Post on 07-Apr-2018
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Trading Mechanism at MCX
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Monday to Friday
Agricultural commodities:
10.00 a.m. to 5.00 p.m.
Bullion, Metals, Energy and Plastics10.00 a.m. to 11.30 p.m.
Saturday (all commodities)
10.00 a.m. to 2.00 p.m.
Holidays notified in advance
Trading Session
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Online Trading
Automated screen-based trading
National reach
Transparent, objective and fair system for automatic ordermatching
Identity of the trader undisclosed
Flexibility for placing orders
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Online Trading contd..
Online market information
Price quotes in Indian Rupees
Square-off facility
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Contract specifications
Trading
Trading period
Trading session
Trading unit
Quotation/Base Value Price quote
Maximum order size
Tick size (minimum price movement)
Daily price limits
Initial margin
Special margin
Maximum allowable open position
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Quantity fields-TWS
Commodities Weight Lot Quotation
Gold kg1 1 grms11
Silver kg11 1 kg1
Copper MT1 1 kg1Crude Oil BBL111 1 BBL1
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Types of order
Price related conditions
Limit Order :- specifying the price at which the trade should
be executed
Market Order:-To be executed at prevailing price. if there isno market order at that point of time, it takes the last traded
price & remains in the system.
Stop loss Order:- Remains in the system inactive/abeyance
mode and is activated only on trigger of the price, definedby member.
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Types of order
Time related conditions
Day Order
Available for execution during the Trading Day until
executed or cancelled Unexecuted Day orders get cancelled at EOD
Good Till Cancelled (GTC)
Available for execution till expiry of the contract or till it iscancelled, whichever is earlier
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Types of order
Time related conditions
Immediate or Cancel (IOC)
Order gets cancelled if not executed
Good Till Date (GTD)
Available for execution till end of the specified date or tillthe last trading day of the contract month, whichever is
earlier
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Order matching
Price time priority
Best Buy Order Best Sell Order
Order modification & cancellation
Unique order no./trade no.
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Polling of Spot Prices
Prices polled from physical markets between 10.00 a.m. and 5.00 p.m.
Telephonic conversation recorded
During last 15 days prior, the number of participants increases to 15
Disseminated instantaneously
* On the Price Ticker in TWS
* Updated in Underlying Asset Price in Market Watch
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Polling of Spot Prices - Sources
Source list defined Commodity-wise & categorized
Prices polled from business participants like traders, millers,whole sellers, exporters, importers and different service
providers etc.
Source list vetted by Product Specialist and approved after duediligence
In some commodities like mentha oil, potato, pulses pricespolled from minimum 30 sources
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Energy: Brent Crude Oil, Furnace Oil and ME Sour Crude Oil
Fibre: Cotton short Staple and Kapas
Metals: Copper, Sponge Iron and Steel Flat
Oilseeds: Castor Seed, Groundnut Oil and Sesameseed
Spices: Red Chilli
Others: Cashew Kernel
Bullion: Gold, Gold Mini, Silver and Silver Mini
Energy: Crude Oil
Fibre: Cotton Long, Cotton Medium and Cotton Yarn
Grains: Basmati Rice, Maize, Rice, Sarbati Rice and Wheat
Jaggery: Gur Chaku Sugar M and Sugar S
Metals: Aluminium, Lead, Nickel, Tin, Steel Long andZinc
Oilseeds (edible): Crude Palm Oil, Coconut Oil, Coconut Oilcake, Mustard Oil,
Mustard Seed, RBD Palmolein, Soy Seed, Soy Meal, Sunflower Oil and Rice
Bran Oil
Oilseeds (non-edible): Castor Oil, Cotton Seed and Kapasia KhalliPetro-chemicals: PPTQ, HDPEHM and PVC
Spices: Black Pepper, Cardamomand Jeera
Others: Arecanut, Rubber and Potato
Pulses: Chana, Masur and Yellow Peas
Others: Guar Seed, Guar Gum and Mentha Oil
Thrice a day
* 10:30 am to 12:30 pm
* 2:00 pm to 3:00 pm
* 3:45 pm to 4:30 pm
Twice a day
* 10:00 am to 12:30 pm
* 3:45 pm to 4:30 pm
Once a day* 10:00 am to 12:30 pm
Polling of Spot Prices - Duration
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Polling of Spot Prices - Validation
Out of the range prices are
eliminated from the polled prices
and average of the remaining prices
taken
In case of higher price volatility,
price are polled from large number
of participants
In case of contracts having open
interest and liquidity, crossverification of polled prices with
business development team,
branch (s) etc.
NAME NUMBER PRICE Rs. REMARKS
A1 11111 1200
A2 22222 1205
A3 33333 1206
A4 44444 1200
A5 55555 1205
A6 66666 1209 Eliminated
A7 77777 1195 Eliminated
A8 88888 1206
A9 99999 1205
Spot Price 1203.85
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Due date rate is the final settlement price for particular future contract &calculation process called computation of DDR.
Due date rate is calculated by taking simple average of specific number ofdays (1, 3 or 5) prior to expiry of the contract as specified in the contracts
Monitoring spot price 15 days prior to the expiry
Polling is increased during DDR period and maximum no of participants are
called
Due Date Rate
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Close Price
Close Price * System generated at the end of the day * Formula
Close price is the weighted average price of all trades
executed during last 30 minutes in a given contract.
If less than 5 trades during last 30 minutes, then last 5trades executed during a trading day
If less than 5 trades during the day, then all trades.
If no trades is executed, last closing price.
However, the Exchange can modify such price in case ofsignificant movement in the spot market
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Function Keys
Shift+F8 Contract Specification
F1 Buy Order (+)Surveillance Watch
F2 Sell Order (-)
F3 - Order Book
F4 - Market Watch
F5 - Market picture
F8 - Trade Book
Net position
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Logon screen
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Market Watch Screen
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Ticker
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Contract Information
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Order entry - Sell
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Order Entry - Buy
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Order - Validity
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Order Entry Stop loss sell order
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Order entry Stop loss - Buy
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Order Book - All
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Trade book - All
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Net Position book
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Market Picture Best five Buy - Sell
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Surveillance Watch
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Messages Log
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Thank You
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Disclaimer
This presentation has been prepared to provide awareness & information
purpose only. While every effort has been made to assure the accuracy of
the information contained herein, any affirmation of fact in this presentation
material shall not create an express or implied warranty that any example or
description is correct. This material has been made available on thecondition that errors or omissions shall not be made the basis for any
claims, demands or cause of action. The information provided, has been
taken from sources believed to be reliable, but is not guaranteed by the
FTKMC as to accuracy or completeness , and is intended for the purposes
of education and information only. The Rules and Regulations of the
Exchange should be consulted as the authoritative source on all contract
specifications and regulations.