 5
11 GOLDGUINEA 1152.5 5
12 GOLDM 14283.5 5
13 GOLDPETAL 147.15 5
14 GOLDPTLDEL 149.95 5
15 GUARGUM 67900 10
16 GUARSEED 25375 10
17 KAPAS 9680 5
18 KAPASKHALI 9090 5
19 LEAD 33675 5
20 LEADMINI 6732.5 5
21 MENTHAOIL 12776.7 5.06
22 NATURALGAS 19664.25 6.68
23 NICKEL 17046 6
24 NICKELM 6818.4 6
25 POTATO 11137.5 5
26 SILVER 64975.5 5
27 SILVER1000 2195 5
28 SILVERM 10833.75 5
29 SILVERMIC 2166.65 5
30 ZINC 34775 5
31 ZINCMINI 6955 5

This span margin will be the NRML margin and MIS margin will be 40% of NRML margin

2 Likes
3

Thanks for the solution…
So for every commodity we can buy 1 lot with only 5 % (or the mentioned percentage) of the entire lot value…Is it correct Nagaraju…
Normal commodity trade is otherwise called future contract am I correct…

4

All commodity in MCX you have to buy in lot size with mentioned span margin ,
and
All commodity are future contract.

5

Understood …Thank u Nagaraju…