What It Means
Crude Oil Mini is MCX's smaller version of its crude oil futures contract, representing 10 barrels per lot instead of the 100 barrels in the standard Crude Oil contract. It exists so traders can take a crude oil position with a tenth of the capital the standard contract needs.
How It Works
The tick size on Crude Oil Mini is ₹1 per barrel, so each ₹1 move in price changes a position's value by ₹10 per lot (versus ₹100 per lot on the standard contract). Both contracts are cash-settled, based on the average of prices from international benchmarks, and expire monthly. Because crude oil is priced in US dollars internationally, both contracts move with dollar crude prices and with the USDINR exchange rate.
Example
If crude oil is trading at ₹6,400 a barrel, one Crude Oil Mini lot has a notional value of ₹64,000. A move to ₹6,450 (up ₹50) adds ₹500 to a long position, a tenth of the ₹5,000 move the same price change would create on the standard contract.