Silver mini contract better than regular silver?

algotrader

Started trading silver mini on MCX last month. Lot size is only 5kg vs 30kg in regular contract. Much easier to manage positions and risk. Why doesnt everyone trade mini contracts? Is there any disadvantage I am missing?

algotrader

Reply by: ProTrader_Bangalore
Mini contracts have lower liquidity compared to regular contracts. You will notice bid-ask spread is wider in mini. Also during volatile times you may not get filled at desired price. For small retail traders mini is fine but if you are trading larger quantities then regular contract is better because of liquidity.

algotrader

Reply by: MCX_Educator
One more thing - mini contracts were introduced to attract retail participation but volumes are still low. So sometimes even placing 2-3 lot order can move the price. Regular silver contract has much better volume and you get better price discovery.