LEADMINI

Lot size: One standard contract represents 1 metric tonne. This equals 1,000 kilograms per lot.

Tick size: Minimum price movement is 5 paise per kg. Each tick changes the contract value by ₹50.

Quotation: Prices are quoted ex-warehouse Chennai, excluding GST only.

Expiry: Contracts expire on the last calendar day of the month. If that day is a holiday, the preceding working day applies.

Trading hours: You can trade Monday through Friday between 9:00 AM and 11:30 PM. When the US is on daylight saving time, the market stays open until 11:55 PM.

Daily Price Limit (DPL): The initial circuit breaker sits at 4%. If breached, the limit widens to 6% without a cooling-off period. If 6% is breached, a 15-minute pause follows before expanding to 9%.

Initial margin: Minimum 8% or SPAN-based, whichever is higher. Extreme loss margin applies on top.

Open Interest (OI): Total outstanding contracts across all participants. Rising OI with rising price indicates fresh long positions. Rising OI with falling price indicates fresh shorting.

Position limits: Individual clients can hold up to 3,500 MT or 5% of market-wide OI, whichever is higher, for all Lead contracts combined. Members can hold 35,000 MT or 20% of market-wide OI.

Maximum order size: 100 MT per order.

Delivery unit: 1 MT with a tolerance limit of plus or minus 10%. Quality standard requires 99.98% purity lead ingots.

Improved capital cost compared to regular LEAD.: The 1 MT lot size equates to a smaller margin per position. Retail traders have full market access, along with the same price discovery, but with reduced investment.

Macro participation without physical exposure: LEAD is affected by energy policy and mining regulation, currency movement, and industrial development. You can take advantage of these price effects without physically buying and holding any ingots in futures contracts.

Leverage through margin: The margin is a small percentage of the contract amount that you put down. While it is a great freeing up of the capital, it can also turn into a major exposure to losses when handled incorrectly.

Hedging for commercial users: Battery manufacturers, cable makers, and construction firms face LEAD price risk. MCX futures lock in input costs or selling prices. The compulsory delivery design supports this operational hedging.

Transparent, regulated infrastructure: MCX operates under SEBI supervision. Prices are public. Settlement follows strict rules. Counterparty risk is minimised through the clearing corporation.

Delivery infrastructure: Compulsory delivery at expiry ensures convergence between futures and spot. Sellers deliver lead ingots with 99.98% purity. Buyers receive MCX-approved or LME-approved brands with quality certification.

Directional trade: Buy if you expect lead prices to rise. Sell if you expect them to fall. This is the simplest approach. Position size relative to margin is critical.

Calendar spread: Buy one expiry month. Sell another. Profit depends on the spread between months, not the absolute price. Lower margin. Lower volatility than outright positions.

Hedging: A battery maker with physical lead stock can sell LEADMINI futures to lock prices. If lead falls, the futures profit offsets the physical loss.

Basis trade: Speculate on the gap between Chennai spot and MCX futures. When the basis is wide, it may revert. This requires knowledge of both markets.

Track LME alongside MCX: Domestic LEAD prices do not move in isolation. LME direction sets the broad tone. Variations between MCX and LME adjusted for currency are typically short-lived.

Factor in USD/INR: A depreciating rupee can lift MCX prices even if LME is flat. A strengthening rupee can cap domestic gains when LME rallies. Manage both sides.

Watch inventory data: LME warehouse stock reports arrive regularly. Sustained drawdowns support prices. Rapid inventory builds warrant caution before adding longs.

Account for daily MTM and margin calls: MCX marks positions to market every evening. LEAD can gap on mining news or LME moves. Size your trades to survive margin calls. Do not size based on the minimum margin alone.

Use Custom Timeframes and India Timeframes: A trend visible on the daily LEADMINI futures chart may differ from the hourly view. Dhan's custom and India timeframes let you align both before entering.

Use the Dhan Trade Plan for position sizing: Trade Plan is a built-in tool on Dhan Charts. Input your capital allocation percentage, risk percentage, and reward percentage. It automatically calculates your exact quantity, stop-loss level, and target price.

Square off before expiry if you do not want delivery: Most retail traders do not intend to take or give physical delivery. Exit well before the last trading day to avoid compulsory delivery obligations.

Size positions within capital limits: 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 your total capital. Use the Trade Plan to enforce this discipline.