MCX 100G Silver Futures Contract: The landscape of commodity trading in India is gearing up for a massive shift as the Multi Commodity Exchange (MCX) prepares to cater directly to pocket-friendly investors. In a major move, MCX will officially launch a 100-gram silver futures contract on June 1, 2026 (Monday). Dubbed SILVER100, this mini-contract breaks down the entry barrier for retail participants, offering a highly liquid, lower-margin alternative to the massive, standard silver contracts that usually dominate the exchange.
Whether you are a seasonal trader or a retail investor looking to hedge your portfolio, here is everything you want to know about this new product launch.
Contract Overview, Timeline, and Specifications
The newly introduced contract is designed to bring structured transparency to smaller-scale commodity investments.
- Symbol & Identification: The contract will appear on trading screens as SILVER100. Its specific monthly contracts will follow the format SILVER100MMYY (e.g., the launch contract will be labeled SILVER100JUN26).
- Available Horizons: Upon its June 1 rollout, trading will be available across distinct monthly cycles spanning from June 2026 through November 2026.
- Trading Calendar: The contract follows a standard Monday-to-Friday schedule. Daily trading hours run from 09:00 AM to 11:30 PM / 11:55 PM (adjusting periodically in accordance with international Daylight Saving Time shifts).
- Launch & Expiry Logic: The contract goes live on the first working day of the launch month and expires on the very last calendar day of the designated expiry month.
Core Trading Mechanics: Units, Value, and Margins
To ensure seamless execution, MCX has established a clear transactional architecture for the 100-gram units:
- Trading & Delivery Unit: 1 Lot = 100 grams of silver.
- Price Base & Quotation: While you trade a 100g lot, the screen quotation reflects the value of 10 grams of silver, linked to the Ex-Ahmedabad basis. This price includes import and customs duties but excludes local taxes like GST, Cess, or Octroi.
- Tick Size: The minimum price movement (tick size) is Rs 1 per 10 grams.
- Maximum Order Cap: Traders can place a single maximum order of up to 600 kilograms.
The Margin Requirements:
To initiate a position, traders must maintain specific capital requirements in their accounts:
- Initial Margin: A minimum of 10% or as calculated by SPAN software (whichever is higher).
- Extreme Loss Margin (ELM): Safetied at a fixed minimum of 1%.
- Special/Additional Margins: MCX retains the right to levy extra margins on buyers, sellers, or both during patches of sudden, extreme market volatility.
Understanding the Daily Price Limits (Circuit Filters)
To protect market participants against sudden flash crashes or speculative spikes, MCX has implemented a dynamic, multi-tier circuit breaker system:
- Step 1: The initial circuit limit is set at 4%. If breached, it automatically expands to 6% without halting trade.
- Step 2: If prices touch the 6% mark, a 15-minute cooling-off period is triggered. Post-break, the limit widens to 9%.
- International Adjustments: In case of unprecedented volatility in overseas markets, the limit can be expanded further past 9% in successive steps of 3%.
Quality Standards and Delivery Rules (MANDATORY)
Unlike cash-settled derivatives, the SILVER100 contract operates on a Compulsory Physical Delivery mechanism. Once the contract expires, positions cannot be cash-settled; physical bullion must change hands.
- Purity & Grade: Delivered silver must strictly meet Grade 999 and Fineness 999 standards (as per IS 2112:1981). There is zero negative tolerance; anything below 999 purity will face immediate rejection.
- Approved Suppliers: Silver bars must be serially numbered and sourced exclusively from London Bullion Market Association (LBMA) approved refiners or MCX-accredited domestic suppliers.
- Staggered Delivery Period: The final 3 trading days of an expiring month constitute the staggered delivery window. Traders holding open positions during this time can explicitly submit their intentions to give or receive physical metal.
- Allocation Method: Delivery matches are made via a automated Random Method (lottery system) to give equal opportunity to all sizes of buyers, though preference may be granted to those who proactively opted for physical pickup.
- Financial Pay-in & Defaults: Funds must be cleared on a T+1 working day basis. Buyers cannot refuse an allocation once assigned. If a seller fails to deliver physical silver on time, severe Seller Default Penalties are strictly enforced by the clearing corporation.
FAQ’s
1. What is the MCX SILVER100 contract?
SILVER100 is a new 100-gram silver futures contract launched by MCX to provide retail investors and small traders with an affordable way to participate in silver trading with lower margin requirements.
2. When will the SILVER100 contract be launched?
The MCX SILVER100 contract will be officially launched on June 1, 2026, and will initially include monthly contracts from June 2026 to November 2026.
3. What is the trading unit of this new silver contract?
The trading unit for SILVER100 is 100 grams per lot. Although trading is based on 100 grams, prices are quoted per 10 grams of silver.
4. Does SILVER100 involve physical delivery?
Yes, SILVER100 is a compulsory physical delivery contract. At expiry, traders must take or give actual silver meeting 999 purity standards as per MCX rules.
5. What are the key benefits of this new MCX silver contract?
The main benefits include lower investment size, improved liquidity, retail-friendly margins, structured risk management, and easier access to silver trading for small investors.
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