Basic queries for commodities market

General
1

Hi

Am exploring commodities market and had few basic questions:

  1. Is MCX the only exchange for commodities trading?
  2. Read that agri-commodities are traded till 5.30 pm and remaining till 11.30 pm. I checked final OHLC price for COTTON on 22 June at 9.30 pm IST, but I could see only latest OHLC for 21 June and not 22 June. (I checked in bhav copy section). When does today’s final OHLC get updated ?
  3. In stock futures, last Thursday of every month is expiry date. How does expiry work in Commodities?
  4. How many months in commodities? e.g in stock futures we get near, mid, far
  5. Had read somewhere that options in commodities have been introduced. But I did not see any option quotes in MCX website. Is it going to be introduced at a later date?
  6. Is there a spot market that is available for trading in commodities? or only futures?
  7. Are there 22 commodities available for trading or more ? I just checked bhav copy for June Futures.
  8. How does commodities futures work. Suppose if I buy 1 lot of cotton then for every 1 point move in futures, P&L moves by 25 Rs ? since 1 lot is 25 bales ?
2

That is a long list :slight_smile:

  1. NCDEX is the other one.
  2. Bhavcopy updates after market closing. You can check this: https://www.mcxindia.com/market-data/market-watch
  3. It varies based on contracts. Check this.
  4. Depends on contracts, check the link above.
  5. Not yet, they are saying end of July 2017
  6. Only futures
  7. Don’t know the exact, but if Bhavcopy says, that will be right.
  8. Visit https://zerodha.com/brokerage-calculator and click on commodities. Choose the contract, you will see the P&L for every point move.
1 Like
3

I guess you have been downloading bhav copy from MCX website… if so a lot of your queries have answer there itself…
MCX is not the only commodity exchange…there is NCDEX too which deals exclusivey in Agri commodities

Use the Zerodha brokerage calculator to know the p&l per tick…or u can download the brochure for each commodity from the MCX website.

And plz do go through the commodity module of Zerodha varsity

Options in gold has and one or two other commodities has been approved by SEBI but hasn’t been rolled out by the exchanges…expect them any time.

As far as I know trading is allowed only in futures

Hmm…nithin beat me in answering by 1 min

1 Like
4

Thanks Nithin :slight_smile: As per the MCX webiste agri commodities trading closes at 5.30 pm, and even at 9.30 pm, the bhav copy for 22 June was not updated. Is there an excat time when you say " after market closing" ?

5

Last time I had checked it was not there, its there now :smiley:. Will definately go through it. Varsity generally answers all my questions. Thanks for pointing it out.

6

As per the new update, if we do not have sufficient balance in our accounts to take the delivery of F&O contracts which are not squared off on expiry, then what is the implication?