MCX Aluminium Mini is a tailor-made futures contract by India’s Multi Commodity Exchange (MCX). Offering investors the flexibility to trade in smaller lot sizes of 1 metric ton (MT), it’s a scaled-down version of the standard Aluminium futures contract whose lot size is 5 MT
By providing a smaller lot size, MCX hopes to draw a wider variety of market participants, such as independent retail traders and small investors, who can now trade aluminum futures with a lower outlay of cash. This enables them to more effectively manage their risk while diversifying their portfolios and taking advantage of price changes in the aluminum market.
Contents:
- Aluminium Mini
- What is the difference between Aluminium and Aluminium Mini?
- Contract Specifications – Mcx Aluminium Mini
- How to invest in Aluminium Mini?
- Factors That Influence The Aluminium Price
- Mcx Aluminium Mini – Quick Summary
- Aluminium Mini – FAQs
Aluminium Mini
Aluminium Mini, denoted as ALUMINI in MCX, has a lot size of 1 metric tonne (MT) compared to the standard Aluminium contract of 5 MT. This offers a lower margin requirement, making it more accessible to individual and retail traders.
What is the difference between Aluminium and Aluminium Mini?
The primary difference between Aluminium and Aluminium Mini lies in their lot sizes. The lot size for Aluminium futures contracts is 5 metric tons, whereas for Aluminium Mini futures contracts, it is reduced to 1 metric ton.
| Parameters | MCX Aluminium | MCX Aluminium Mini |
| Lot Size | 5 MT | 1 MT |
| Daily Price Limits | Base price +/− 3% | Base price +/− 3% |
| Initial Margin | Higher due to the larger lot size | Lower due to smaller lot size |
| Eligibility | Suitable for larger investors or companies | More accessible for retail traders and small businesses |
| Volatility | Higher due to larger contract size | Less due to the smaller contract size |
| Investment Outlay | Higher due to larger contract size | Lower, offering accessibility to a wider audience |
| Tick Size | ₹ 5 | ₹ 1 |
Contract Specifications – MCX Aluminium Mini
Trading under the symbol ALUMINI on the Multi Commodity Exchange, the Aluminium Mini futures contract allows investors to participate in commodity trading with a manageable lot size of 1 Metric Tonne (MT). Trading sessions occur from Monday to Friday, between 9:00 AM – 11:30 PM/11:55 PM. With a tick size of ₹1 and a maximum order size of 10 MT, this contract provides flexibility for varying investment scales.
| Specification | Details |
| Commodity | Aluminium Mini |
| Trading Symbol | ALUMINI |
| Contract Start Day | 1st day of the contract launch month |
| Contract Expiry | Last day of the contract expiry month |
| Trading Session | Monday to Friday: 9:00 AM – 11:30 PM/11:55 PM (Daylight saving) |
| Lot Size | 1 Metric Tonne (MT) |
| Price Quote | Prices are quoted in ₹ per MT |
| Maximum Order Size | 10 MT |
| Tick Size | ₹ 1 |
| Delivery Unit | 1 MT with a tolerance limit of +/- 2% |
| Delivery Centre | At all Delivery Centers of MCX |
| Initial Margin | As specified by MCX. This margin varies based on the market volatility and is updated frequently |
| Delivery Period Margin | Starts from the beginning of the month of contract expiry |
How to invest in Aluminium Mini?
Investing in MCX Aluminium Mini can be accomplished in the following steps:
- Open a Commodity Trading Account: First, you must open a commodity trading account with a broker registered with MCX. Provide necessary identification documents and complete the Know-Your-Customer (KYC) process.
- Learn About the Market: Equip yourself with knowledge about the aluminium market, including factors influencing prices, such as supply-demand dynamics, economic indicators, and geopolitical events.
- Market Analysis: Analyze the market using technical and fundamental analysis to make informed decisions. Historical data, market trends, and future predictions play a crucial role.
- Decide Your Strategy: Based on your risk appetite, decide whether to go long (buy) or short (sell) on the Aluminium Mini contract.
- Place Your Order: Use the trading platform your broker provides to place your buy or sell order. Monitor your investment regularly.
Factors That Influence The Aluminium Price
The primary factor influencing aluminium price is the global supply-demand balance. Other key factors are:
- Economic Growth: As aluminium is widely used in various industries, including transportation, construction, and packaging, economic growth can significantly affect its demand.
- Energy Prices: Aluminium production is energy-intensive. Hence, changes in energy prices can impact aluminium prices.
- Geopolitical Events: Political instability or regulations in major aluminium-producing countries can affect aluminium supply, influencing prices.
- Exchange Rates: As aluminium is primarily traded in dollars, fluctuations in the dollar value can affect aluminium prices.
- Inventory Levels: High inventory levels typically indicate weak demand or overproduction, which can lower prices, while low inventory levels can indicate strong demand or supply disruptions, potentially driving prices higher.
We hope that you are clear about the topic. But there is more to learn and explore when it comes to the stock market, commodity and hence we bring you the important topics and areas that you should know:
| Gold Mini |
| Gold Guinea |
| Silver Micro |
| Gold Petal |
| Zinc Mini |
| Crude Oil Mini |
| Silver Mini |
| Natural Gas Mini |
| MCX Meaning |
MCX Aluminium Mini – Quick Summary
- MCX Aluminium Mini is a smaller, more accessible version of the standard Aluminium futures contract MCX offers.
- Aluminium Mini has a lot size of 1 MT, making it more suited to retail traders and small investors.
- Aluminium and Aluminium Mini contracts on the MCX differ in lot size. The standard Aluminium contract represents 5 metric tons, while the Aluminium Mini contract is smaller, representing just 1 metric ton, making it more accessible to individual investors or those with limited capital.
- The key contract specifications for Aluminium Mini include a lot size of 1 MT, a tick size of ₹ 1, and standard contract expiry on the last day of the month.
- Investing in Aluminium Mini involves opening a commodity trading account, learning about the market, deciding on a strategy, and placing your order.
- Aluminium prices are influenced by several factors, including economic growth, energy prices, geopolitical events, exchange rates, and inventory levels.
- Invest in aluminium mini with Alice blue. With our 15 Rs brokerage plan, you can save more than ₹ 1100 in brokerage every month. We also don’t levy clearing charges.
Aluminium Mini – FAQs
1. What is an Aluminum Mini?
An Aluminum Mini is a futures contract offered on the MCX in India. It represents 1 metric tonne of aluminium, making it a smaller, more accessible version of the standard Aluminium contract compared to standard Aluminium contract represents 5 metric tons.
2. What is the lot size for MCX aluminium Mini?
The lot size for MCX Aluminium Mini is 1 metric tonne, while the standard Aluminium contract on MCX has a larger lot size of 5 metric tonnes.
3. What is the price of 1 kg of Aluminium?
The price of aluminium fluctuates based on market conditions. For current rates, one must refer to the MCX’s official website or other reliable financial news sources.
4. Is it good to invest in Aluminium Mini?
Investing in Aluminium Mini can be a good option for those who wish to gain exposure to the aluminium market without a large initial investment. However, as with any investment, potential returns come with risk, so thorough research and understanding are essential.
5. How can I trade in Aluminium Mini?
Trading in Aluminium Mini requires a commodity trading account with a registered broker like Alice Blue. After understanding market dynamics and deciding on your investment strategy, you can place buy or sell orders using your broker’s trading platform.
