how to trade in ncdex ?

sumantra

Active Member
#1
i am a newbie in ncdex and bought a lot of wheat @1545.
can anyone guide me how to trade in ncdex ?
although i have came to know from ncfm module that trading can be done simultaneously in spot and futures but my broker said spot is recently closed and trading is done only in futures.
what can i do ?
 
#2
welcome to ncdex :thumb:

as u bought wheat u already enter in the trade:)

as u want to trade in spot means physical trading...for that just told ur broker to
take delivery of wheat u bought
 

sumantra

Active Member
#3
i want to sell spot to hedge my position. but my broker (rk global) said that they are unaware about trade in nspot . so they squared off my position on 12-05-14 without my consent and convinced me that ncdex told them to transform the positions within 10 to 12 every month, although i wanted to sell my carry forward position 1 day before expiry date (20-05-14).
i was fully unaware of such "embarassing" reason.
ultimately i have lost 2500/- profit and have to pleased with a meagre 900/- profit.
do anyone know such kind of new rules formulated by ncdex ?
 
#4
i want to sell spot to hedge my position. but my broker (rk global) said that they are unaware about trade in nspot . so they squared off my position on 12-05-14 without my consent and convinced me that ncdex told them to transform the positions within 10 to 12 every month, although i wanted to sell my carry forward position 1 day before expiry date (20-05-14).
i was fully unaware of such "embarassing" reason.
ultimately i have lost 2500/- profit and have to pleased with a meagre 900/- profit.
do anyone know such kind of new rules formulated by ncdex ?
Yes he is right but should better if he get ur consent...
 
#5
First you should know More About NCDEX market trading, I suggest to you visit NCDEX main website NCDEX.com or get there "Frequently Asked Questions of Ncdex"
 
#6
i want to sell spot to hedge my position. but my broker (rk global) said that they are unaware about trade in nspot . so they squared off my position on 12-05-14 without my consent and convinced me that ncdex told them to transform the positions within 10 to 12 every month, although i wanted to sell my carry forward position 1 day before expiry date (20-05-14).
i was fully unaware of such "embarassing" reason.
ultimately i have lost 2500/- profit and have to pleased with a meagre 900/- profit.
do anyone know such kind of new rules formulated by ncdex ?
If broker takes decisions in your trading without letting you know it is clear and evident sign of scam. It'd better to withdraw your money ASAP and try reputable one Hotforex or Alpari..
 
#7
Answer: National Commodities And Derivatives Exchange.India's largest and most recognized commodities exchange, which was established in 2003. The exchange was founded by some of India's leading financial institutions such as ICICI Bank Limited, the National Stock Exchange of India and the National Bank for Agricultural and Rural Development, among others.he exchange is located in Mumbai, but has offices across the country to facilitate trade. Trading is done on 45 commodities that are integral to India's economy. These include gold, silver, Brent Crude oil, and rice, along with other agricultural products and base metals.

More and more stock brokers are setting up commodity brokerages as well, and trading volumes in commodity futures is widely predicted to rival the volume of derivative transactions (futures and options) on the stock exchanges.
When you buy a Gold Futures contract, you undertake to do three things.

1. Buy the amount of gold specified in the contract.

2. Buy it at the price specified in the contract.

3. Buy it on the expiry of the contract. This could be after one month, two months, three months and so on. Of course, if you sell the Gold Futures contract before it expires, then you don't have to worry about actually buying the gold.

Let's say you buy the Gold Future contract at say Rs 7,200 per 10 gm.

Your hunch comes true and the gold prices rally to Rs 8,000 per 10 gm.

You can sell the Gold Futures any time before expiry of the contract.

Gold and other commodity futures prices are quoted on the commodity exchanges in exactly the same way in which stock prices or stock futures prices are quoted on a daily basis in the stock markets.

How it works

Just like stock futures (Read How to trade in Futures to understand how futures work).

When you buy a Futures, you don't have to pay the entire amount, just a fixed percentage of the cost. This is known as the margin.

Let's say you are buying a Gold Futures contract. The minimum contract size for a gold future is 100 gms. 100 gms of gold may be worth Rs 72,000.

The margin for gold set by MCX is 3.5%. So you only end up paying Rs 2,520.

The low margin means that you can buy futures representing a large amount of gold by paying only a fraction of the price.

So you bought the Gold Futures contract when it was Rs 72,000 per 100 gms.

The next day, the price of gold rose to Rs 73,000 per 100 gms.
Rs 1,000 (Rs 73,000 – Rs 72,000) will be credited to your account.

The following day, the price dips to Rs 72,500.
Rs 500 will get debited from your account (Rs 73,000 - Rs 72,500).
One should go into the commodities trading exchange - NCDEX and MCX - to see which commodities are offered for trading, their contract size and other criteria. You will have to get hold of a commodities broker but that should not be a problem. There are lots of brokers that offer commodity trading these days.

But, it would be wise to avoid commodity trading if you are a rookie. A better move would be to initially trade in stock futures before opting for commodity futures.

One can go on this link for online updated price list and exchange rates:

http://www.ncdex.com/HomeAction_input.action
 

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