MCX Electricity Futures Contract 2026: Lot Size, Margin & Specs
MCX Electricity at ₹5,800/MWh · Sep 2026 (derived, not live)
MCX Electricity is India's newest commodity derivative — launched in 2026, it is the first MCX contract that is cash-settled only and references a real-time spot market price (the IEX Day-Ahead Market) instead of a global benchmark or physical delivery. It currently has one contract shape (no Mini/Standard split like gold or silver) and no options chain.
| Contract | Lot Size | Quoted | Tick Size | P&L / tick | Contract Value* | Margin* | Settlement |
|---|---|---|---|---|---|---|---|
| Electricity | 50 MWh | ₹/MWh | ₹1 | ₹50/lot | ₹2.9 lakh | ₹29,000 – ₹44,000 | Cash only — no delivery |
* At Sep 2026 (derived, not live) MCX Electricity price of ₹5,800/MWh (derived from reported turnover/volume, not a live quote — this page updates automatically once a live feed is available). Margin indicative at 10–15% of contract value per MCX's published 10%-or-SPAN-whichever-is-higher rule; actual margin set by MCX and your broker daily. Verify on your broker's SPAN calculator before trading.
Why Electricity trades differently from every other MCX contract
Every other MCX contract — gold, silver, crude oil, base metals — either allows physical delivery or tracks a global exchange benchmark (COMEX, LME, Henry Hub) via an import-parity formula. Electricity does neither. It cannot be stored, so delivery is impossible; and there is no global "electricity price" to import-parity against, since power markets are inherently local and grid-specific.
- Reference price: Volume Weighted Average of the Unconstrained Market Clearing Price (UMCP) on the IEX Day-Ahead Market (DAM)
- Settlement: Cash only — no physical delivery, no vaults, no delivery KYC
- Regulation: SEBI regulates the MCX futures contract; CERC regulates the underlying IEX spot market
- Contract months: Near, next, and far month — trading has been active across four expiry months at once
Worked example
Contract value = ₹5,800 × 50 = ₹2.9 lakh
Margin (at ~10%) = ₹29,000
Price rises ₹200/MWh → Profit = ₹200 × 50 = +₹10,000
Price falls ₹200/MWh → Loss = ₹200 × 50 = −₹10,000
(₹200 move = 3.4% of current price)
Trading hours and margin
MCX Electricity trades on the same session as every other MCX commodity — 9:00 AM to 11:30 PM IST on weekdays (extended to 11:55 PM during the US daylight-saving window). Margin is set at 10% of contract value, or SPAN, whichever is higher — a simpler rule than the tiered SPAN ranges used for gold or crude, but one that can still move meaningfully if the IEX DAM price becomes volatile (heatwaves, coal shortages, or grid stress can all widen the effective margin overnight).
No options — yet
Unlike gold, silver, crude oil, natural gas, and copper, MCX Electricity has no listed options contract as of this writing. Only a plain long or short futures position is available. This site's Strategy Builder tool reflects this — Electricity appears there as a futures-only instrument, without the strike-chain and options-strategy templates used for the other five.
Frequently asked questions
What is the MCX Electricity futures lot size?
MCX Electricity futures have a lot size of 50 MWh, quoted in ₹ per MWh. You can trade a minimum of 1 lot and a maximum of 50 lots per order. The tick size is ₹1/MWh, which works out to ₹50 profit or loss per lot for every ₹1/MWh the price moves.
Why is MCX Electricity cash-settled only, with no physical delivery?
Electricity cannot be stored or delivered like gold or crude oil — it must be consumed as it is generated. So MCX Electricity futures are cash-settled only: at expiry, your position is settled in rupees against the reference price, with no delivery process, vaults, or KYC-for-delivery requirements that apply to MCX's physical-delivery contracts like gold or silver.
Are there options on MCX Electricity futures?
Not as of this writing. MCX has listed only electricity futures — no options chain exists yet, unlike gold, silver, crude oil, natural gas, and copper, which all have MCX options. Reports around the futures launch noted that electricity options "might follow" in the future, but no launch has been confirmed.
What price does MCX Electricity futures settle against?
MCX Electricity futures cash-settle against the Volume Weighted Average of the Unconstrained Market Clearing Price (UMCP) on the Indian Energy Exchange's (IEX) Day-Ahead Market (DAM) — the price at which India's spot electricity market clears a day ahead of actual delivery. This ties the MCX futures price directly to real-time power demand and supply conditions.
Why does both SEBI and CERC regulate MCX Electricity futures?
This is a genuinely unusual dual-regulator setup. SEBI (Securities and Exchange Board of India) regulates the MCX derivative itself, the same as any other commodity futures contract. CERC (Central Electricity Regulatory Commission) regulates the underlying IEX spot market that the contract references. Traders don't interact with CERC directly, but this split reflects electricity's unique status as both a traded commodity and a regulated utility.
What happens when an MCX Electricity futures contract expires?
MCX lists Electricity futures for near, next, and far months, with contracts currently trading across four expiry months at once. At expiry, every open position is cash-settled against the reference IEX DAM price — automatically, with no delivery intention filing or physical settlement process. This is simpler for traders than MCX's physically-deliverable contracts, where positions must be squared off before expiry to avoid delivery.
BhaavBrief · MCX commodity intelligence · Data auto-updated with every site deploy from live MCX feed once available · Last updated Sep 2026 (derived, not live)
Prices are indicative. Verify live margins on your broker's SPAN calculator before trading. Tax treatment for this newly launched, cash-settled-only contract type had not been separately confirmed as of this writing — consult a tax advisor before filing. Trading commodity futures involves significant risk of loss.