MCX Trading - Products, Benefits & Risks

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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.

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?

METAL	BULLION
Aluminium, Copper, Lead, Nickel, Steel Long (Bhavnagar), Steel Long (Govindgarh), Steel Flat, Tin, Zinc	Gold, 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, Jute	Brent 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, Coriander	Arecanut, Cashew Kernel, Coffee (Robusta), Rubber
PULSES	PETROCHEMICALS
Chana, Masur, Yellow Peas, Tur, Urad	HDPE, 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, Wheat	Guargum, 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).

Home Equity Loans - Types, Benefits and Risks

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What are Home-Equity loans?

Home Equity Loans lets homeowners borrow money by leveraging the equity in their homes. The loan is based on the difference between the homeowner's equity and the home's current market value. It is also know as second mortgage.




Types of home equity loans?

There are 2 types of equity loans

1. Fixed-rate loans (provide a single, lump-sum payment to the borrower, which is repaid over the given period of time at an agreed-upon interest rate) and
2. Lines of credit (Borrowers are pre-approved for a certain spending limit and can withdraw money when they need it via a credit card or special checks.

Monthly payments vary based on the amount of money borrowed and the current interest rate) & both are available with terms that generally range from 5 to 15 years.

Benefits of home equity loans?

• Easy source of cash,
• Interest paid on a home-equity loan is also tax deductible;
• A lower interest rate,
• Lender gets more interest & fee & also repossess the property, 
• Sell it again and restart the cycle with the next borrower,

Risks of home equity loans?

• Interest rate risk
•  Ease of Spending

Interest rates of home equity loans?

Various from place to place city to city.

Option Trading Stratagies & Tactics

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What is Option Trading?

Option Trading basically carried out in derivative segment of stock market. Option trading means buying & selling of stock option contracts.

Option Trading System?

Option trader make profit when the option contract price rises then what they brought by selling the option contract. Option trader can be either option seller or option buyer.

Put and call in Option Trading? 

Call option means to buy the stock at a quoted price within the given time, in this one has to pay the premium price of the contract to the option writers, put option means to sell the stock contract at a quoted price within the given time frame.

Software's for option trading?

Binary option software, eSignal Software-easy-to-use platform with connections to multiple options brokers – the best combination of decision support and trade execution you can find OptionVue 7- analytics, it integrates real-time quotes, charting, portfolio management and more.

Benefits and risks of Option trading:

Benefits

Versatility i.e to adjust according to ups & downs of the market, huge returns, lower deposits to trade in option trading, lower deposits to trade in option trading, flexibility.

Risks

Option trading can be speculative in nature and carry substantial risk of loss, option trading involves risk, should know how option trading works, pay the premium price to the writer of the option contract. 

Day Trading - Is it the best way book huge Profits??

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What is Day trading?

Day Trading means where trading of financial instrument (either cash or equivalent to cash) takes place on the same day before the market close for trade, it is also know as intraday trade. Trader who does day trading is known as Day trader.

Typical Intraday Chart

 
How to do Day Trading?

To do Day Trading, One need to know liquidity and volatility. Liquidity allows you to enter and exit a stock at a good price. Volatility is simply a measure of the expected daily price range - the range in which a day trader operates. More volatility means greater profit or loss, professional software platform ensure that real-time news and data feeds are included, good understanding of the charts used.

Benefits and Risks of day trading?

Benefits of Day Trading:

• Less risk (as you have control on money involve / invested,), 
• Home based trading, 
• Avoids over night risk,
• Learning,
• Increases leverage

Day Trading Risks:

• Trader most of the time keep observing the stock & not invest ,
•  Suffers loss for initial phases, 
• Time consuming activity, 
• Depends on borrowed stock

How to make most out of day trading?

Define your financial goals, amount of risk you are willing and financially able to take, need to know liquidity and volatility, should have good understanding about the stock in which you are trading, should be strategic, active & keen observer.

Things to know before doing a day trade?

 Trading vs investment, should understand it a gambling, Use of limit order, Selling span, 

10 Must have Qualities to become a successful Day Trader 

To be a successful Day Trader one must have the following qualities:

1. Flexibility
2. Self Control
3. Responsible
4. Discipline
5. Accept Losses
6. Observer
7. Confidence
8. Concentration
9. Patience
10. Good Learner

5 Mistake Most of the Day Traders Make

1. Entering day trading without any guidance, Holding stocks without selling.
2. Starting day trading without proper knowledge about the market.
3. Not keeping enough funds for Risk Capital.
4. Trading without Plans
5. Trading without market analysis and without Self Assessment.

Through Day Trading / Intraday Trading one can book huge profits but one must keep in mind that share trading / share marketing involves risk. Thorough understanding of the market is required in order to get profit.

Happy Trading....

All about Forex Trading Online

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What is Forex Trading?

Forex (foreign exchange or currency market) its the place where currency is traded. In today's world currency plays every important role hence currency need to be exchanged to conduct foreign trade & business. Eg India is famous for handy crafts & if you are living in France then you need to pay in rupees.That mean France importer has to exchange equivalent amount of euros into rupees. 

Why one should do Forex Trading?

Forex Trading is the most liquid financial market in the world, huge volumes are traded, its done electronically ie, over the counter ( OTC) which means all transactions occur via computer networks between traders around the world, rather than on one centralized exchange, it operates 24 *7, use of leverage (any technique to multiply gains and losses) to enhance profit and loss margins and with respect to account size.

Benefits of Online Forex Trading?
Benefits of online Forex Trading includes:

1. 24/7 Trading
2. Ease
3. Accessibility
4. Leverage
5. Profit in Falling Markets
6. Low Cost

Risks Involved in Online Forex Trading?

The risks involved in online forex trading are due to difference in retail & whole sale price, unstability, risk of uncertainity. Forex Trading requires experience & Time (Without completely knowing the market’s rules and without having patience, your investment might very well soon vanish).

How to Do Forex Trading Online?
Online FOREX trading has unlimited upside potential. FOREX can provide investors with enormous gains relative to capital invested although the risk undertaken is huge. Most of the electronic platforms that are currently available on the Web encompass market-making and risk-management technologies to minimize spread increases and maximize profit potential. Moreover, the FOREX market is so huge that it is impossible to be influenced for own gain.

The most commonly traded currencies are the US Dollar (USD), the EURO (EUR), the Japanese Yen (JPY) and the British Pound ( GBP ) and a series of smaller currencies including the Swiss Franc (CHF), the Australian Dollar ( AUD ), and the Canadian Dollar (CAD). Normally, there are open positions for the major currency pairs which are USD/JPY, USD/CHF, USD/CAD, EUR/USD, EUR/CHF, EUR/ GBP , EUR/JPY, EUR/ AUD , AUD /USD, AUD /JPY, GBP /USD, GBP /JPY, and GBP /CHF.

Best time to Trade Forex Trading Online?

Best time to do Forex Trading is the Power Hours. The Power hours are 8am-12pm EST, US session runs from 8am-5pm, European session runs from 2am-12pm. Most active Trading period last for only four hours everyday.

Key Success Tips on Forex Trading Online

 If you want to book  huge profit, you should have:

1. Good knowledge about Forex trading,
2. Right selection of froex broker, 
3. Selection of the currency to be traded,
4. Proper stragery to be used while investing in Forex trading. 

Good Luck...Happy Trading.