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Client Guide

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CLIENT GUIDELINES

Kindly read the following carefully and follow very strictly.

1. REGISTRATION
  • Your Client registration is a must. You need to have client code for Commodity Derivatives market.
  • It is desirable to have your Commodity Demat A/c with us, so that the to and for transfer of commodities would be easier and faster, at very economical cost.
  • Please remember your client code and your Commodity Demat A/c Number.
2. TRADING
  • As a trader, you need to contact our Commodity Division.
  • Deposit of Rs.50, 000/- has to be made along with your registration.
  • You should pay 8% Margin, Per lot of Commodity Futures.
  • Orders are entered as per your wish
  • Orders are matched on price and time priority.
  • Matched orders are confirmed at each originating terminal. Meanwhile, all unmatched orders remain in the system until matched or withdrawn.
  • Keep Record of your buy/sell orders Contract wise, Commodity wise,
  • Check with the trading section at regular intervals.
  • Place your order with clear mention about the quantity and price.
  • Always check your order is executed or pending, fully executed, partly executed etc.
  • Order modification is possible. You can modify, cancel your order, before the order is executed.
  • Don't wait till last minute to close your speculative open positions.
  • Don't leave your order at the choice of our trading staff.
  • It is advisable to have stop loss order for all your speculative position.
  • Trade within your limit. Know your capacity to loose. Don't over speculate.
  •  The transactions are Marked to Market (M-to-M) on a day to day basis at the end of the day. The M-to-M Loss to be paid on the next day before the commencement of trading.
  • Before the market close / after the market close, reconfirm your total trade, etc.
  • Any discrepancies please prefer your complaint on the same day. No complaints will be entertained on the next day.
  • M-to-M profit is paid to you on the next day at the end of the trading.
  • Based on your security deposit / margin / account credit, you have limit to trade. If there is a debit balance, your order may not be accepted.
  • If you Don't have sufficient credit / margin depending on your trade volume, your orders may not be accepted.
  • If your M-to-M loss exceeds your margin your fresh orders cannot be accepted.
  • Don't feel bad, and blame us if your order is not accepted in the system, because of any of the safety restrictions.
  • You should ensure that you always have sufficient margin / credit, to enable you to trade at any time.
  • The life of the transaction valid as per the life of the respective contract. For (e.g.) if you by a GOLD 04 FEBRUARY 2006 contract it's expiry date is 04 February 2006. But if you are a speculator you have to Square up your buying position before the Tender Period (Delivery period) (i.e.) 31st January 2006.
  • If you buy a Gold 04 February 2006 Contract, you can close by selling the contract at any day before the Tender period. If you do not close the contract till the start of Delivery period, you have to take delivery. So, Please be careful if you are a speculator, Don't leave the position open.
  • M-to-M pay-in, Pay-out is taking place on every day, it is advised to keep sufficient balance in your ledger account, so that both of us will not put into any hardship.
  • If the sufficient Delivery based Margin is not available in the Account, then, the open position will be compulsorily closed out before the tender period as applicable.
  • The pay-in, pay-out and day-to day M to M will not be linked to your Equity/Derivative Market of Capital Market Pay-in / Pay-out.
3. INVESTMENT BUY / SELL (DELIVERY BASED)
  • Place your order with specific quantity at market rate or specific rate.
  • Issue your cheque for the total value of your purchase, immediately.
  • Submit your copy of Ware House Receipt for all your sales immediately.
  • If any of your Purchase Deliveries to be adjusted against your sales, please inform the same to our Trading Staff / Delivery Staff while placing your sale orders.
  • One Delivery based Transaction MCX charges a Flat Rate of Rs.350/- irrespective of any quantity.
  • Pay-out / Delivery-out are on T+2 basis
  • Sales Tax Registration is Compulsory for Sales only. Not for Purchases. But if the investor buying now and later if he comes for selling again he must have Sales tax Registration number.
  • Delivery based contract list is available with our Dealer.
  • List of Warehouses along with commodities and Delivery centers is available with our Dealer.
4. ADVANTAGE OF TRADING
  • The contracts are standardized by quality and quantity, widely accepted and therefore are liquid financial instruments
  • Cost efficient trading and risk management opportunities
  • Contracts are traded online on a real time trading platform, representing a confluence of opinions on future values and resulting in price transparency and best price discovery
  • Futures prices are widely and instantaneously disseminated, serving as a ready reference price for the entire trading community
  • Hedging - price risk management by risk mitigation
  • Speculation - take advantage of favourable price movements
  • Leverage - pay low margin to enjoy large exposure
  • Liquidity - ease of entry and exit of market
  • The depth of the market allows the contracts to be easily liquidated prior to required receipt or delivery of the underlying commodity
  • Price stabilization along with balancing demand and supply position
  • Flexibility, certainty and transparency in purchasing commodities facilitate bank financing.
4. GENERAL
  • You get your contract cum bill on daily basis. Please checkup your trade if any discrepancies you have to bring to our notice immediately.
  • Since the market is working on T+2 basis, any delay in noticing the mistake / discrepancy has to be sorted out on T+1 basis.
  • Ensure that you have delivery on hand, before place your sell orders.
  • Any non-delivery would be resulted in auction. Since the exchange delivery system is on netting basis, your auction may be as follows.
  • Your sale / purchase is resulted in shortage / non-delivery from the exchange itself then you would receive the auction as per exchange auction rate or closed out rate.
  • Have your BO A/c (Demat A/c) with our DP Division, so that your to and for delivery is faster, without any procedural delay and cheaper.
  • You can checkup you're a/c statement, Demat a/c statement, through easi scheme. Ensure that all your purchase deliveries are properly credited.
  • Any discrepancies in Accounts, and non-receipt of deliveries, you have to bring to our attention immediately.
  • To receive payments on the same day of payout open your Bank a/c with our Bankers.
  • Mistakes / Carelessness lead to unlimited financial loss to either parties, in the Commodities Market.
Please read the guidelines and follow to avoid any loss and misunderstanding

Please note the guidelines issued by MCX. Visit: www.mcxindia.com
All Trades as per regulation of MCX (Multi Commodity Exchange of India Ltd) and FMC (Forward Markets Commission)

Thanking You,

Wish you Profitable Trading & Investment