Post on 29-Dec-2015
Aluminium(1kg) 117.95 Cashewkern(1kg) 265.00 Coffeerob(100kgs) 99943.00 Copper(1kg) 332.50 Crude oil(1 bbl) 4026.00 Furnace oil(1000kgs) 20890.00 Gold(10gms) 12264.00 Jute(100kgs) 1243.00 Silver(1kg) 23430.00
IntroductionIntroductiono A nationwide online multi commodity market placeo An independent and demutualised exchangeo Promoted by Financial Technologies Limitedo Formulated strategic alliances with leading commodity trade associations in Indiao Poised to emerge as “exchange of choice”
Aluminium(1kg) 117.95 Cashewkern(1kg) 265.00 Coffeerob(100kgs) 99943.00 Copper(1kg) 332.50 Crude oil(1 bbl) 4026.00 Furnace oil(1000kgs) 20890.00 Gold(10gms) 12264.00 Jute(100kgs) 1243.00 Silver(1kg) 23430.00
Trading at MCXTrading at MCX
o Trading days and hourso Exchange members & authorized users are entitled to trade o Clearing the Trades on MCXo Process of settlement and deliveryo Physical delivery in the warehouseo Role of a Warehouse in Futures Market
Aluminium(1kg) 117.95 Cashewkern(1kg) 265.00 Coffeerob(100kgs) 99943.00 Copper(1kg) 332.50 Crude oil(1 bbl) 4026.00 Furnace oil(1000kgs) 20890.00 Gold(10gms) 12264.00 Jute(100kgs) 1243.00 Silver(1kg) 23430.00
Why MCXWhy MCX
o Leverageo Commission costso Liquidityo Ability to go short o Reduced Risks
Aluminium(1kg) 117.95 Cashewkern(1kg) 265.00 Coffeerob(100kgs) 99943.00 Copper(1kg) 332.50 Crude oil(1 bbl) 4026.00 Furnace oil(1000kgs) 20890.00 Gold(10gms) 12264.00 Jute(100kgs) 1243.00 Silver(1kg) 23430.00
Why MCXWhy MCX
o Diversification o Helps to Fix Price Easilyo No transportation chargeso Why invite risk by investing in a metal company when you can trade in the metal itself
Aluminium(1kg) 117.95 Cashewkern(1kg) 265.00 Coffeerob(100kgs) 99943.00 Copper(1kg) 332.50 Crude oil(1 bbl) 4026.00 Furnace oil(1000kgs) 20890.00 Gold(10gms) 12264.00 Jute(100kgs) 1243.00 Silver(1kg) 23430.00
DemeritsDemerits
o Leverageo Speed of trading o Poor supervisiono Huge volatility & uncertainty
Aluminium(1kg) 117.95 Cashewkern(1kg) 265.00 Coffeerob(100kgs) 99943.00 Copper(1kg) 332.50 Crude oil(1 bbl) 4026.00 Furnace oil(1000kgs) 20890.00 Gold(10gms) 12264.00 Jute(100kgs) 1243.00 Silver(1kg) 23430.00
Differences Differences Commodity derivatives Financial derivatives
Settled by actual deliveries Cash settled
Quantity and quality differences exist No such differences exist
Holding cost includes assaying, warehousing & insurance costs
Holding costs normally consists of only interest costs
Seasonal in nature Active throughout the year
Factors impacting:• demand and supply•Import-export regulations•Government intervention
Factors impacting:•Global and local economic conditions•Performance of the entity •Taxation structure