What is MCX Trading
MCX is to commodity trading what BSE/NSE is to stock trading. MCX is the abbreviated form of Multi Commodity Exchange, which started its operations in the year 2003 in India. MCX Trading deals with trading of a wide range of commodities such as silver, gold, copper, lead, crude oil, agricultural commodities, spices, etc. The MCX trading platform is India’s biggest commodity futures exchange.
Trading (buying as well as selling of commodities) that takes place on MCX is known as MCX Trading.
What is Futures Transaction
Futures are a type of financial contract wherein the buyer and seller are obligated to honor their part of the agreement, at a pre-determined price and a pre-determined time period. A commodity future transaction is an agreement to purchase or sell a pre-determined amount of commodity on a fixed future date at a fixed price. Commodity futures are a kind of derivative and are generally used as a hedge or take a protection position in the chosen underlying asset.
Types of Commodities:
In MCX trading,commodities can be divided into two categories – Hard commodities and soft commodities.
- Hard Commodities :These are essentially natural resources that need to be mined or extracted. key characteristics of hard commodities is their ease of storage and indifference to climatic conditions. Rather they are impacted by factors such as global economic conditions, industrial demand or production, etc. Examples of hard commodities include rubber, gold, crude oil, etc.
- Soft Commodities :Agricultural products are classified as soft commodities. The prices of these commodities is heavily influenced by changes in climatic or weather conditions. Examples of soft commodities include wheat, corn, soybean, coffee, sugar, cocoa, pepper, etc.
Why Invest with Trade Smart Online
Choosing the right investment platform plays a crucial role in the success and profitability of your investment. We at Trade Smart Online have a rich experience of more than two decades in the brokerage business and are equipped with the right resources (human capital, technology and market knowledge) to help you optimize your ROI. Moreover, our values of trust and transparency (derived from our parent organization – VNS Finance) will give you the much needed peace of mind while trusting your hard-earned money with us. Here are some reasons why you should invest with us.
We employ cutting-edge technology in all our processes to enhance user experience and stay ahead of the curve. For instance,MCX Robot trading software or Algo trading have alleviated the customer experience to an unparalleled level.
- On-the-go trade
Trading with us gives you the freedom to trade on the move. MCX Virtual trading allows you to access trading services from multiple platforms such as mobile, desktop, web, etc.
- Continuous support
We are committed to support our customers through each and every step of their trading journey. Our team (consisting of more than 100 members) is available through multiple mediums (call, chat and email) to guide customers and resolve their queries.
- Cost efficiency
We strive to give the highest output with the least input. Our technological and market strength enables us to bring down the transaction and brokerage costs, bringing more money in your wallet!
We pride ourselves in offering something for everyone. Our flexible and diversified pricing plans cater to a wide range of investors, irrespective of their trading needs.
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MCX trading falls under the overview of SEBI (Securities and Exchange Board of India). Till the year 2015, it was regulated by Forward Market Commission.
MCX trading takes place between 9am IST and 11.30pm IST (Monday to Friday). The end time is changed to 11.55pm to account for daylight savings, usually between the months of November and March.
Trading of any can be an overwhelming experience, especially for new investors. Here are some points to keep in mind while going for MCX trading.
- Patience is key. It will help you remain grounded and refrain from making rash or panic-based decisions.
- Every investment has associated risks. Understand the risks in MCX trading before starting your trading journey.
- Diversification is a must. Do not keeps all your eggs in one or related commodities.
- Slow and steady wins the race. Gain thorough understanding of the market before you make big commitments. It is a wise decision to take the help of an expert rather than depending on recommendations by friends or colleagues.
- Stay abreast with market developments, global situations, etc. These will hone your investment strategies and techniques.
Trading though Trademsartonline gives you the benefit of MCX low brokerage. The brokerage rates are dependent on the MCX trading levels. Value trading plans (0.007%) are ideal for MCX traders with low volumes. Power Trading plan (Rs. 15 per executed order) is suitable for higher volume traders.
You can use the MCX brokerage calculator to compute the exact amount you will pay as MCX brokerage expenses, as per the various brokerage plans available with us.
MCX Traders need to pay the following charges:
- CTT (Commodity Transaction Tax) or STT (Securities Transaction Tax). STT is applicable only for agri-commodities.
- Turnover charges
- SEBI Transaction Fees