CRUDEOIL

Lot size: One contract represents 100 barrels.

Tick size: Minimum price movement is ₹1 per barrel.

Expiry: Contracts expire on dates specified in the MCX Contract Launch Calendar. For example, the January 2026 contract expires on January 16, 2026. New contracts launch approximately six months forward.

Trading hours: They are traded every Monday to Friday, 9:00 AM to 11:30 PM. During US daylight saving time, trading extends to 11:55 PM.

Daily Price Limit (DPL): The initial slab is 4%. If breached, relaxation is allowed up to 6% without any cooling off period. If the 6% limit is breached, trading enters a 15-minute cooling off period, after which the daily price limit is relaxed up to 9%. In case the price movement in international markets is more than 9%, the same may be further relaxed in steps of 3%.

Initial margin: Minimum 10% or SPAN-based, whichever is higher. Extreme loss margin is 1%.

Open Interest (OI): Total outstanding contracts. Rising OI with rising price indicates fresh longs. Rising OI with falling price indicates fresh shorts.

Position limits: Individual clients can hold up to 4,80,000 barrels or 5% of market-wide OI, whichever is higher, for all Crude Oil contracts combined together. Members can hold 48,00,000 barrels or 20% of market-wide OI, whichever is higher, for all Crude Oil contracts combined together.

Maximum order size: 10,000 barrels per order.

Macro participation without physical exposure: Macro drivers such as OPEC policy, US shale output, currency movements, and geopolitical events all impact crude oil prices. Futures provide direct participation in these price effects without having to source, store, or handle physical oil.

Leverage through margin: Futures only require a margin payment. This means a lower amount of money can be committed to the market. This also means there is the potential for losses greater than the margin if positions are not managed appropriately.

Hedging utility for commercial participants: Companies that have crude oil price risk exposure, such as refineries, airlines, and chemical manufacturers, can use MCX futures to manage their price risk. The design of the contract facilitates this operational hedging.

Transparent, regulated infrastructure: MCX is a SEBI-regulated exchange. Prices are publicly visible. Settlement is done according to the rules. The rules minimise counterparty risks and provide execution standards.

Directional long or short: Long (buy) or short (sell) the futures in anticipation of a price increase or a price fall. The simplest approach and the one most retail participants begin with. Risk management in terms of position size relative to margin is critical.

Month-to-month spread: Buying one expiry month while simultaneously selling another. Profit or loss is based on the movement of the difference between the two months. Spreads generally require a lower margin and carry lower volatility than outright positions.

Event-driven trade: Taking a position ahead of known events such as OPEC meetings, EIA inventory releases, or geopolitical developments. These trades require precise timing and awareness of implied volatility expansion before the event and potential compression after.

Arbitrage between CRUDEOIL and CRUDEOILM: When the big contract and the mini contract trade at different prices, a risk-free arbitrage opportunity may exist. Buy the cheaper contract and sell the expensive one, ensuring contract values are matched appropriately.

Follow the schedule of OPEC+ meetings: Production decisions made in advance. Markets begin to price expected changes, well before the official announcement. Keep track of comments to delegates and draft leaks for policy.

Check the EIA inventory every Wednesday: The U.S. crude inventory report is issued on a regular weekly basis. A build is an event that surprises to the upside and tends to be priced down on WTI. A draw has a positive influence on prices.

Consider the movement of USD/INR when making the decision: MCX prices are directly impacted by rupee dollar rate, which is not related to the movement of WTI. If there are no changes in international prices, a depreciated rupee can maintain the domestic prices.

Watch geopolitical risk across producing regions: Supply threats in West Asia, West Africa, or Latin America can spike crude prices within hours. Track pipeline outages, export terminal delays, and OPEC nation policy shifts. Do not focus on a single chokepoint.

Account for daily MTM and margin calls: MCX settles profits and losses every evening. Crude oil can gap overnight on OPEC news or geopolitical events. If the market opens against you, you face a margin call before you can react. Keep extra funds above the minimum margin. Size your position so that a single adverse gap does not force an early exit. Do not calculate position size using only the exchange minimum.

Analyse several timeframes on Dhan Charts: The daily CRUDEOIL trend may differ from the hourly view. Dhan's Custom Timeframes let you set exact intervals beyond standard presets. India Timeframes align chart data with Indian market session hours. Align both before you commit capital.

Avoid overleveraging: A large position with a small margin is not a good idea. Keep single-trade risk within a fixed percentage of capital. Dhan Trade Plan inputs capital allocation, risk, and reward. It outputs the exact quantity, stop-loss, and target. Use it before you trade.