Trade in MCX Natural Gas Mini Futures Contracts From March 14, 2023

MCX has launched natural gas mini futures contracts. These will be available for trading from March 14, 2023. Initially, contracts expiring in April and May will be available for trading. Going forward, contracts for the subsequent months with 3 months expiry will become available on the exchange.  

The minis will be available for 250 MMBtu trading units, while the maximum order size is fixed at 60,000 MMBtu. The market will calculate the position limit for the minis based on all the open positions of all variants of Natural Gas futures contracts available for trading. 

Recently, MCX has introduced Crude Oil Minis and Metal Minis for Aluminium, Lead, and Zinc.  

Calendar of the Natural Gas Futures Contracts

MCX has announced the launch and expiry dates of Natural Gas Minis, which will be available for trading from March 14, 2023. 

These contracts are introduced to encourage retail participation and will empower market participants to manage their price risks more efficiently. 

Key details relevant to the Natural Gas Mini Futures Contracts 

Benefits of trading in MCX Futures Mini Contracts 

• The Natural Gas mini futures contracts will target smaller traders and encourage them to participate more. 
• You can place lower bets with Natural Gas minis. It will reduce your market exposure.
• These will increase the number of market participants. You can use these contracts to diversify your portfolio in commodity trading.
• These contracts will improve market liquidity. As a result, you may see increased investment in the product. 

The newly introduced MCX Natural Gas mini contracts will be cash settled on the New York Mercantile Exchange.

Final words 

The existing standard Natural Gas contract size is 1250 MMBtu, which is quite large. Natural gas is one of the highly volatile commodities, and its price moving 10% up or down on a single day is quite possible. The reduced trading units introduced with the Natural Gas Mini contracts will allow traders to manage and reduce their risks on the commodity.

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