SILVERMIC

Lot size: One standard contract represents 1 kilogram.

Tick size: Minimum price movement is Re. 1 per kg. Each tick changes the contract value by ₹1.

Quotation: Prices are quoted in rupees per kilogram.

Expiry: Contracts expire on the last calendar day of the contract month. If that day is a holiday, the preceding working day. New contracts launch on the 1st day of the launch month.

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 10% 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 100 MT or 5% of market-wide OI, whichever is higher, for all Silver contracts combined. Members can hold 1,000 MT or 20% of market-wide OI.

Maximum order size: 600 kg per order.

Delivery: Compulsory delivery at expiry. The delivery centre is in Ahmedabad at the designated clearing house facilities. The quality standard is 999 fineness. LBMA-approved suppliers are mandatory.

Low capital outlay requirement: The 1 kg lot size means the lowest margin per position among silver contracts. Retail traders and small jewellers get market access with minimal capital commitment.

Dual-demand exposure: Silver can function as an investment asset and at the same time be an industrial raw material, presenting distinct factors of price drivers. SILVERMIC futures allow you to take advantage of both demand sides without buying or selling physical bars.

Leverage through margin: Only a margin payment is required for futures. This results in a reduced investment in the market. It also represents potential losses exceeding the margin if not managed properly.

Hedging for small-scale users: Artisans, small jewellers, and retail investors with silver price exposure can use MCX futures to manage cost risk. The compulsory delivery design supports this operational hedging.

Transparent, regulated infrastructure: The MCX is a regulated exchange by SEBI. There is a public display of prices. There is a set of rules that governs the settlement. The benefit of the clearing company is its ability to help eliminate counterparty risk.

Physical delivery option: Compulsory delivery at expiry ensures convergence between futures and spot. Sellers deliver 999 fineness silver in 1-kg bars. Buyers receive LBMA-approved bars with quality certification.

Outright directional position: Buy futures if you expect prices to rise. Sell if you expect a fall. This is the simplest approach. Risk management in terms of position size relative to margin is critical.

Inter-month differential: Buy one expiry month while simultaneously selling another. Profit depends on the movement of the difference between the two months. Spreads generally require a lower margin and carry lower volatility.

Physical holder hedge: A small jeweller holding physical silver can sell futures to secure a selling price. If spot prices rise, the physical gain offsets the futures loss. If they fall, the futures profit offsets the physical loss.

Cross-market reversion: If the MCX price differs considerably from the London price after taking currency and duty costs into consideration, a reversion trade could be considered. This requires knowledge of both markets.

Track US Federal Reserve policy: Rate decisions and forward guidance influence the dollar and, by extension, silver. Monitor FOMC statements, dot plots, and press conferences.

Watch USD/INR alongside the London spot: MCX prices are influenced by the rupee-dollar rate. A weaker rupee supports domestic prices even as London rates remain flat.

Factor in Indian festival demand: The wedding season and year-end buying boost physical demand. This can push MCX premiums above London prices.

Monitor the central bank buying reports: The World Gold Council provides quarterly data on nations accumulating precious metals. Sustained buying establishes long-term price floors.

Use multiple time frame charts: A trend visible on the daily SILVERMIC 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 calculates your exact quantity, stop-loss level, and target price automatically.

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.