commodity trading

I have few queries on commodity trading. I have searched google and did not find answers to my queries.....posting in this beginner's thread ...Can anyone please take a look at it and reply.

Thanks in Advance.

Q1:
see this quote below. Can I infer minimum Gold buy size is 10 Gram i.e 1 lot = 10 gm ?



Nope that means Rate is of 10 Grms but lot size is One Grms 100Grms and One Kg
Q2: What does Volume means in this quote . Can I assume 1,945 x 10 gm Gold contract has been traded today ?


1945*100gm
Q3: If I buy 10 gm how much I need to pay upfront initial margin ? is it Last Trading Price or (15 % * Last Trading Price ) ?

If you want to buy 10gm you have to buy 10Petals and have to pay 3210*10=32100*7%=approx 2250
Q4: I read precious metals / Energy commodities are traded till night i.e from 10.00 AM to 11.30 PM and also on Saturday 10 - 2 PM ....Is this true ? I'm not sure exchanges are open so late night.
[/Q

Yes mcx trade at that time and commodities mkts run 24*6 whole world so if you start trading keep this in mind that position can reverse in the morning if ant problem happen anywhere in the world:thumb:

Thanks for the tip.


Hi praveen,

Thanks for the post. I need some clarification on your comments. my comments are in pink in the above

http://www.mcxindia.com/Uploads/Products/3/Gold February 2013 Contract Onwards.pdf

[ this will clear ur confusion also. never do any half attempted research]

for further research
http://www.mcxindia.com/SitePages/ContractSpecification.aspx?ProductCode=GOLD_M

[ search here and u will get all the product specification - just go thru the products]

Have looked at the pdf.

I see it has been mentioned there
Maximum Order Size = 10 Kg.

There is no Minimum Order Size mentioned in GOLD contract....Am I missing something ?


the reason I'm asking is ...by looking at the GOLD quote ...I am unable to understand what is the minimum amount I'm allowed to purchase .

[ I am not talking about GOLD Petals, GOLD guinea , GOLD Delhi , GOLD Ahm etc ...I am talking about only GOLD symbol ]


Other interesting thing I found in that GOLD pdf is ...it says "Ex-Ahmedabad"....Now when I say GOLD quote ....does it refer to the national level GOLD quote ? .... "Ex-Ahmedabad" is foggy.

its delivery centre - Ahmadabad and Mumbai - i think its not foggy -

hope that u get ur answer
sr

OK. Thanks. I feel comfortable now.

I guess the quote I posted has the following meaning (Please correct me if I am wrong)

I am allowed to buy minimum size i.e 1 kg of GOLD ....or multiples like 2kg , 3kg , 4kg , 5kg , 6kg , 7kg , 8kg , 9kg and 10 kg ....not more than 10kg

This GOLD has rate 10 gm = 31875.00 Rs. (LTP)

Today this GOLD has been traded and its volume = 1945 x 1 kg = 1945 kg contracts

This is the information I can infer from the Quote.



Now as a trader if I buy minimum size i.e 1 kg Gold ....its lot value is 100 x 31875.00 = 3187500 Rs.

However I don't have to pay full money to acquire position . only I have to pay 5% as Initial Margin...this means I need to pay 3187500 * 5% = 159375 Rs


Hope I'm correct.


Now IF someone still find 1kg of GOLD expensive ....there are other choices one can look at ..like GOLD Petals where lots size is bit smaller and bit cheaper to acquire buy position.


N.B: I'm looking at motilal oswal website for Quotes . and I have downloaded margin excel from indiabull website.