CRUDEOILM

Lot size: One contract represents 10 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: Available to trade from Monday to Friday, between 9:00 AM and 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 as well, the market undergoes a 15-minute cooling-off period. After that, the daily price limit is extended 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.

Lower capital requirement than the standard contract.: The 10 barrel lot size also translates to a lower margin per position. This gives retail traders an opportunity to trade crude oil price action without the risk of a 100-barrel contract.

Identical price discovery to the large contract.: CRUDEOILM is following the same underlying WTI benchmark and USD/INR rate as well. The mini contract has the same market access and price information.

Transparent, regulated infrastructure: MCX is a regulated exchange by SEBI. The prices are displayed transparently. There are rules for making settlements. The clearing corporation helps to reduce counterparty risk.

Access without manual operations: Retail traders can trade on crude oil price action, without being involved in sourcing, storage or transportation of physical barrels. There is no delivery commitment at contract expiry, as the contract is cash-settled.

Directional long or short: Long (buy) or short (sell) the futures in anticipation of a price increase or a price fall. The simplest approach. 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.

Arbitrage between CRUDEOILM and CRUDEOIL: When the mini and standard contracts 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.

Track OPEC+ meeting schedules: Production decisions are announced in advance. Markets start pricing expected shifts well before any official statement. Monitor delegate comments and draft policy leaks.

Watch the EIA inventory data every Wednesday: US crude inventory reports are released on a fixed weekly schedule. A build surprises to the upside and tends to drive WTI down. A draw tends to support prices.

Factor in USD/INR movement: The rupee-dollar rate affects MCX prices independently of WTI movement. A weaker rupee supports domestic prices even if global benchmarks are flat.

Monitor Strait of Hormuz developments: A good share of global oil trade passes through this chokepoint. Any credible disruption threat moves prices within hours.

Respect the margin cycle: MCX mark-to-market happens daily. Energy commodities can gap on geopolitical news. Position sizing that accounts for adverse moves is more robust than margin-minimum sizing.

Check multiple chart timeframes: A trend visible on the daily chart may not match the hourly. Align both before entering a position.

Avoid overleveraging: The ability to take a large position with a small margin is not a reason to do so. Keep single-trade risk within a defined percentage of total capital.