Commodities Newbie Here

#11
Commodities do have Index, but they are not meant for trading.

So first you must have a fair idea of the major groups traded on MCX.

Base Metals: Lead, Zinc, Aluminum, Copper, Nickel.
Energy: Crude Oil, Natural Gas.
Bullion: Gold, Silver.

My criteria to trade is liquidity and swings/trend. So my personal favorites are Gold, crude and n.g and lead. Good thing to be on MCX is that you can actually connect fundamentals more comfortably and with ease in comparison to stocks. Technicals work great here(liquidity being the major factor), and trend in commodities are cyclical so its a best place to make money if you have experience and money to exploit that cycle.
1.In order to access all the commodities we have to have account on both MCX and NCDEX..right?

2.Please tell me where can I have long term charts of commodities and currency...

Thank you for all your answers.

Now can I start to bug you about the currency segment? :D
 

ashu1234

Well-Known Member
#12
1.In order to access all the commodities we have to have account on both MCX and NCDEX..right?

2.Please tell me where can I have long term charts of commodities and currency...

Thank you for all your answers.

Now can I start to bug you about the currency segment? :D
Have a account at MCX for commodities, no need to venture in NCDEX as its all agri based (totally speculative market) and for currencies NSE is best.

Yes sure, you can bug me :D.
 
#13
Please see the attached image and reply the following:-

1.What is (1) 10YGS7 and (2)91DTB ?

2.Why are there so many sub categories of EURINR,each with different price levels (contract numbers ranging from 201306 to 201405)?This is true not only for EURINR but for all other currency pairs as well. What are these?


3. You missed to reply where can I find long term charts of Currency and Commodities:D
 
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ashu1234

Well-Known Member
#14
That are debt instruments, 91 days govt treasury bills, and 10 Year Notional Coupon-bearing Government of India.
The numbers that you are getting after EURINR are the expiry dates of the contract, so they go all the way to year 2014.
Go to investing.com you can find some free charts there but not all.
 
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#16
Hi,
Simple way to understand is margin for most of the contract traded are around 5%. So Crude is trading @ CMP 5685 and its lot size is 100, so total value of contract is 568500, so at 5% margin it comes to 28425 Rs.
This 28425 is for delivery..right?

For intraday, it is 28425 divided by 2 = 14212.5..correct?
 

ashu1234

Well-Known Member
#17
This 28425 is for delivery..right?

For intraday, it is 28425 divided by 2 = 14212.5..correct?
Right. For intraday you can have leverage upto 5 times. So your calculations are right.

I don't trade in debt instruments, I also don't trade in currencies now but I have to keep track because all commodities are valued in dollars so for trading we have to convert it to INR by multiplying it with current rates.
 
#18
Right. For intraday you can have leverage upto 5 times. So your calculations are right.

Pardon me but I cannot understand how 14212.5 is the result of 5 times leverage.

As per your original calculation, you told "Simple way to understand is margin for most of the contract traded are around 5%. So Crude is trading @ CMP 5685 and its lot size is 100, so total value of contract is 568500"

So isn't 5 times leverage supposed to be 568500/5 =113700 ?

Please correct me if I am wrong


Lastly,in CDS, 201306 means June of 2013..right?
 

ashu1234

Well-Known Member
#19
Yes CDS 201306 means June.

Here goes the calculation.
Crude margin is 5%, so for to carry we have to pay: 28425.

Now for intraday at 2 times leverage margin comes to: 28425/2=14212.5
similarly at 5 times leverage margin comes to: 28425/5=5685.

So if you are new customer they'll give you 2 times margin to trade intraday.
If you are old and good brokerage generating customer they might give you 5 times leverage, so it depends.
 
#20
Please look into the 2 attachments. They are the screenshots taken after the CDS mkt closed, i.e, after 5 PM.

I am surprised to see that the LTPs for the 4 currency pairs (closing prices in this case) doesn't match for zerodha and Indiainfoline.

Can you explain the discrepancy?
Also, please tell me who is correct? zerodha or IIFL?
 

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