Any individual, Hindu undivided family (HUF), proprietary firm, partnership firm, or a company can open an account with Kotak Commodity.
Only resident Indians can open commodity trading account.
It's simple! Apply online, call or visit our local branch near to you. Our Relationship manager will contact and help you.
You can start trading by placing the exchange specified margin. The margin can be in the form of Cash or Stocks or Mutual Funds or Fixed Deposit or Bank Guarantee (for approved corporate firms).
1) PAN Card
2) Operating bank account and Kotak commodity trading account
3) Demat account is not mandatory for trading, however commodity Demat account is mandatory for all delivery based
transactions
4) Sales Tax number is not mandatory for trading. However, it is mandatory for all delivery based transactions
NRIs, MFs, Banks and FIIs are not allowed to trade in commodity futures in India.
The following commodities are actively traded in these two Exchanges:
Multi Commodity Exchange (MCX)
Bullion: Gold and Silver
Metals: Aluminum, Copper, Zinc etc.
Oil and Oil Seed: Refined Soy Oil, Soy Bean etc.
Energy: Brent crude oil, Crude oil, etc.
Other commodities: Urad, Chana, Wheat, Guar Seed, Sugar, Potato etc.
Bullion: Gold and Silver
Metals: Aluminum, Copper, Nickel, Sponge iron and Zinc.
Oil and Oil Seed: Castor oil, Crude Palm oil, Soy Oil, Soy Bean etc.
Energy: Brent crude oil, and Furnace oil.
Agro Commodities: Cotton, Chana, Maize, Guar seed, Sugar, Rubber, etc.
For newly listed commodities please visit home page of exchange websites
www.mcxindia.com and
www.ncdex.com
Both MCX and NCDEX provide trading facility from Monday to Saturday.
Monday to Friday: 10.00am - 5.00pm for Agro-based commodities
Monday to Friday: 10.00am - 11.30pm for Precious / Base metals and Energy
Saturdays: 10.00am - 2.00pm for all commodities
Both the commodity exchanges have done exceedingly well over the years, in terms of risk management, volumes or launching new & better commodity products. However, before choosing an exchange you need to check the following:
The commodity you wish to trade is listed on that exchange.
Check the contract specifications of that commodity to ensure it suits you best.
There is enough liquidity in the exchange for commodities of interest.
Commodity price should be in sync with the physical market prices or its respective benchmark prices.
Margin is the amount which is required in advance to execute trades on the exchanges.
Initial Margin is the amount of money deposited by both buyers and sellers of futures contract to ensure the performance of trades executed.
Maintenance Margin is an amount over and above the Initial Margin to ensure that the balance in the margin account never goes below a pre-specified level.
Additional Margin is the margin collected to protect the open positions from unexpected volatility prevailing in the market.
On the day of entering into the contract, it is the difference of the entry value and closing price for that day. In case of carry forward position, MTM is the difference of the market price less yesterday's closing price.
Yes, there are circuit limits or daily price range (DPR) to safeguard the interests of general investors from the extreme volatilities in markets for preventing any unexpected fall or rise beyond a limit. When the circuit limit is hit, there is a cooling period of fifteen minutes after which the trading will begin again with fresh circuit limits. For updated commodity specific circuit limits, please visit
www.ncdex.com and
www.mcxindia.com
Yes, there is a maximum permissible limit on holding a particular commodity for client as well as member. It varies from commodity to commodity and exchange to exchange. Please see contract specification on exchange website for position limit at client and member level at
www.ncdex.com and
www.mcxindia.com
Long - means buying a commodity in anticipation that the price will move up.
Short - means selling a commodity in anticipation that the prices will come down.
Stop loss - Stop loss is an order to limit an investor's loss on the position he holds. By placing a Stop Order, Investor actually set a loss level which investor is willing to undertake.
Yes. You will receive contract notes for your trades. Further, your dealer/relationship manager will update you accordingly.
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