MCX additional margins as a cost of carry

Sat, 20 Jun 2026 00:00:00 +0000

MCX additional margins are the extreme loss margin, additional or ad-hoc margin, tender-period and delivery-period margins, and pre-expiry margin that the Multi Commodity Exchange and its clearing corporation levy on a commodity futures position over and above the SPAN initial margin. They are blocked capital, not a charge: the money is returned when the position is closed or settled. What they cost the trader is the use of that capital for the days it stays locked, a cost of carry rather than a fee on the contract note.

Tender Period Margin on WebNotes

MCX additional margins as a cost of carry