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Tuesday, December 31, 2013

MCX Trading - Products, Benefits & Risks


What is MCX Trading?

Multi Commodity Exchange (MCX), it’s a commodity exchange of India where trading take place in bullion, ferrous and non-ferrous metals, energy, and a number of agricultural commodities.

tradin mcx


MCX Trading timings?
  • Special Session:
Monday to Saturday: 9:45 a.m. to 9:59 a.m.
Special Session (order cancellation session) is held to cancel the pending orders prior to opening of market
  • Normal Session:
Monday through Friday: 10:00 a.m. to 5:00 p.m. ( all commodities)

Monday through Friday: 5:00pm to 11:30/11:55 pm (all commodities except agri commodities)
Saturdays: 10:00 a.m. to 2:00 p.m.

Agri-commodities are available for futures trading up to 5:00 p.m. whereas non agri-commodities (bullions, metals, energy products) are available up to 11:30 pm / 11.55pm.

What are MCX products?

METALBULLION
Aluminium, Copper, Lead, Nickel, Steel Long (Bhavnagar), Steel Long (Govindgarh), Steel Flat, Tin, ZincGold, Gold HNI, Gold M, i-gold, Silver, Silver HNI, Silver M, Silver Micro
FIBER
ENERGY
Cotton L Staple, Cotton M Staple, Cotton S Staple, Cotton Yarn, Kapas, JuteBrent Crude Oil, Crude Oil, Furnace Oil, Natural Gas, M. E. Sour Crude Oil, ATF, Electricity(Now delisted), Carbon Credit
SPICES
PLANTATIONS
Cardamom, Jeera, Pepper, Red Chilli, Turmeric, Cumin Seed, CorianderArecanut, Cashew Kernel, Coffee (Robusta), Rubber
PULSES
PETROCHEMICALS
Chana, Masur, Yellow Peas, Tur, UradHDPE, Polypropylene(PP), PVC
OIL & OIL SEEDS
Castor Oil, Castor Seeds, Coconut Cake, Coconut Oil, Cotton Seed, Crude Palm Oil, Groundnut Oil, Kapasia Khalli, Mustard Oil, Mustard Seed (Jaipur), Mustard Seed (Sirsa), RBD Palmolein, Refined Soy Oil, Refined Sunflower Oil, Rice Bran DOC, Rice Bran Refined Oil, Sesame Seed, Soymeal, Soy Bean, Soy Seeds
CEREALS
OTHERS
Maize, Barley, Rice, Sharbati Rice, Basmati Rice, WheatGuargum, Guar Seed, Gurchaku, Mentha Oil, Potato (Agra), Potato (Tarkeshwar)


Benefits of MCX Trading
  1. Capital growth,
  2.  Visibility,
  3.  Liquidity, 
  4. Avoid the effects of fluctuations in prices for producers who, because of their limited production volume or seasonal factors, are not able to spread out their sales over the year, or for consumers who, because of their limited size, cannot spread out their purchases,
  5. Protect the value of inventories, or partly finance the cost of storage;Secure a processing margin;
  6. Lock-in future prices at an attractive level;
  7. Improve marketing policies and
  8. Financial planning and forecasting.
Risks of MCX Trading?
  • Its not a market for people with limited investment,
  • Low trading experience and low risk tolerance, 
  • No guarantee of profit
Regulators of MCX

SEBI, Forward Contracts Regulation Act, 1952 (FCRA, 1952).