Commodities: NRML vs MIS, etc

Zerodha
1

I’m new to commodities trading so I’ve these basic (and stupid as well :slight_smile: ) questions (pardon me if they are already discussed and explained, I couldn’t find them so posting here):

If I trade a future commodity say “xxx NOV FUT” which expires in Nov, then:

  1. Is there any difference in charges between MIS and NRML? On Zerodha.com/charges I couldn’t find this differentiation, so I’m assuming that the charges are the same. In case of equities, MIS transactions have lesser charges compared to CNC, is it similar in case of commodities (i.e., MIS < NRML)?
  2. If I select NRML then whether I sell it today (intraday) or anytime before the Nov future expiry date, is the charge same? Any obligation?
  3. In case of equities, there are conditions like T+1, T+2, short selling, etc. Is there anything like that in case of futures commodities?
  4. When people say they are trading with silver commodity, for example, what symbols do they use? Will they pick something like “SILVER DEC FUT” or is there any symbol that’s alive forever (like just “SILVER”)?
2

Hi @PrashDn

  1. there’s no difference in brokerage charges between MIS or NRML. what makes the difference is if you choose MIS you will be getting 2x leverage whereas if you choose NRML no leverage is provided.
  2. yes as I mentioned same charges are applicable.
  3. commodity trading is contract based trades so you don’t get any shares so as of expiry its get settled.
  4. As commodity trading is contract based so they mention the contract month for more convenient.
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3

F&O trades are cash settled. So there is no concept of T1, T2 when you trade futures because there is no delivery of futures contracts taking place. There is only cash settlement taking place.

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