1. What are the trading timings of MCX?

The Exchange operates on all days except, Sundays and Exchange specified Holidays. The Exchange notifies a list of Holidays for each calendar year in advance.

Days Time Commodities Traded

Monday to Friday 10.00am to 5.00pm All commodities

Monday to Friday 5.00pm to 11.30pm All commodities except agri Commodities and Sponge Iron.

Saturday 10.00am to 2.00pm All commodities

* The market will not halt anytime during a trading session from 10:00 am to 11:30 pm .

* In case of Day light savings timings in US, the trading session will be extended from 11:30 pm to 11:55 pm .

2. What are the different terms in contract specifications?

• Trading unit - The Trading unit is the minimum quantity for a contract that can be traded (bought or sold). e.g. If a member is buying 1 lot of Silver, he has to buy minimum 30 kg of Silver as the trading unit is of 30 kgs.

• Quotation / Base value – It is the quantity / units for which the prices are quoted for online trading on TWS.

e. g. If the quotation or base value for Gold contract is given as 10 grams

and the price available for trading on TWS is 9000, that price is for 10 grams of the Gold.

• Maximum Order Size (quantity) – Maximum order size in terms of quantity is the maximum number of lots that can be bought or sold in a single order. The maximum order size of each commodity is given in its contract specifications.

• Maximum Order Size (value) – Maximum Order Size in terms of value is decided on the basis of available margin deposits. By default maximum order size is Rs. 65 Lacs and increase in the said limit is on the basis of member's request subject to available margin deposits as per circular no. MCX/242/2006 dated June 15, 2006 .

• Tick Size – Tick size is the minimum price difference between the bids and asks for a particular contract.

• DDR - Due date rate (DDR) is the final settlement price for a particular futures contract based on which the outstanding positions on expiry will be settled off.

3. What is Base Price?

Base price is the reference price used for launching / commencing new futures contract.

4. What is Circuit Filter?

Circuit Filter (DPR): The Exchange notifies a daily circuit filter limit for futures Contract in terms of percentage of intra day variation allowed in a day with respect to the close price of previous day. Circuit filter provides the maximum range within which a contract can be traded during a day. Such circuit filter is different for different commodities. The orders, which are in violation of such circuit filter, are rejected by the system.

5. Why the user ID gets locked (account locked) and how to unlock it? (What to do if I forget my MCX password?)

A User ID gets locked, if the Member /user enters wrong password for more than 5 times. Incase a user ID gets locked or the user has forgotten his password, the password can be reset through his member admin terminal. Members can log in member admin terminal and can access the path as: Tools > Reset Password. If the password of Member Admin terminal gets locked, member has to send a request to the Exchange for reset of password.

6. What are the different types of orders I can place in the trading system?

Order Types: There are two types of Orders .

1. Regular Order.

2. Stop Loss Order.

• Regular Order: Regular orders can be placed in the system with market price or limit price.

Conditions: As per the conditions they are of following types.

ΘLimit order: specifying the price at (or better than) which the trade should be executed.

Θ Market order: Market order should be executed at whatever is the prevailing Market price at touchline on or after submission of such order. If there is no bid / ask at that point of time, it takes the last traded price and remains in the system. If there is no LTP (Last Traded Price) then system confirms the order with the same side or the counter side touchline and if there are no orders at the touchline and no LTP, then system confirms the price as previous day's close price.

• Stop loss Order: which are kept by the system in passive or abeyance mode and is activated only on trigger of a price, as specified by the member .

Orders can be classified based on the period as:

• End of the session (EOS): are available for execution during the current trading session until executed or cancelled. All EOS orders will get cancelled at the end of the day during which such orders were submitted.
• Good till date (GTD): which are available for execution till end of the date indicated in the order or till the last trading day (Expiry Date) of that contract month, whichever is earlier . If the order is not executed during the specified period, it gets cancelled by the system on the EOD of the specified Date.
• Good till cancel (GTC): which is available for execution till maturity of the contract, or till it is cancelled by the Member /user, whichever is earlier.
• Immediate or Cancel (IOC): orders will get cancelled if not executed on submission.
• Day Order: are available for execution during the current trading until executed or cancelled. All DAY orders will get cancelled at the end of the day during which such orders were submitted

Long Position: Long Position is Buying a contract.

Short Position: Short position is Selling a contract.

8. What does Open Interest in the market means ?

The open interest is the number of contracts outstanding / unsettled in the market.

9. What do you mean by Initial Margin?

Initial Margins are payable upfront and specified in the contract specifications for each commodity.

10. What do you mean by Volatility margins?

Volatility margins are levied as risk management measure in case of volatility in any particular contract and is informed to members via message in case of any DPR ( Daily Price Range ) relaxation and levied on real time basis.

11. What are the order matching Rules?

Orders in the normal market are matched on price -time priority basis. Best buy order matches with the best sell order. The best buy order is the one with the highest price and the best sell order is the one with the lowest price.

12. What is Maximum Allowable Open Position?

Maximum Allowable Open Position is the maximum open position of client / member that can be availed in a particular contract / commodity. Refer circular no. MCX/340/2006 dated August 23, 2006

Penal provisions have been incorporated for Breach of Open Position limits. (refer circular no. MCX/300/2006 dated August 1, 2006 .)

13. Is penalty levied for taking fresh positions in “Both Option and Sellers Option” contracts?

No fresh position is to be created during last five trading days of the contracts other than compulsory delivery option. On violation of the said directive non-compliance charges as specified in the Exchange circular no. MCX/546/2006 dated December 8, 2006 will be applicable.

The financial gains made from above will be deposited in the Investor Protection Fund of the Exchange.

14. What is the Turnover Limit?

Turnover limit is at user level and not at member level. A member can specify ‘n' value of turnover limit to his users. The user can utilize his turnover limit subject to availability of unutilized margin at the member level.

Computation of turnover limit at user level is as follows:

Utilized buy and sell turnover limit comprises of: Traded Value + Value of Pending Orders.

15. Where can I get Product Specifications (feasibility study report)?

Feasibility study reports for commodities are available on website of the Exchange i.e. www.mcxindia.com . It contains information like production, usage, demand, supply etc.

It is always advisable for a trader to read feasibility study report before

trading.