ZINC

Lot size: 1 standard contract represents 5 metric tonnes of zinc metal. This equals 5,000 kilograms per single lot on MCX.

Tick size: Minimum price movement is 5 paise per kilogram on MCX. Each tick changes the contract value by ₹250.

Quotation: Prices are quoted ex-warehouse in the Thane district in Maharashtra state. The quote excludes GST but includes other applicable duties.

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

Trading hours: Trading runs Monday through Friday from 9:00 AM. The session normally closes at 11:30 PM. During US daylight saving time, closing extends to 11:55 PM.

Daily Price Limit (DPL): The initial circuit breaker sits at 4% on MCX. If breached, the limit widens to 6% without pause. If 6% is breached, a 15-minute pause follows immediately. After the pause, the limit expands to 9% total.

Initial margin: The initial margin is 10% or SPAN-based, whichever is higher. An extreme loss margin of 1% applies on top.

Open Interest (OI): Open Interest counts the total outstanding contracts across all market participants. Rising OI with rising price indicates fresh long positions. Rising OI with falling price indicates fresh shorting activity.

Position limits: Individual clients can hold 7,000 MT or 5% OI. Members can hold 70,000 MT or 20% OI.

Maximum order size: The maximum order size is 100 metric tonnes per order. This equals 20 standard lots in a single transaction.

Delivery: Compulsory delivery at expiry uses 5 metric tonnes as standard units. Tolerance is +/- 10% on the delivery quantity. The primary delivery centre is the Thane district in Maharashtra. Kolkata district in West Bengal serves as an additional centre.

Quality specifications: Deliverable zinc must carry a minimum purity of 99.995%. Only LME-approved producer brands are accepted for physical delivery.

Macro participation without physical exposure: The price of zinc is driven by declines in the price of the currency, the mining sector, and the steel industry. Futures enable you to get to these drivers without having to deal with any actual ingots.

Leverage through margin: Only a margin payment is required to open trading positions. This will result in reduced money invested for every single trade they make.

Hedging for commercial users: There is always price risk for the galvaniser, steel manufacturers and zinc purchasers. With the help of the futures, they can hedge input costs or selling prices at MCX.

Transparent, regulated infrastructure: MCX operates under SEBI regulation with full public price display. Each day, settlement operates according to rules and in the normal way of clearing house operations.

Delivery infrastructure: Tight convergence between futures and spot prices is attained under compulsory delivery. Sellers supply zinc that is 99.995% pure. The LME-approved brands are supplied accompanied by satisfactory quality certification for the buyers.

Directional long or short: Buy futures if you expect zinc prices to rise higher. Sell futures if you expect zinc prices to fall further. Position size relative to your available margin is always critical.

Month-to-month spread: Buy one expiry month while simultaneously selling another contract month. Profit depends on the spread between months, not the absolute price.

Producer or consumer hedge: A company buying physical zinc can sell futures to secure prices. If spot rises, the physical gain offsets the futures contract loss.

MCX-LME basis play: Speculate on the difference between MCX and LME after currency adjustment. When the basis moves beyond historical bounds, reversion trades may appear.

Watch LME zinc alongside MCX: Domestic ZINC futures price does not move independently of global cues. LME direction sets the broader tone for the MCX ZINC futures price.

Observe the trend of the rupee versus the dollar: Even when LME does not move, MCX prices can shift. A depreciating rupee supports domestic prices entirely on its own.

Monitor LME warehouse stock reports: Longer periods of inventory declines typically support global zinc prices. Quick inventory builds warrant caution before adding fresh long positions.

Plan for daily MTM settlements and margin calls: MCX marks positions to market every evening without exception. Zinc can gap on supply news or sudden LME shifts. Sizing trades only around the minimum margin requirement may not leave enough buffer for volatility.

Use multiple time frame charts: A trend visible on the daily chart may differ from the hourly view. Dhan's custom and India timeframes let you align both before placing a trade.

Use the Dhan Trade Plan for position sizing: Trade Plan is a built-in position-sizing tool available 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 consistently over time.