INDIA COMMODITY EXCHANGE (Seize the right opportunity)


Risk Management

The exchange adopts various tools and practices to protect the market participants against adverse market conditions. It identifies and evaluates the risks through Risk Preventive Measures.

Margining System
  • Initial Margin: Initial margin is the VaR based margin, subject to a minimum Base Margin approved by the regulator for the respective commodity.
  • Extreme Loss Margin: Margins to cover the loss in situations that lie outside the coverage of the VaR based initial margins.
  • Additional Margin:  The margin over and above the initial margin which is levied due to price volatility in the short period.
  • Regulatory Margin: Margin recommended by regulator to be levied in a particular commodity contract based on the market intelligence or to curb abnormal price movement.
  • Long Margin/Short Margin: When the margin is imposed only to buyer or seller against their position that margin is called long and short margin respectively.
  • Tender and Delivery Period Margin: The Margin imposed during the tender and delivery period of the contract. Purpose of this margin is to enable smooth settlement of trade during the expiry.
Position Limit
  • Client Wise: A client is allowed to hold the maximum quantity of open position in a particular commodity contract/contracts.
  • Member Wise: A member is allowed to hold the maximum quantity of open position including all their clients in particular commodity contract/contracts.
  • Near and Far month Position Limits: Open position in the contract which is nearby to expiry months may be different than that of far months. Generally the open position limit is reduced in nearby month expiry contracts. A buyer/seller has to reduce his position to permissible position limit in the contract.

Daily Price Range (DPR Limit): Each contract has a fixed price band. The trade is allowed within the given price range. The range is typically fixed through a standard percentage as per the daily price volatility of the commodity. In case of special circumstances based on the fundamentals of the commodity the daily price range is revised.

Mark to Market of Positions on Daily basis: All the outstanding position of the market participants are marked on daily basis to the closing market price of the contract. The mechanism ensures that the gain/loss relative to commodity price movement is adjusted on daily basis by debit/credit of respective members settlement account before commencement of the trade next day.

Value at Risk (VaR) measures the largest loss likely to be suffered on a portfolio position over a particular period with a given confidence level. VaR is measured in three variables: the amount of potential loss, the probability of that amount of loss and the time frame.

From Date
To Date
File Id
(Data available from )View In CSV     View In Excel     
Date File Id Commodity Expiry Date Initial Margin (%) Tender Margin (%) Total Margin (%) Additional Long Margin (%) Additional Short Margin (%) Special Long Margin (%) Special Short Margin (%) ELM Long (%) ELM Short (%) Delivery Margin (%)

The members are requested to forward all their clearing & settlement related correspondence on the following address:

Indian Commodity Exchange Limited (ICEX)

Clearing & Settlement Department

Reliable Tech Park, 403-A, B-Wing, 4th Floor, Thane-Belapur Road,

Airoli (E), Navi Mumbai – 400708, Maharastra, India.

Indian Commodity Exchange Ltd | CIN : U67120GJ2008PLC099142 Corporate Office: Reliable Tech Park, 403-A, B-Wing, 4th Floor, Thane-Belapur Road, Airoli (E), Navi Mumbai – 400708, India. Tel.No:+91-22-40381500 | Fax No:+91–22-40381511 Registered office:1st Floor, Office-109, Nodh No.- 1158 to 63/65/9, Hat Faliyu, Mahidharpura, Surat, Gujarat-395003, India |Tel. No.: +91-261-2609960/3009960
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