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Multi Commodity Exchange (MCX) now introducing the Options on Futures with SILVER MINI (5Kg) from July 19th 2021. Earlier MCX has successful launched of Options on Silver Futures 30 KG Contracts.
Key Features of Silver MINI options :
· Smaller denomination contract
· Bi-monthly options contract
· Highly liquid underlying Silver Mini Futures contracts
· Efficient use of capital
· Portfolio margin benefit
· Margin protection for jewelers and inventory hedging.
Who can Trade in Silver MINI ?
· Retail Traders
· Jewelers
· Hedgers
· Arbitrager
How much margin is required ?
You will have to pay the premium of the option at a particular strike price when you buy ( both call and put) It is very similar to the equity options trading. As in when you sell an equity options as you pay the margins and mark to market ( M2M) you will have to pay in a very similar way the margins and M2M when you sell a contract. All other derivative strategy rules will apply for the commodity options too.
What is the expiry cycle of the options contract ?
All options contracts are bi-monthly contracts.
For details of OPTIONS on Futures with SILVER MINI contract, please click here