MCX, the country’s largest commodity exchange, has increased the margin for cotton August 22 expiry futures contract to 11 per cent from the existing 6 per cent for buying and selling. The enhanced margin will come into effect from Monday.
In a bid to curb speculation, the exchange has narrowed the daily price limits (DPL) for cotton August contracts to 2 per cent with no further relaxation in the daily price limit, thereafter. The narrower slab will be effective from Monday, it said. However, the will be no change in DPL in other cotton contracts.
However, the will be no change in DPL in other Cotton contracts (new season contract from October 2022 onwards), it added.