The Multi Commodity Exchange of India (MCX), the country’s largest commodity derivatives bourse, on Monday launched the ‘Silver 100’ futures contract, a new 100-gram silver futures product aimed at expanding participation in silver trading by retail investors and small businesses.
The Silver 100 futures contracts commenced trading on June 1, 2026, with expiry contracts available for June, July, August, September, October and November 2026, according to an MCX circular.
The launch marks an expansion of MCX’s silver derivatives portfolio, which currently includes silver futures contracts of 30 kg, 5 kg and 1 kg, alongside silver options contracts in 5 kg and 30 kg monthly tenures.
“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 & CEO, MCX.
The contract will also help retail participants to invest in silver in smaller quantities over time, while trading through a secure regulated exchange framework, Rai added.
Key features of Silver 100 futures contracts
Contract Specifications: The Silver 100 contract will have a trading unit of 100 grams, with price quotations based on 10 grams and quoted ex-Ahmedabad, inclusive of import duty and customs levies but excluding GST and other local taxes.
Contract Symbol: The contract symbol will be “SILVER100”, and contracts will follow the exchange’s contract launch calendar.
Trading Period: Trading will take place Monday through Friday between 9:00 am and 11:30 pm/11:55 pm, in line with commodity market timings.
Contract Start and End Day: The new MCX Silver 100 futures contract will start on the first day of contract launch month. If the first day is a holiday then it will begin on the following working day. The last trading day will be the last calendar day of the contract expiry month. If the last calendar day is a holiday then the preceding working day will be the last day.
Tick Size: The minimum price movement, or tick size, has been fixed at Re 1 per 10 grams.
Maximum Order Size: The maximum order size allowed is 600 kg.
Daily Price Limits: MCX has prescribed a multi-layered daily price limit structure for the contract. Initially, a 4% price band will apply, which may be relaxed to 6% without a cooling-off period if breached. In case the 6% limit is crossed, trading will pause for 15 minutes before the price band is expanded to 9%. If international silver prices move beyond this threshold, the exchange may further relax limits in increments of 3%.
Initial Margin: The contract will require a minimum initial margin of 10% or SPAN margin, whichever is higher, along with an extreme loss margin of at least 1%.
Delivery, settlement and quality specifications
Silver 100 contracts will be compulsorily settled through physical delivery, with Ahmedabad designated as the delivery centre through MCX Clearing Corporation-accredited facilities.
The delivery unit has been fixed at 100 grams, making it more suitable for jewellers and smaller market participants compared to larger bullion contracts.
MCX said only silver bars with a purity of 999 fineness, compliant with IS 2112:1981 standards, will qualify for delivery. Bars must be serially numbered and sourced from LBMA-approved suppliers or refiners approved by the exchange. Any silver below 999 purity will be rejected.
The staggered delivery tender period will cover the last three trading days, including expiry day, during which buyers and sellers may indicate delivery intentions. On expiry, all open positions will compulsorily move into delivery settlement.
The final settlement price, or Due Date Rate (DDR), will be determined based on Ahmedabad spot prices for 999 purity silver (1 kg), which will be proportionately converted into a 100-gram value.
Clearing and settlement for the contracts will be handled by Multi Commodity Exchange Clearing Corporation Limited (MCXCCL).
