Lead contracts are also available in two versions viz. Big Lead and Mini Lead contracts. The Big Lead contract has a minimum lot size of 5 MT, while the Mini Lead contract has a contract lot size of 1 MT. On the MCX, the price of lead is quoted in Rs./KG. Currently, lead quotes on the MCX at Rs.150/KG. Therefore at a minimum lot size of 5MT (5000 KG), the minimum lot value of Big Lead contract will be Rs.750,000. The initial margin consists of 4% SPAN margin and an additional 1% extreme loss margin. Thus your margin payable will work out to Rs.37,600 on a single lot of Big Lead.

The Big Lead futures are among the 10 most liquid contracts on the MCX at any point of time and since the contract is quoted exclusive of taxes, levies and charges, the domestic price approximately reflects the global price converted into INR terms. There are 5 open contracts on Lead with each month introducing a contract five months hence. Lead Mini tends to attract trader interest whenever there is an arbitrage opportunity with the Big Lead contract.

It needs to be understood that lead is an important metal with very unique economics as it is the one metal which derives 50% of its supply through recycling. But above all, it is also an indicator of the ups and downs of the economic cycle the world over.