The Multi Commodity Exchange of India (MCX) on Monday launched a new silver futures contract with a trading unit of 100 grams, aiming to make silver derivatives trading more accessible for retail investors, jewellers and small businesses.
The Silver 100 futures contract began trading on June 1, 2026. Contracts are currently available for expiry in June, July, August, September, October and November 2026, according to an exchange circular.
The launch expands MCX’s existing silver derivatives portfolio, which already includes silver futures contracts of 30 kg, 5 kg and 1 kg, along with silver options contracts in 5 kg and 30 kg monthly tenures.
Smaller contract size for retail investors and jewellers
MCX said the new product is designed to lower entry barriers for market participants by allowing exposure to silver through smaller contract sizes.
“The Silver 100 Futures contract helps businesses in India’s silver industry protect themselves against price volatility. Local jewellery businesses can now hedge or take delivery in quantities that are better aligned with their inventory needs. This reduces the need to commit larger amounts of capital or take exposure beyond actual business requirements,” said Praveena Rai, Managing Director and Chief Executive Officer of MCX.
Rai added that the contract would also enable retail investors to gradually build exposure to silver through a regulated exchange platform.
Key features of the Silver 100 contract
The Silver 100 contract has a trading unit of 100 grams, while prices will be quoted per 10 grams on an ex-Ahmedabad basis. Prices will include import duty and customs levies but exclude GST and other local taxes.
The contract will trade under the symbol “SILVER100” and follow MCX’s regular contract launch calendar.
Trading will be available from Monday to Friday between 9:00 am and 11:30 pm or 11:55 pm, in line with commodity market hours.
The contract will start on the first day of the launch month, or the next working day if the first day is a holiday. The last trading day will be the final calendar day of the expiry month, or the preceding working day if that day is a holiday.
MCX has fixed the minimum tick size at Re 1 per 10 grams, while the maximum order size has been capped at 600 kg.
Price limits and margin requirements
The exchange has introduced a multi-layered daily price limit framework for the contract.
Initially, a 4 per cent price band will apply. If breached, the limit can be expanded to 6 per cent without a cooling-off period. A breach of the 6 per cent band will trigger a 15-minute trading halt, after which the limit may be widened to 9 per cent.
MCX said the price bands could be relaxed further in increments of 3 per cent if international silver prices move beyond these thresholds.
The contract will require an initial margin of 10 per cent or the applicable SPAN margin, whichever is higher, along with a minimum extreme loss margin of 1 per cent.
Physical delivery settlement
The Silver 100 futures contract will be compulsorily settled through physical delivery, with Ahmedabad designated as the delivery centre through facilities accredited by MCX Clearing Corporation.
The delivery unit has been fixed at 100 grams, making it more suitable for jewellers and smaller participants than larger bullion contracts.
Only silver bars of 999 fineness conforming to IS 2112:1981 will be eligible for delivery. The bars should be serially numbered and from LBMA approved suppliers or refiners approved by the exchange. Silver less than 999 fineness will not be accepted. The delivery tender period will be the last three trading days including the expiry day. All open positions on expiry shall be compulsorily settled by delivery.
The final settlement price, known as the Due Date Rate (DDR), will be based on Ahmedabad spot prices for 999 purity silver and proportionately adjusted to a 100-gram value.
Clearing and settlement of the contracts will be handled by MCX Clearing Corporation Ltd (MCXCCL).
