The Silver expiry date on MCX is crucial to monitor. As a trader, understanding the implications of this expiration can help you manage positions better. That’s what we’ll discuss in this article about the Silver Expiry date on MCX in 2023.
What Does Silver Expiry Date Mean?
The Silver expiry date refers to the day on which Silver futures & options contracts traded on the Multi Commodity Exchange (MCX) expire.
This means that on the Silver futures expiry date, any open positions in Silver futures contracts with that particular expiration month will need to be settled, closed out, or rolled over.
After the expiry date, those contracts will no longer be valid for trading, and new contracts with later expiration months will typically be introduced for trading.
Silver Expiry Date MCX
Silver contracts on MCX are launched on the 16th day of the respective month. If this day happens to fall on a holiday, then the contract is launched on the following day. Here is the complete list of MCX Silver expiry dates.
|Contract launch date||Expiry date||Status|
|March 2022||March 2023||Expired|
|May 2022||May 2023||Expired|
|July 2022||July 2023||Expired|
|September 2022||September 2023||Expired|
|December 2022||December 2023||Active|
You’ll be able to trade these contracts till up to the 5th day of the expiry month. That’s termed as the last trading day. If the 5th day happens to be a holiday, then the preceding day would be considered as the Silver expiry date on MCX.
Factors That Can Affect Silver Prices at Expiry
Several factors can influence Silver expiry date. It is a precious metal that is much sought after and is driven by various factors mentioned below.
1. Supply and Demand Dynamics
Supply and demand dynamics strongly influence Silver prices at expiry. Increased industrial, investment, and jewelry demand can drive prices higher when supply is limited.
Conversely, excess supply with subdued demand can lead to a decrease in the price of this metal. Speculating on Silver price changes in futures contracts would require you to understand this delicate balance.
2. Changes in Interest Rates
There is an inverse relationship between interest rates and the prices of commodities such as Silver. That’s why it is potentially lucrative to hold on to Silver when interest rates are low.
Conversely, higher interest rates might push traders and investors towards bonds. Thus, it’s wise to keep an eye on interest rate changes as they can push Silver’s worth at contract expiry.
3. Global Economic Conditions
When the economy grows, industries need more Silver for electronics. What will this do? Lift Silver prices.
In uncertain times, people trade in Silver for safety, also raising prices. When interest rates are low, holding Silver is more appealing, often increasing prices.
Silver can shield against inflation, making it attractive during rising prices. Pay attention to currency value, too, as a stronger currency might lower Silver prices.
Changes in the strength of the USD relative to other currencies can impact the price of Silver too.
How to Trade Silver Contracts?
Trading Silver contracts involves participating in the Silver futures market. Here’s a simplified step-by-step guide on how to trade Silver contracts:
1. Educate Yourself
Educate yourself on commodities markets, futures trading, and factors affecting Silver prices.
Understand supply, demand, geopolitical events, and economic indicators.
This foundation is crucial before trading Silver contracts, as it helps you make informed decisions and navigate the complexities of the market effectively.
|Market Hours||09.00 AM to 11.30 PM (11.55 PM*)|
|Trading Days||Monday to Friday|
|Base Value||1 kg|
|Maximum Order Size||600 kg|
|Tick Size||Rs. 1 per kg|
2. Choose a Trading Platform
Select a reliable futures trading platform to trade Silver contracts. This online service provides the tools and information you need for commodities trading such as Dhan provides several tools and information to help you in your trading journey.
3. Open an Account
To begin trading Silver contracts, you can open an account with us. You would need to provide personal info and ID and possibly trading experience details.
This trading account serves as your gateway to the commodities futures market, allowing you to deposit funds, access contract information, and execute trades based on your market analysis and strategies.
4. Analyze the Market
Analyze the Silver market by studying price charts, using technical indicators, and staying informed about news. This helps you predict Silver price movements. Combining both technical and fundamental analysis guides your trading decisions and potential strategies.
5. Create a Trading Strategy
Create a trading strategy that includes your risk tolerance, profit goals, entry and exit criteria, and risk management rules. A well-defined strategy can help you make rational decisions in the heat of trading.
6. Monitor the Market and Execute Trades
Monitoring the market involves staying updated on Silver price trends, economic indicators, and news affecting the metal’s value.
When executing trades, place orders to buy or sell Silver contracts based on your strategy and the current market conditions using a chosen trading platform
The Silver expiry date is a critical aspect of trading Silver contracts, indicating the point at which the contract must be settled.
As this date approaches, traders should be prepared to either close their positions or roll them over to the next contract.
To navigate such complexities, platforms like Dhan provide valuable tools and information, guiding you effectively through the complexities of commodity trading.
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