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oIntroduction
o Trading at MCX
o Why MCX
o Demerits
o Differences
o Conclusion
Introduction
o A nationwide online multi commodity market
place
o An independent and demutualised exchange
o Promoted by Financial Technologies Limited
o Formulated strategic alliances with leading
commodity trade associations in India
o Poised to emerge as “exchange of choice”
Aluminium(1kg) 117.95
Cashewkern(1kg) 265.00
Coffeerob(100kgs) 99943.00
o Introduction
oTrading at MCX
o Why MCX
o Demerits
o Differences
o Conclusion
Trading at MCX
o Trading days and hours
o Exchange members & authorized users are
entitled to trade
o Clearing the Trades on MCX
o Process of settlement and delivery
o Physical delivery in the warehouse
o Role of a Warehouse in Futures Market
Aluminium(1kg) 117.95
Cashewkern(1kg) 265.00
Coffeerob(100kgs) 99943.00
o Introduction
o Trading at MCX
oWhy MCX
o Demerits
o Differences
o Conclusion
Why MCX
o Leverage
o Commission costs
o Liquidity
o Ability to go short
o Reduced Risks
Aluminium(1kg) 117.95
Cashewkern(1kg) 265.00
Coffeerob(100kgs) 99943.00
Why MCX
o Diversification
o Helps to Fix Price Easily
o No transportation charges
o 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
o Introduction
o Trading at MCX
o Why MCX
oDemerits
o Differences
o Conclusion
Demerits
o Leverage
o Speed of trading
o Poor supervision
o Huge volatility & uncertainty
Aluminium(1kg) 117.95
Cashewkern(1kg) 265.00
Coffeerob(100kgs) 99943.00
o Introduction
o Trading at MCX
o Why MCX
o Demerits
oDifferences
o Conclusion
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
Credits
Sonam Shetty
51
Rahul Chandalia
72
Sanam Shah
108
Bhavin Udani
115
Aluminium(1kg) 117.95
Cashewkern(1kg) 265.00
Coffeerob(100kgs) 99943.00