Crude Oil Mini

Crude Oil Mini

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.

Contents:

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. 

ParametersCrude Oil FuturesCrude Oil Mini Futures
Lot SizeTypically 100 barrelsTypically 10 barrels
Contract Size100 barrels of physical crude oil10 barrels of physical crude oil
Suitable forLarge traders, institutionsSmall traders, individual investors
Capital RequirementHigherLower
Risk ExposureHigherLower

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.

SpecificationDetails
CommodityCrude Oil Mini
Trading SymbolCRUDEOILM
Contract Start Day1st day of the contract launch month
Contract ExpiryLast day of the contract expiry month
Trading SessionMonday to Friday: 9:00 AM – 11:30 PM/11:55 PM (Daylight saving)
Lot Size10 Barrels
Price QuotePrices are quoted in ₹ per Barrel
Maximum Order Size10,000 Barrels
Tick Size₹ 1
Delivery Unit10 Barrels with a tolerance limit of +/- 2%
Delivery CentreAt all Delivery Centers of MCX
Initial MarginAs specified by MCX. This margin varies based on the market volatility and is updated frequently
Delivery Period MarginStarts 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:

  1. Open a commodity trading account with a registered broker like Alice Blue.
  2. Complete the KYC requirements.
  3. Deposit the required margin amount in your trading account.
  4. Use the trading platform provided by the broker to place your buy/sell orders for Crude Oil Mini contracts.
  5. 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:

Gold Mini
Gold Guinea
Silver Micro
Gold Petal
Zinc Mini
Aluminium Mini
Silver Mini
Natural Gas Mini