MCX, NSE Remove Extra Margins on Gold and Silver Futures to Ease Trading Costs; Know New Margin Rules & Impact

The Multi Commodity Exchange of India (MCX) and the National Stock Exchange of India (NSE) have announced the withdrawal of additional margins on gold and silver futures contracts, effective Thursday, February 19, 2026. The move is expected to lower trading costs and free up capital for bullion traders across both exchanges.

MCX Withdraws 3% Gold Margin, 7% Silver Margin

In a circular issued on Wednesday evening, MCX confirmed that the additional 3% margin imposed on all gold futures contracts will be removed. The exchange also announced the withdrawal of the extra 7% margin levied on all silver futures contracts.

The circular stated, "Additional Margin of 3% levied in Gold Futures (all contracts of all variants) and 7% levied in Silver Futures (all contracts of all variants) shall be withdrawn with effect from Thursday, February 19, 2026."

MCX has directed clearing members to update their systems and risk management frameworks in line with the revised margin requirements.

NSE Withdraws Additional Margins on Gold and Silver Futures

Separately, NSE Clearing issued a similar notification confirming the removal of additional margins on gold and silver futures contracts from February 19. Members have been advised to adjust their positions and collateral allocations accordingly.

With both exchanges implementing the change simultaneously, traders in bullion derivatives will experience immediate relief in margin obligations.

What the Removal of Additional Margins Means for Traders

The withdrawal of extra margins directly reduces the capital required to take or maintain positions in gold and silver futures.

Lower margin requirements typically:

• Reduce the total funds blocked in trading accounts
• Improve liquidity in bullion derivatives
• Encourage higher speculative participation
• Increase intraday trading activity
• Support fresh long and short position building

As a result, market participants may see a rise in trading volumes and turnover in gold and silver futures contracts.

Why Were Additional Margins Imposed on Gold & Silver Futures?

The additional 3% margin on gold and 7% on silver were introduced earlier to curb excessive volatility in bullion prices. Sharp price swings in international and domestic markets had prompted exchanges to tighten risk measures.

With volatility conditions relatively stabilising, exchanges have now decided to roll back these precautionary margins.

Impact on Bullion Futures Market

With the extra 3% margin on gold and 7% on silver now withdrawn, traders require lower upfront capital to participate in futures trading. Historically, reduced margin requirements tend to support:

• Greater market participation
• Higher liquidity
• Increased volatility in the short term
• Improved price discovery

However, while lower margins can boost trading activity, price risks remain tied to global cues, US economic data, dollar movements, and geopolitical developments.

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