Commodity Futures Trading is being carried out by “Ventura Commodities Pvt. Ltd.” with two exchanges viz.,

      NCDEX - National Commodity and Derivatives Exchange Ltd.
      MCX – Multi Commodity Exchange.

The number of commodities as of date available with MCX and NCDEX is more than 50, which includes precious metals, energy (crude oil , brent ), oilseeds, pulses, grains, spices, base metals and other agro commodities.

There are specific trading lots or trading units and specific delivery lots and delivery units for each commodity with both the exchanges. Each commodity also has different contracts available like 3 months / 4 months etc. The Quotation or the price available in the trading screen for each commodity varies for specific base quantities like, 20 Kgs., 100 Kgs., 10 Kgs., 100 gms.,etc. Similarly the tick size also varies commodity wise.

  •  You could take up position, Long or Short i.e., Buy or Sell Commodities for the minimum contract size specified.
  •  Multiple contracts could be placed at a given point of time within the exercisable limit or order size stipulated.
  •  Similar to Stocks, Commodities too have a Daily Price Band, thus various Upper Circuits and Lower Circuits are possible.
  •  Your view could work out for an Intra Day Trading, Short Term, Medium Term or Long Term outlook.
  •  Trades in Commodities could be with the perspective of squaring off for differentials or for taking/giving Delivery too.
  •  Hedging could be done, Arbitrage between both the exchanges, Calendar Spread etc. are some of the trading strategies.

Features:

  •  Upfront Initial Margin is required before client places his order for trade.
  •  The initial margins are in the band of 4 - 10% of the traded value of the commodities.
  •  There is also a MTM levied based on the volatility and an Exposure Margin.
  •  Any client interested in trading has to necessarily go by the minimum trading units for that particular commodity.
  •  The timings have been so devised by the exchanges that there are two sessions.

       NCDEX & MCX - Monday to Friday : 10.00 AM to 5.00 PM (For all Commodities) and 5.00 PM to 11.30 PM
       (For specific Commodities) ; Saturday - 10.00 AM to 2.00 PM (All Commodities)

  •  The Trading activities are almost similar in line with the F&O Derivatives under Securities (Equity).
  •  Your Market price, brokerage , transaction charges , service tax and stamp duty forms the part of your contract note.
  •  Delivery of commodities are done based on the “Sellers Option”, “Delivery by Matching” etc., depending on the exchange stipulations. You need to maintain a Demat Account with NSDL and CDSL in case you are going in for Delivery. Similarly Local Sales Tax and Central Sales Tax registration is also required at the stage of Selling.
  •  Generally all contracts expire on the 15th of the contract month for MCX and all contracts expire on the 20th of the contract month for NCDEX.