Commodity market regulator FMC today removed an additional 5 per cent margin on the future contracts of gold and silver due to less volatility in prices of these commodities.
The additional margin has also been abolished from crude oil,Brent crude oil,natural gas,aluminium,copper,lead,nickel and zinc traded on the six national commodity exchanges till further orders.
The removal of margins on these commodities will be effective from November 7,FMC said in a circular. Since the price volatility has subdued in the recent past,the Commission has decided to remove the additional margin of 5 per cent in all the contracts of gold,silver,crude oil,Brent crude oil,natural gas,aluminium,copper,lead,nickel and zinc traded on the national exchanges till further orders, the circular added.
A margin is the amount of cash an investor must put up to open an account to start trading. The additional margin of 5 per cent on future contracts of gold,silver,brent crude oil,crude oil and natural gas was imposed on August 29 this year,a day after gold touched the all time high of Rs 34,500 per ten grams in the intra day trade.
Whereas,additional margin on base metals namely aluminium,copper,lead,nickel and zinc was imposed on September 3 this year to tackle volatility in the market.