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

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Presentation transcript:

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

Aluminium(1kg)  Cashewkern(1kg)  Coffeerob(100kgs)  Copper(1kg)  Crude oil(1 bbl)  Furnace oil(1000kgs)  Gold(10gms)  Jute(100kgs)  Silver(1kg)  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”

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

Aluminium(1kg)  Cashewkern(1kg)  Coffeerob(100kgs)  Copper(1kg)  Crude oil(1 bbl)  Furnace oil(1000kgs)  Gold(10gms)  Jute(100kgs)  Silver(1kg)  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

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

Aluminium(1kg)  Cashewkern(1kg)  Coffeerob(100kgs)  Copper(1kg)  Crude oil(1 bbl)  Furnace oil(1000kgs)  Gold(10gms)  Jute(100kgs)  Silver(1kg)  Why MCX o Leverage o Commission costs o Liquidity o Ability to go short o Reduced Risks

Aluminium(1kg)  Cashewkern(1kg)  Coffeerob(100kgs)  Copper(1kg)  Crude oil(1 bbl)  Furnace oil(1000kgs)  Gold(10gms)  Jute(100kgs)  Silver(1kg)  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

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

Aluminium(1kg)  Cashewkern(1kg)  Coffeerob(100kgs)  Copper(1kg)  Crude oil(1 bbl)  Furnace oil(1000kgs)  Gold(10gms)  Jute(100kgs)  Silver(1kg)  Demerits o Leverage o Speed of trading o Poor supervision o Huge volatility & uncertainty

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

Aluminium(1kg)  Cashewkern(1kg)  Coffeerob(100kgs)  Copper(1kg)  Crude oil(1 bbl)  Furnace oil(1000kgs)  Gold(10gms)  Jute(100kgs)  Silver(1kg)  Differences Commodity derivativesFinancial derivatives Settled by actual deliveriesCash settled Quantity and quality differences existNo such differences exist Holding cost includes assaying, warehousing & insurance costs Holding costs normally consists of only interest costs Seasonal in natureActive 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)  Cashewkern(1kg)  Coffeerob(100kgs)  Copper(1kg)  Crude oil(1 bbl)  Furnace oil(1000kgs)  Gold(10gms)  Jute(100kgs)  Silver(1kg)  Credits Sonam Shetty51 Rahul Chandalia72 Sanam Shah108 Bhavin Udani115