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Silver Future Trading: Learn Margin, Leverage, and the Hidden Danger…
A Must-Know Guide for MCX and COMEX Traders.
When you start trading commodities like Silver Futures on MCX or Gold on COMEX, one concept that excites every beginner is leverage.
It gives you the power to control large positions with a relatively small amount of money — but that same power can also destroy your account overnight if you don’t handle it wisely.
Let’s break it down simply: margin, leverage, and the hidden danger behind them.
What Is Margin?
Margin is the amount of money you need to deposit with your broker to open a position.
Think of it as a security deposit — not the full value of your trade, but just a fraction of it.
For example:
- On MCX, to trade Silver Mini (5 kg) at ₹92,000/kg, the total contract value = ₹4,60,000.
- If the margin requirement is 10%, you only need to deposit ₹46,000 to take the trade.
Similarly, on COMEX, if Gold Futures trade at $2,400/oz for a 100 oz contract, the total value = $240,000.
If the margin is 5%, you only need $12,000 to control that $240,000 position.
