Can MCX commodities be traded in weights instead of lots? e.g. We trade in 100 units of crude lot…if I want to trade in 1 or 15 units of crude is that possible?? In addition My MCX login in zerodha web gives me lots & weights as option, what does that mean??
Can MCX commodities be traded in weights instead of lots? e.g. We trade in 100 units of crude lot...if I want to trade in 1 or 15 units of crude is that possible??
No. there is minimum quantity and its multiples stipulated by the Exchange that can be traded.
In addition My MCX login in zerodha web gives me lots & weights as option, what does that mean??
probably to let you know the weight you buy in a particular lot
All futures contracts on exchanges across the world are traded by a defined lot size. You cannot trade them in parts, although you can buy more than 1. MCX shows you an option to choose Lots/Weights so you can know how much of that commodity you're acquiring or selling per lot. For example, you may not be aware of how much a lot of Gold actually is. It could be 100 grams or 1 KG. It's always good to know how much quantity you're dealing with so you can view the weight of each commodity on the SPAN Margin Report or you can load by Weights to get an idea of how much each lot weighs.
If you load by Lots you can see how many you're buying, and if you load by Weights you can see how much you're buying.
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