Circular no.: MCX/TRD/229/2026 April 24, 2026
Modification in the Contract Specifications (Strike price Interval) in Copper Options ContractsIn terms of the provisions of the Rules, Bye-Laws and Business Rules of the Exchange, the Members of the Exchange are hereby notified as under:
The Exchange has decided to modify the strike price interval in Copper options contracts with effect from May 11, 2026. Details of modification is as below.
Commodity | Existing Strike Price Intervals | Modified Strike Price Intervals | Applicability | Contract Specification |
Copper Options on futures | Rs. 5 | Rs. 10 | Existing and yet to be launched contracts | Annexure |
The contract specification and trading parameters of the contracts, as specified in the Annexure, shall be binding on all the Members of the Exchange and constituents trading through them. Further, for applicable margins, the Members are requested to refer the latest circulars issued by Multi Commodity Exchange Clearing Corporation Limited (MCXCCL) from time to time.
Members are requested to take note of the above changes.
Rohit Lunker
Assistant Vice President- Market Operations
Kindly contact Customer Support on 022- 6649 4000 or send an email at customersupport@mcxindia.com for further clarification.
Corporate office
Multi Commodity Exchange of India Limited
Exchange Square, CTS No. 255, Suren Road, Chakala, Andheri (East), Mumbai - 400 093 Tel.: 022 - 6649 4000 Fax: 022 - 6649 4151 CIN: L51909MH2002PLC135594
https://www.mcxindia.com email: customersupport@mcxindia.com
Annexure Contract Specification for Copper Options contract with Copper (2500 Kilograms) Futures as underlyingSymbol | COPPER |
Underlying | Underlying shall be Copper Futures contract traded on MCX |
Description | Option on Copper Futures |
Option Type | European Call & Put Options |
Contract Listing | Contracts will be available as per the Contract Launch Calendar |
Contract Start Day | 1st day of contract launch month. If 1st day is a holiday then the following business day. |
Expiry Day (Last Trading Day) | Three business days prior to the first business day of Tender Period of the underlying futures contract. |
Trading | |
Trading Period | Mondays through Fridays |
Trading Session | Monday to Friday: 9.00 a.m. to 11.30 / 11.55 p.m.* * based on US daylight saving time period |
Trading Unit | One MCX Copper futures contract |
Underlying Quotation/ Base Value | Rs. Per Kg |
Underlying Price Quote | Ex-Warehouse Thane district (excludes only GST) |
Strikes | 15 In-the-money, 15 Out-of-the-money and 1 Near-the-money. (31 CE and 31 PE). The Exchange, at its discretion, may introduce additional strikes, if required. |
Strike Price Intervals | Rs. 10.00 |
Base price | Base price shall be theoretical price on Black 76 option pricing model on the first day of the contract. On all other days, it shall be previous day's Daily Settlement Price of the contract. |
Tick Size (Minimum Price Movement) | Rs. 0.01 |
Daily Price Limit | The upper and lower price band shall be determined based on statistical method using Black76 option pricing model and relaxed considering the movement in the underlying futures contract. In the event of freezing of price ranges even without a corresponding price relaxation in underlying futures, if deemed necessary, considering the volatility and other factors in the option contract, the Daily Price Limit shall be relaxed by the Exchange. |
Margins | The Initial Margin shall be computed using SPAN (Standard Portfolio Analysis of Risk) software, which is a portfolio based margining system. To begin with, the various risk parameters shall be as under:
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Premium | Premium of buyer shall be blocked upfront on real time basis. |
Margining at client Level | Initial Margins shall be computed at the level of portfolio of individual clients comprising of the positions in futures and options contracts on each commodity |
Real time computation | The margins shall be recomputed using SPAN at Begin of Day, 9.30 am, 11.00 am, 1.00 pm, 3.00 pm, 5.00 pm, 7.00 pm, 8.30 pm, 10.30 pm and End of Day. |
Mark to Market | The option positions shall be marked to market by deducting / adding the current market value of options positions (positive for long options and negative for short options) times the number of long / short options in the portfolio from / to the margin requirement. Mark to Market gains and losses would not be settled in Cash for Options Positions. |
Risks pertaining to option that devolve into futures on expiry |
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Additional and/ or Special Margin | At the discretion of the Exchange when deemed necessary |
Position Limits | |
Maximum Allowable Open Position | Position limits for options would be separate from the position limits applicable on futures contracts. For client level: 14,000 MT or 5% of the market wide open position, whichever is higher - For all Copper Options contracts combined together. |
For a member level: 1,40,000 MT or 20% of the market wide open position, whichever is higher - For all Copper Options contracts combined together. Upon expiry of the options contract, after devolvement of options position into corresponding futures positions, open positions may exceed their permissible position limits applicable for future contracts. Such excess positions shall have to be reduced to the permissible position limits of futures contracts within two trading days. | |
Settlement | |
Settlement of premium/Final Settlement | T+1 day |
Mode of settlement | On expiry of options contract, the open position shall devolve into underlying futures position as follows:-
All such devolved futures positions shall be opened at the strike price of the exercised options |
Exercise Mechanism at expiry | All In the money (ITM)# option contracts shall be exercised automatically, unless 'contrary instruction' has been given by long position holders of such contracts for not doing so. The ITM option contract holders who have not submitted contrary instructions shall receive the difference between the Settlement Price and Strike Price in Cash as per the settlement schedule. In the event contrary instruction are given by ITM option position holders, the positions shall expire worthless. All Out of the money (OTM) option contracts shall expire worthless. All devolved futures positions shall be considered to be opened at the strike price of the exercised options. All exercised contracts within an option series shall be assigned to short positions in that series in a fair and non-preferential manner. |
#ITM for call option = Strike Price < Settlement Price ITM for put option = Strike Price > Settlement Price | |
Due Date Rate (Final Settlement Price) | Daily settlement price of underlying futures contract on the expiry day of options contract. |
Option Contract Launch Month | Option Contract Expiry Month |
October 2025 | January 2026 |
November 2025 | February 2026 |
December 2025 | March 2026 |
January 2026 | April 2026 |
February 2026 | May 2026 |
March 2026 | June 2026 |
April 2026 | July 2026 |
May 2026 | August 2026 |
June 2026 | September 2026 |
July 2026 | October 2026 |
August 2026 | November 2026 |
September 2026 | December 2026 |