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What does clubbing of open position limit on MCX mean?

When you hold multiple commodity accounts (Individual, Corporate, Partnership, HUF, etc.) with different or the same broker, the exchange clubs all your open positions in these accounts to determine your overall open position limit for each contract, as mentioned in the SEBI circular. The exchange levies a penalty if your overall open positions exceed the stipulated limit.

Opting out of position clubbing

If you wish your positions not to be clubbed, you must give written consent to Zerodha, mentioning the reasons for not clubbing the positions. Zerodha will forward your request to the exchange.

To learn more, refer to this Guidelines on Clubbing of Open Positions.

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