Everything You Need To Know About Crude Oil Mini Futures Launched By The MCX
The Multi Commodity Exchange of India (MCX) is re-launching its Crude Oil Mini futures contracts, starting from March 3, 2023. The Crude Oil Mini futures were discontinued in December 2019, but now they're back and expected to provide a significant advantage for commodity traders who prefer trading in smaller quantities. The usual Crude Oil futures contract on MCX is a 100-barrel contract, but the Crude Oil Mini futures contract is a 10-barrel contract. This means that the margin required to trade in one lot of Crude Oil Mini will be approximately one-tenth of the margin needed for the regular Crude Oil futures contract. The price pattern and underlying product will remain the same for both contracts. The quotation of the Crude Oil Mini futures contract will be 'Rs per barrel', and the settlement price will be based on the New York Mercantile Exchange's Crude Oil front-month contract, which is the same as for MCX's Crude Oil futures contract. The underlying product for both contracts is Light Sweet Crude Oil. Here's a quick comparison between the two Crude Oil contracts on MCX:
| Parameter | Crude Oil | Handle |
|---|---|---|
| Symbol | CRUDEOIL | CRUDEOILM |
| Segments | Futures & Options | Futures |
| Trading Unit | 100 barrels | 10 barrels |
| Quotation/Base value | Rs per barrel | Rs per barrel |
| Tick Size (Min Price Chg) | Re 1 | Re 1 |
| Underlying | Light Sweet Crude Oil | Light Sweet Crude Oil |
| Margin Req for 1 Lot | ~ INR 2,00,000 | ~ INR 20,000 |