MCX Introduces Silver 100 Futures Contract for Smaller Hedging and Investment Needs

The Multi Commodity Exchange of India (MCX) has introduced a new Silver 100 Futures contract, expanding its range of silver derivatives products. The new contract began trading on June 1, 2026, and is designed to meet the needs of jewellers, small businesses, and retail investors looking for a smaller and more flexible silver trading option.

MCX Strengthens Its Silver Product Portfolio

MCX is one of the world's leading commodity derivatives exchanges and is ranked as the largest commodity options exchange globally, according to the FIA 2025 report.

Silver remains one of the most actively traded commodities on the exchange. During FY26, Silver Futures recorded an average daily turnover of ₹21,648 crore, while Silver Options saw an average daily turnover of ₹74,883 crore.

MCX already offers silver futures contracts in 30 kg, 5 kg, and 1 kg sizes, along with silver options contracts in 5 kg and 30 kg variants.

Why Has MCX Introduced Silver 100 Futures?

The new Silver 100 Futures contract has been launched following feedback from market participants who wanted a smaller contract size that better suits their trading and business requirements.

The contract is expected to help:

• Local jewellers manage silver price risks more effectively.
• Small and medium-sized enterprises (SMEs) hedge their silver exposure.
• Retail investors participate in silver trading with lower capital requirements.
• Traders gain greater flexibility through a smaller contract size.

According to MCX, the product is designed to make silver trading and hedging more accessible while maintaining the benefits of a regulated exchange platform.

Benefits of the Silver 100 Futures Contract

The newly launched contract offers several advantages:

Easier Hedging and Investment

The smaller contract size allows jewellers, SMEs, and retail participants to manage price risks without taking exposure larger than their actual business or investment needs.

Lower Capital Requirement

Participants can trade or invest in silver with a smaller financial commitment compared to larger silver contracts.

Flexible Trading Opportunities

The contract is expected to improve accessibility and provide more trading flexibility for a wider range of market participants.

Delivery Benefits at Contract Expiry

For investors choosing physical delivery upon contract expiry, the Silver 100 Futures contract offers:

• Easier delivery process
• Transparent making charges
• Assured product quality
• Delivery through a regulated exchange framework

These features aim to increase confidence among participants seeking physical silver delivery.

Push for Domestic Silver Refining and Recycling

Alongside the launch, MCX has also revised its Good Delivery Norms for silver and invited eligible domestic refiners to apply for empanelment under the updated framework.

The initiative is expected to encourage domestic silver refining and recycling while reducing reliance on imported silver in the long term.

Clearing and Settlement Arrangements

MCX had informed market participants about the launch through a circular issued on May 14, 2026. The clearing and settlement of the Silver 100 Futures contract will be handled by the Multi Commodity Exchange Clearing Corporation Limited (MCXCCL).

About MCX

Established in 2003, MCX is India's leading commodity derivatives exchange. The exchange accounted for nearly 98% of the value of commodity futures trading in India during FY25.

MCX offers trading across multiple commodity segments, including bullion, energy, base metals, and agricultural commodities. It also provides commodity indices and maintains partnerships with several domestic and international exchanges and trade associations.

Multi Commodity Exchange of India Share Price Movemment

Multi Commodity Exchange of India share price (NSE: MCX) was trading at ₹2,886.30 on the NSE at 1:18 PM on June 1, down 2.31% or ₹68.20 from the previous close. The stock opened at ₹2,967 and touched an intraday high of ₹2,987.50 before falling to a low of ₹2,878.20. MCX currently has a market capitalisation of ₹73,460 crore and trades at a price-to-earnings (P/E) ratio of 55.27. 

Read More: Reliance Retail's Luxury Arm Revenue Rises 45% to ₹3,494 Crore, Net Loss Narrows 51% in FY26!

Conclusion

The launch of Silver 100 Futures marks another step by MCX to broaden participation in India's silver market. By offering a smaller contract size, the exchange aims to make silver hedging and investment more accessible for jewellers, SMEs, and retail investors while supporting the growth of domestic silver trading and recycling.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks. Read all related documents carefully before investing.