How To Trading in MCX Silver Futures

How To Trading in MCX Silver Futures

MCX Group of Companies, Mumbai based Indian Commodity Exchange offers number of monthly and quarterly based MCX Gold Futures for investors to trade with. MCX Gold futures contracts are available in mini, micro, standard and 1000 weights. There are few variants of gold futures viz 10 gram gold futures, 1 kg gold futures and 10 kg gold futures. Gold traders can take the benefit of gold futures contracts to benefit from price movements on basis of current market trends.

While Silver futures is traded in the form of micro lots, the Mini futures contract allows traders to deal in silver contracts in the 1000 Kg or 10 m Troy Ounce denominations 

MCX silver mini futures contracts are mostly traded in various months, such as December and May. Silver mini futures are the most popular contract in MCX due to the high liquidity. As the name suggests, MCX silver mini futures is a very small contract with a notional value of Rs 2 lakhs per lot.

The MCX Silver Mini contract has a base value of Rs. 2500 and its units will be in terms of Kgs with a contract multiplier of 0.001. The MCX silver futures contract allows traders to trade gold at a lower minimum value and an upper maximum of 1,00,000 units.

MCX Silver Mini offers substantial liquidity for all types of silver futures traders. The mini contract is a smaller but equally pertinent indicator of silver futures moves in MCX, as are other silver futures contracts.

 Silver is one of the most precious metals in the world and an exceptionally versatile one, too. With the tools available to professional traders, you can take advantage of its price movements, just like professional traders. You can trade mini silver contracts on the MCX Commodity Exchange (MCX-SILVER-LEV). If your investment horizon is less than 30 days, then you should consider trading mini silver contracts. The minimum margin requirement for mini silver futures contract is 1% of notional spot value (NFSV) which means minimum margin isn’t Rs 100.

Silver is a precious metal and precious metal mining is the main source of silver. Silver Futures are contracts for sale delivery of silver in standardized quantities, grade and quality for a future date and at a contracted price. It provides an excellent opportunity to trade in non-perishable commodities such as gold, silver, or oil metals. Maturity periods for these contracts range from 3-6 months up to one year or longer. Turnover in silver futures is fairly high and volume traded is very large in comparison to the amount of physical silver that actually changes hands.

Because silver is an industrial metal, it is a raw material that is essential to many industries. Silver futures are a popular way for miners and consumers to ensure a stable price for themselves. For consumers, this is a way to get silver at a certain price before it arrives in the shape of jewelry or electronics components of other products.

The mini silver contract, also known as MCX silver mini, is a derivative contract that allows traders to trade based on future prices of the physical commodity supertrend indicator– silver. One gold futures contract, for instance, is equal to 100 troy ounces of silver. If you are not interested in investing in 100 troy ounces of physical silver but want exposure to the price performance of silver, it makes a lot sense to trade a futures contract.

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