What is the difference in margin requirement between commodes vs equity

[curiousvi]

I understand there is increased margin requirement in last week of expiry in equity.

Is it same in commodity like Gold and silver?
I mean margin is increased in final week?

Can we take physical delivery of Gold if its in the money …? @ShubhS9

I have the same question about currency futures and options. i.e. usdinr

[ShubhS9]

@curiousvi

Is it same in commodity like Gold and silver?
I mean margin is increased in final week?

Yes, additional margins are applicable, these are charged by the exchange, you can check this on the contract specifications page on MCX website.

@curiousvi

Can we take physical delivery of Gold if its in the money …?

No, we don’t allow physical settlement of Commodity derivatives and ask clients to square-off the position before start of delivery period. Explained here.

@curiousvi

I have the same question about currency futures and options. i.e. usdinr

Currency F&O are cash settled, there are no additional margins applicable.

[curiousvi]

@ShubhS9

we don’t allow physical settlement of Commodity derivatives

I would like to know why?