The Multi Commodity Exchange has significantly increased margins across key metal contracts, tightening trading conditions after extreme volatility and sharp price swings in recent sessions.
As per the latest MCX contract specifications, the margin requirement for silver (30 kg) has surged to nearly Rs 60 lakh, reflecting a margin rate of over 68% of the contract value. Similarly, gold (1 kg) margins have been raised to around Rs 45 lakh, translating to a margin of nearly 30%. For copper (2,500 kg), the margin requirement now stands at approximately Rs 6 lakh.
The sharp margin hike comes after violent price moves in gold, silver and base metals, with several contracts hitting lower circuits during the Budget Day session. By increasing margins, MCX aims to curb excessive speculation, reduce leverage, and contain systemic risk amid heightened volatility.
Higher margins mean traders must deploy significantly more capital to maintain positions, which often leads to forced position reduction, lower liquidity, and additional pressure on prices in the short term. The move also reflects the exchange’s risk-management response to rapid price corrections and large intraday swings.
Market participants are expected to remain cautious as elevated margins could keep trading volumes subdued and volatility high until price stability returns across metal markets.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market and commodity investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
