MCX launches base metal index MCXMETLDEX; know price, features, advantages here!

India’s largest commodities exchange – Multi Commodity Exchange of India Limited (MCX) today launched the first base metal futures index of the country. MCXMETLDEX will track the real time performance of basket of five base metals futures viz. zinc, copper, nickel, lead and aluminium. 

At 3:50 pm, the METLDEX futures were trading at Rs 12045. The intraday high at the time of the filing of the story was Rs 12075. 

Anuj Gupta, Deputy Vice President, Commodity and Currency Research at Angel Broking welcomed the launch saying that this index will bring in more efficiency in tracking the price. This is similar to the bullion index, he added.  

The investors have the advantage of not waiting for the physical delivery and it can be settled on the basis of cash. Investors with lesser margins will also be able to trade in the base metals. The risks management will be on a lower side, he further said. 

Know details here: 

• The expiry date of this contract is 18 November 2020. 
• The contract has a lot size equal to 50 times of underlying MCX iCOMDEX Base Metals Index.  
• The MCXMETLDEX will be traded from Mondays through Fridays between 9 am and 11:30 pm. 
• The tick size (minimum price movement) for the contract is Re 1. The contracts would finally be settled in cash at the end of expiry of each contract. 

The base price limit will be 4 per cent according to an MCX document. Whenever the base daily price limit is breached, the relaxation will be allowed upto 6 per cent without any cooling off period in the trade, the document says. In case the daily price limit of 6 per cent is also breached, then after a cooling off period of 15 minutes, the daily price limit will be relaxed upto 9 per cent.  

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In case price movement in underlying Commodity Index is more than the maximum daily price limit of index futures (currently 9 per cent), the price limit of the index futures may be further relaxed in steps of 3 per cent and informed to the Regulator immediately.

In August, the exchange had launched trading in bullion index futures on MCX iCOMDEX Bullion index or the MCXBULLDEX.