Hello Commodity Traders,
We have observed the increasing trend of trading commodities among the traders and the same is true for the super traders on Dhan.
While building Dhan, we wanted to make sure that we are able to serve all the traders equally and provide the same incredible experience to all, irrespective of their trading style or favourite segment. For this, we have a single ledger for Equity, FnO, Currency and Commodity segments, one can even get Margin Benefit by pledging their portfolio and trade in commodities using the margin benefits.
We are one of the few brokers in India who provide Options Chain with Greeks for commodities. And very soon we will be offering ready-made options strategies and strategy builder for commodities. To increase awareness and participation of commodity traders, we conduct multiple awareness seminars with experts from the industry and MCX, to enlighten and educate community members on the commodity markets.
MCX has been known for its innovative offerings and they have recently made an exciting announcement. The CRUDE OIL MINI futures, which were previously discontinued in December 2019, are now being re-launched for trading. MCX is the leading exchange with high participation and trading volumes for the regular Crude Oil, and re-introduction of the CRUDE OIL MINI category is expected to provide a significant advantage for Commodity Traders who prefer trading in smaller quantities. From this upcoming Friday, March 3, 2023, traders can start taking advantage of this.
1 lot of CRUDE OIL MINI Future is a 10 barrel contract and the usual CRUDE OIL future is a 100 barrel contract. This implies (and also the name suggests) the margin required to trade in 1 lot of CRUDE OIL MINI will be approximately 1/10th of the margin needed for the regular CRUDE OIL future.
The price pattern and underlying will be all the same. As mentioned in MCX circular no. MCX/TRD/146/2023, the quotation of this contract will be ‘Rs per barrel’ and the settlement price will be based on New York Mercantile Exchange’s Crude Oil front month contract, which is the same as for MCX’s Crude Oil. Also the underlying product is Light Sweet Crude Oil in both the products.
A brief comparison between both Crude Oil products on MCX:
| Parameter | CRUDE OIL | CRUDE OIL MINI |
|---|---|---|
| Symbol | CRUDEOIL | CRUDEOILM |
| Segments | Futures & Options | Futures |
| Trading Unit | 100 barrels | 10 barrel |
| 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 |
As usual, all of us at Dhan will ensure we continue to bring incredible trading experience for all commodities traded on MCX, including the newest Crude Oil Mini.
Let us know in the thread below, will you be trading in this new product?
Happy Trading!
