InvestorQ : Is the Cardamom futures popular in India and if so, why?
Anusha Savla made post

Is the Cardamom futures popular in India and if so, why?

Answer
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Anamika Sodhani answered.
2 years ago


The Cardamom futures on the MCX are one of the most liquid and high volume contracts among agri-products. We shall look at the reasons for this interest in cardamom futures later. First, let us understand the nuances of the Cardamom Futures contract in India.

The Cardamom futures are available in lot sizes of 1 quintal, where 1 quintal is equivalent to 100 KG. At a price of Rs.1050, the notional value of a cardamom futures contract is just Rs.105,000. If you consider the initial margin of 5%, this contract becomes accessible to even a very small trader. The contracts typically expire each month on the 15th of the calendar month and on the 16th of the same month the next series will be launched. The series is typically 5 months away; therefore in the month of August 2017, a new January 2018 contract will be launched. In all there are 12 monthly contracts that are available on Cardamom. This is typical of agri products as it provides the facility for participants to hedge across the sowing and harvesting cycle of the crop.