Crude Oil Mini is a futures contract offered on the Multi Commodity Exchange (MCX) of India enables investors to trade in crude oil at a lower contract size, making it affordable for small investors. The contract size of Crude Oil Mini is 10 barrels compared to the regular crude oil futures contract on MCX, which is 100 barrels.
In comparison to the standard Crude Oil futures contract, the Crude Oil Mini futures contract on the Multi Commodity Exchange (MCX) of India typically has a smaller lot size. The Crude Oil Mini lot size on MCX is 10 barrels, whereas the lot size for the standard Crude Oil futures contract is 100 barrels. The exact lot size may vary, but as of my knowledge cutoff in September 2021, it is 10 barrels.
- Mcx Crude Oil Mini
- What is the difference between crude oil and crude oil mini?
- Contract Specifications – Crude Oil Mini
- How to invest in Crude Oil Mini?
- Crude Oil Mini – Quick Summary
- Mcx Crude Oil Mini – FAQs
Mcx Crude Oil Mini
The MCX Crude Oil Mini is a smaller version of the standard Crude Oil futures contract. The contract size of Crude Oil Mini is 10 barrels compared to the regular crude oil futures contract on MCX, which is 100 barrels.
This allows investors with smaller capital to also participate in the commodity markets and diversify their portfolios.
What is the difference between Crude Oil and Crude Oil Mini?
The primary difference between Crude Oil and Crude Oil Mini futures contracts lies in their lot sizes. Crude Oil futures contracts typically have a lot size of 100 barrels, while Crude Oil Mini futures contracts have a smaller lot size of 10 barrels.
|Parameters||Crude Oil Futures||Crude Oil Mini Futures|
|Lot Size||Typically 100 barrels||Typically 10 barrels|
|Contract Size||100 barrels of physical crude oil||10 barrels of physical crude oil|
|Suitable for||Large traders, institutions||Small traders, individual investors|
This table outlines the primary differences between Crude Oil and Crude Oil Mini futures contracts:
- Lot Size: Crude Oil futures contracts typically have a lot size of 100 barrels, while Crude Oil Mini futures contracts have a smaller lot size of 10 barrels.
- Contract Size: The standard Crude Oil futures contract represents 100 barrels of physical crude oil, whereas the Crude Oil Mini contract represents 10 barrels of physical crude oil.
- Suitable for: Crude Oil futures contracts are more commonly traded by large traders and institutions, while Crude Oil Mini futures contracts are designed to be accessible to small traders and individual investors.
- Capital Requirement: Due to the larger lot size, Crude Oil futures contracts generally require higher capital investment compared to Crude Oil Mini contracts.
- Risk Exposure: Trading Crude Oil futures contracts exposes traders to higher risk due to the larger contract size, while trading Crude Oil Mini contracts involves lower risk due to the smaller contract size.
Contract Specifications – Crude Oil Mini
Crude Oil Mini, trading under the symbol CRUDEOILM, is a specific futures contract available on the MCX that trades from Monday to Friday between 9:00 AM – 11:30 PM/11:55 PM. It offers a manageable lot size of 10 barrels, with a maximum order size of 10,000 barrels, and each price movement or tick size is valued at ₹1.
|Commodity||Crude Oil Mini|
|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||10 Barrels|
|Price Quote||Prices are quoted in ₹ per Barrel|
|Maximum Order Size||10,000 Barrels|
|Tick Size||₹ 1|
|Delivery Unit||10 Barrels 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 Crude Oil Mini?
Investing in Crude Oil Mini involves a step-by-step process:
- Open a commodity trading account with a registered broker like Alice Blue.
- Complete the KYC requirements.
- Deposit the required margin amount in your trading account.
- Use the trading platform provided by the broker to place your buy/sell orders for Crude Oil Mini contracts.
- Monitor your investment regularly and make adjustments as needed.
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:
|Natural Gas Mini|
|Shares Below 50|
Crude Oil Mini – Quick Summary
- Crude Oil Mini is a smaller futures contract on MCX that allows investors to trade in crude oil at a reduced contract size.
- It offers a strategic way for retail investors to hedge or speculate on oil price movements.
- The MCX Crude Oil Mini has a contract size of 10 barrels, significantly smaller than the standard contract size of 100 barrels.
- The main difference between Crude Oil and Crude Oil Mini futures contracts is their lot sizes. The lot size for Crude Oil futures contracts is usually 100 barrels, while the lot size for Crude Oil Mini futures contracts is 10 barrels.
- The contract specifications detail the trading terms and conditions, including the contract size, quality specifications, delivery options, and more.
- To invest in Crude Oil Mini, one must open a trading account, complete KYC, deposit the margin, and place buy/sell orders through the broker’s platform.
- Invest in crude oil 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.
Mcx Crude Oil Mini – FAQs
1. What is a Crude Oil Mini?
Crude Oil Mini is a futures contract traded on the Multi Commodity Exchange (MCX) of India. The contract size of crude oil mini is 10 barrels which is smaller than standard Crude Oil futures of 100 barrels, making it more accessible to retail investors.
2. What is the Crude Oil Mini Lot Size?
The lot size of a Crude Oil Mini contract on the MCX is 10 barrels. This smaller lot size offers greater flexibility and affordability for traders, especially those with less capital.
3. Is Crude Oil Mini available in India?
Yes, Crude Oil Mini is available in India and is traded on the Multi Commodity Exchange (MCX).
4. What is the margin of Mini Crude Oil futures?
|Margin for Crude Oil Mini Futures||Usually ranges between 5-10% of the contract value, depending on market volatility.|