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Queries
1. MCX Commodities Exchange Types of Contracts that can be traded.
Research & Analysis
1.1 In the Commodity futures contract the underlying asset however would be a commodity like gold
or silver. In India, Commodity futures are mainly traded in two exchanges
1. MCX (Multi commodity exchange)
2. NCDEX (National commodities and derivatives exchange).
Unlike stock market futures where a lot of parameters are measured, the commodity market is
predominantly driven by demand and supply.
MCX offers trading in varied commodity futures contracts across segments including bullion, ferrous
and non-ferrous metals, energy and agricultural commodities. The Exchange focuses on providing
commodity value chain participants with neutral, secure and transparent trade mechanisms, and
formulating quality parameters and trade regulations, in conformity with the regulatory framework.
Each of the futures contracts is active for a specific amount of time, during which it can be traded,
and the contract then expires, and can not be traded any more. The date upon which a futures
contract expires is known as its Contract Expiration Date, and the expiration dates are fixed for each
futures market by the exchange that provides the market. Here we have list of all Mcx Commodity
Contract Expiration Data.
In finance, a futures contract (more colloquially, futures) is a standardized contract between two
parties to buy or sell a specified asset of standardized quantity and quality for a price agreed upon
today (the futures price) with delivery and payment occurring at a specified future date, the delivery
date, making it a derivative product (i.e. a financial product that is derived from an underlying
asset). The contracts are negotiated at a futures exchange, which acts as an intermediary between
buyer and seller. A closely related contract is a forward contract. A forward is like a futures in that it
specifies the exchange of goods for a specified price at a specified future date. 1

1 (http://mcx.freetips.tips/mcx-commodity-expiry-future-contract-expiration-date/)

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1.2 The following are the types of Future Contracts with delivery options available as under, that can
be traded on MCX2:
a. Compulsory: In Compulsory delivery contract, all open interest position of the Members at expiry
of the contract result into deliverable obligations. Though the intention to give/take delivery is not
mandatory in such contracts, the Seller Member, if so desires, can submit intention to give the
delivery along with duly endorsed warehouse receipt and valid quality certificate.
b. Seller Option: Delivery in seller option contract is based on sellers choice on expiry of the contract.
If the Seller Member gives valid intention to give delivery within the stipulated time limit as
provided in the relevant contract, the Exchange will allocate the delivery to the Buyer Member. Rest
of the open positions on expiry of the contract, not settled by way of delivery, get closed out at the
Due Date Rate
c. Both Option: When intentions of both Buyer and Seller Member to give/take delivery match on or
before the expiry of the contract, then the delivery takes place to the extent of matched quantity on
expiry of the contract. If the intention is received from only one party, then delivery does not take
place and all open interest position of the Members get closed out at DDR (Due date rate).

1.3 The Following are the types Commodity Contracts available for Trading on MCX:
METAL

BULLION

Aluminium, Aluminium Mini, Copper, Copper Mini, Lead,

Gold, Gold M, Gold Guinea, Gold

Lead Mini, Nickel, Nickel Mini, Zinc, Zinc Mini

Petal, Silver, Silver M, Silver Micro

AGRICULTURE

ENERGY

Cardamom, Cotton, Crude Palm Oil, Kapas, Kapasia Brent Crude Oil, Crude Oil, Natural
Khali, Mentha Oil

Gas

2 (http://www.mcxindia.com/marketoperation/delivery/PDF/faq/FAQ.pdf)

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