In the current market scenario, several Crude Oil and Natural Gas contracts are becoming illiquid and it is becoming increasingly difficult for traders to continue...
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In the current market scenario, several Crude Oil and Natural Gas contracts are becoming illiquid and it is becoming increasingly difficult for traders to continue to trade in these two contracts with their respective brokers. However, we shall continue to enable you to trade in these contracts, even in these times of unusually high volatility in the global crude oil market. Considering this volatility, our clearing member will be levying 100% of exchange margin as additional margin for all open positions in Crude Oil and Natural Gas contracts, as a risk containment measure. This will come into effect from 28/04/2020.
For example,
If the required margin for a Crude Oil contract with May expiry is 100%, total margin levied will be 200%.
Similarly, if the required margin for a Natural Gas contract with May expiry is 50%, total margin levied will be 100%.
Furthermore, on days of expiry of contracts, all open positions in Crude Oil and Natural Gas shall be squared off at any time after 10:30 PM. No fresh positions shall be allowed post square off. This will help you to avoid any negative close out rate (if applicable) on your positions.
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