The Silver Micro futures contract on the MCX, with its 1 kg lot size, offers a cost-effective gateway into the silver market. This lower entry point, compared to the 5kg Silver Mini and 30kg standard Silver contract, provides greater accessibility for those looking to speculate on silver’s price movements with less capital at stake.
- Silver Micro
- Contract Specification – Silver Micro
- How to invest in Mcx Silver Micro?
- Quick Summary
Silver Micro in MCX is the smallest silver contract with a lot size of 1 kg, enabling traders and investors to participate in the silver market with less capital. Traders can leverage this small contract size to hedge against price fluctuations or to speculate on silver prices.
Silver Micro, Silver Mini, and Silver are futures contracts traded on the Multi Commodity Exchange (MCX) of India, each with different lot sizes suitable for a range of investors:
- Silver Micro: Each contract represents 1 kilogram of silver. This is the smallest silver futures contract and is ideal for traders with limited capital or those wanting to start small.
- Silver Mini: Each Silver Mini contract represents 5 kilograms of silver. It’s a middle ground for investors who find the Silver Micro too small and the standard Silver contract too large.
- Silver: This is the largest of the silver futures contracts, with each contract representing 30 kilograms of silver. It is typically chosen by large traders or institutional investors.
Like other futures contracts, it has an expiry date, and various factors, including global silver prices, currency exchange rates, and economic events, influence the price.
Contract Specification – Silver Micro
The Silver Micro futures contract, symbolized as SILVERMIC, trades on the MCX from Monday to Friday between 9:00 AM – 11:30 PM/11:55 PM. The contract size is just 1 kg of 999 pure silver, making it an affordable choice for investors. Its maximum order size is also set at 1 Kg, with a minimal price fluctuation or tick size of ₹1.
|Contract Start Day||6th day of the contract launch month. If the 6th day is a holiday, then the following business day|
|Expiry Date||5th of the contract expiry month. If the 5th is a holiday, then the previous business day|
|Trading Session||Monday to Friday: 9:00 AM – 11:30 PM/11:55 PM (Daylight saving)|
|Contract Size||1 kg|
|Purity of Silver||999 fineness|
|Price Quote||Per kg|
|Maximum Order Size||1 Kg|
|Base Value||1 kg of Silver|
|Delivery Unit||1 kg (Minimum)|
|Delivery Centre||At all Delivery Centers of MCX|
How to invest in Mcx Silver Micro?
Investing in MCX Silver Micro follows the same process as other futures contracts:
- Open a trading account with a broker like Alice Blue who provides access to MCX.
- Complete the necessary KYC requirements.
- Deposit the necessary margin amount in your trading account.
- Use the trading platform your broker provides to buy or sell Silver Micro contracts.
- By investing with 15 rupees brokerage plan of AliceBlue, one can save more than 13,200 rs saving in a year.
Investors should remember that futures trading involves risk and should only be done after adequate research and consideration.
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:
Silver Micro – Quick Summary
- MCX Silver Micro is a futures contract offered by the Multi Commodity Exchange of India with silver as the underlying asset. It allows for smaller investments due to its micro size of 1 KG.
- Contract specifications include the trading symbol, lot size, tick size, quality, delivery unit, and delivery center.
- Investing in MCX Silver Micro requires a trading account, necessary KYC requirements, a sufficient margin, and a brokerage platform for trading.
- Invest in silver micro with Alice blue. Alice Blue’s 15 Rs brokerage plan can save you more than to ₹ 1100 in brokerage every month. We also don’t levy clearing charges.
Mcx Silver Micro – FAQs
1. What is Silver Micro?
Silver Micro is a type of futures contract traded on MCX, representing 1 KG of silver, making it a more affordable option for retail investors. In comparison, the standard Silver futures contract represents 30 KG of silver, thus requiring a significantly larger investment.
2. What is silver micro lot size?
|Lot Size||1 KG|
|Notable Feature||The small size of the Silver Micro contract makes it more accessible for individual investors.|
|Market||Silver futures market on the MCX|
3. What is the margin for silver micro?
|Margin Requirement||Varies depending on the broker and market volatility. Usually ranges from 5-10% of the contract value|
|Notable Feature||Margin requirements can change. Always check the current margin requirements with your broker.|
4. What are the best indicators for silver micro trading?
There’s no definitive list of the ‘best’ indicators as it largely depends on an individual trader’s strategy and risk tolerance. However, commonly used indicators for trading Silver Micro, like any other commodity, include Moving Averages, Relative Strength Index (RSI), MACD, and Bollinger Bands. Combining these indicators with sound technical and fundamental analysis can enhance trading outcomes.