As per the MCX circular dated 28th April, in view of the increased volatility in Crude Oil contracts, MCXCCL has put in place the below risk management measures to cover fluctuations in Crude Oil prices.
- Initial Margins:
An initial margin of 100% shall be levied for all existing and yet to be launched Crude Oil contracts. Minimum Initial margin of Rs. 95,000/- per lot shall be levied.
- Additional Margins:
An additional margin of Rs.1,00,000/- per lot shall be levied on near month Crude Oil Futures contract and on the short side of near month Crude Oil Options contract. Further, an additional margin of Rs.50,000/- per lot shall also be levied on all other Crude Oil Futures contracts and on the short side of Crude Oil Options contracts (including yet to be launched Crude Oil contracts).
- Based on the price movements, the further additional margin will also be levied. The above risk measures will be applicable from tomorrow i.e 30th April. Refer the circular for illustration on the levy of additional margins.
FYERS Policies on Commodities will be applicable over and above this.
Traders kindly take a note of this.