NSE has announced changes to the margin framework for the Commodity Derivatives Segment, which will come into effect from April 1, 2025. These revisions impact Initial Margin (IM), Short Option Minimum Margin (SOMM), Margin Period of Risk (MPOR), and Volatility Scan Range (VSR) across various commodities.
Key Changes in Margin Requirements
- Gold & Lead (Low Volatility): IM remains at 6%
- Copper (Medium Volatility): IM at 8%
- Silver, Natural Gas, Crude Oil, Aluminium, Nickel, Zinc (High Volatility): IM raised to 10%
For Crude Oil & Natural Gas, specific minimum margin percentages remain unchanged at:
- Crude Oil: 33% IM, SOMM & VSR
- Natural Gas: 13% IM & SOMM, 6% VSR
Impact on traders
- Increased margin requirements could impact leverage and position sizing.
- Higher risk categories like Crude Oil and Natural Gas will continue to see elevated margin requirements.
- Traders dealing in high-volatility commodities should prepare for these revised margins from April 1.
This update aligns with SEBI’s broader framework to manage risk in the derivatives market. Stay informed and plan your trades accordingly.
For detailed information, refer to the official NSE circular: https://nsearchives.nseindia.com/content/circulars/COM66987.pdf