Revision in margin requirements for Crude Oil Contracts w.e.f 12th October 2021

As per the MXCCL circular dated October 9, 2021, MCXCCL has reviewed the minimum initial margins, Short Option Minimum Margins (SOMM), and Volatility Scan Range (VSR) in Crude Oil Contracts, the changes will come into effect from the beginning of the day on October 12, 2021, as below:

Applicable Minimum IM % Short Option Minimum Margin % (SOMM) Applicable Minimum MPOR Applicable Minimum VSR (%)
20 20 3 20

Initial Margin in Crude Oil contracts will be higher of minimum initial margin or VaR scaled up by MPOR.

How does this affect me?

From today the minimum margin required for taking the position in 1 lot would be 21.25%, which earlier was 11.75% of the contract value.

Earlier at the current market price, the margin requirement for taking a position in 1 lot of futures was around Rs. 70,500, now the margin requirement will be around Rs. 127,500.