12
o Introduction o Trading at MCX o Why MCX o Demerits o Differences o Conclusion

O Introduction o Trading at MCX o Why MCX o Demerits o Differences o Conclusion

Embed Size (px)

Citation preview

oIntroductiono Trading at MCXo Why MCXo Demeritso Differenceso Conclusion

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”

o Introduction

oTrading at MCXo Why MCXo Demeritso Differenceso Conclusion

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

o Introductiono Trading at MCX

oWhy MCXo Demeritso Differenceso Conclusion

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

o Introductiono Trading at MCXo Why MCX

oDemeritso Differenceso Conclusion

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

o Introductiono Trading at MCXo Why MCXo Demerits

oDifferenceso Conclusion

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

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

Credits Credits Sonam Shetty 51

Rahul Chandalia 72

Sanam Shah 108

Bhavin Udani 115