After the launch of MCXBULLDEX and MCXMETDEX trading in commodities has become easier and the margin requirement has also gone down significantly.
MCXBULLDEX is the first tradeable commodity index in INDIA followed by MCXMETDEX
MCX iCOMDEX Bullion index futures
SYMBOL for MCX iComdex Bullion index futures
The base value for the index is considered as 10,000 dated 31 December 2015
Underlying contracts for the index are the near month Gold (1kg) & Silver (30kg) future contracts.
For this year the weightage stands as 70.52% for gold and 29.48% for Silver
Availability of the contracts would be for 3 months (as for most of the other future contracts)Current - Near - Far Month.
Lot size stands at 50 units and approx. value of the index is at 16,000 so the total contract value is 16 lakh (8 lakh on the buy-side and 8 lakh on the sell-side).
The best part about this Index is they are cash-settled so there's no fear of taking delivery of the commodity.
The margin required is a Minimum of 5 % or based on SPAN whichever is higher. (Currently 7% due to volatility)
Tick Size stands at 1 point which is 50Rs. and the average daily volatility is 1.4%. (As per the price of 16,000, 224 is the average volatility which means 11,200Rs. on a margin of 40,000 that is a movement of 28% on capital)
Cost Involved in Transaction (One lot Buy and Sell Price of 16,000)
Exchange transaction charge: 41.60
Stamp duty: 16
SEBI charges: 0.80 =153Rs.
Total cost of 3 points i.e. one needs to at least sell 3 points higher to just make No Profit No Loss.
This is Fixed Cost and in addition brokerage will be added as per the Broker.
MCX MCXMETDEX Coming soon...
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