Good news, gold & silver traders! MCXCCL removes extra margins—All you need to know

Multi Commodity Exchange Clearing Corporation (MCXCCL) removed certain additional margins applicable to gold and silver futures with effect from Thursday, February 19. With this, traders are no longer required to bear additional margins of 3 per cent and 7 per cent on gold and silver contracts, respectively.

MCX Clearing Corp is a wholly owned subsidiary of commodity derivative exchange MCX. It functions as the central counterparty for all trades on MCX.

As MCX's wholly-owrned unit, MCXCCL handles clearing, settlement, collateral management and risk oversight exclusively for the exchange.

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What changes for gold and silver traders?

The removal of additional margins eases the capital burden for traders.

Lower margins reduce upfront capital needs, freeing up larger funds for more positions or diversification.

Traders can utilise this liquidity to deploy leverage more efficiently.

Analysts say that the move is set to lead to higher volumes and participation in the precious metal contracts.

Earlier, the commodity derivatives exchange had imposed additional margins on futures of both precious metals with the aim of managing extra risk on account of market volatility.

The additional charges levied by the bourse were over and above standard requirements and applied to all variants of the respective gold and silver futures contracts.

Precious metals kicked off 2026 on a wild note with some of their worst swings recorded in years, after delivering strong returns (74 per cent and 130 per cent in the yellow and white metals, respectively) the previous year.

While gold rallied on geopolitical and economic uncertainties, rapid central bank buying and rising domestic consumption, silver was also underpinned by a pickup in industrial demand, especially in areas like solar manufacturing, electronics and EVs.

Gold and silver in 2026

In 2026 so far, international gold and silver benchmarks have risen 14.9 per cent and 10.9 per cent, respectively.

Their year-to-date gains are driven mainly by safe-haven demand amid underlying geopolitical tensions and weakness in the US dollar.

Typically, bouts of uncertainty prompt investors to move away from riskier asset classes -- like equities -- to gold and silver for their inflation-beating appeal.

Gold has historically served as a dependable hedge against market uncertainties, outperforming equities while protecting wealth against inflation over long horizons.

Silver shares similar traits, though the white metal tends to be more volatile due to its relation with industrial demand.

MCX shares

MCX shares attracted buying interest on Thursday, shrugging off a market-wide sell-off. The stock jumped as much as 4.0 per cent to Rs 2,435.8 apiece on BSE during the session, before closing with a gain of 1.0 per cent at Rs 2,363.6 apiece.

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Here are answers to a few frequently asked questions (FAQs) about the story:

Why did MCXCCL impose additional margin fees on gold and silver futures?

The charges were levied, over and above standard margins, to manage risks emanating from extreme volatility in the precious metal basket.

Simply put, volatility in precious metal rates had triggered the charges.

What's the status of these extra levies?

As of February 19, 2026, the additional margin charges have been removed.

What were the charges like?

The bourse charged additional margins of 3 per cent on gold contracts and 7 per cent on silver contracts.

What is MCXCCL and what does it do?

A wholly owned subsidiary of MCX, MCX Clearing Corporation Ltd (MCXCCL) acts as the central counterparty for clearing, settlement, collateral management and risk oversight on the commodity exchange's trades.

What drove gold and silver rates higher in 2025?

Both precious metals staged their strongest rallies in decades in 2025 owing to a mix of factors, like geopolitical risks, central bank buying, and rising retail and industrial demand.

What happens next?

Analysts expect higher market participation and volumes in gold and silver futures going forward.

When will the levies be removed?

The levies have already been removed, effective February 19.