Wednesday, 20 February 2013

Introduction of MCX Market


Multi Commodity Exchange(Mcx) of India is a de-mutualised online commodity exchange of India promoted by Financial Technologies (I) Ltd, SBI, Fidelity International, NSE, NABARD, HDFC Bk, SBI Life Insurance Co., Union Bank of India, Canara Bk, Bank of India, Bank of Baroda and Corporation Bank. MCX-SX stands for "MCX Stock Exchange." MCX-SX is majority-owned (51%) by India's Multi Commodity Exchange and is meant to provide a low-cost, high-speed platform to facilitate the trading of exchange traded currency derivatives while removing counter-party risk.

The few majors in commodity exchanges are:

MCX (Multi Commodity Exchange of India Ltd.): 


MCX presents futures trading defined in terms of type of contracts offered in 58 commodities, from various market segments including energy, bullion, iron and non-iron metals, oil seeds, and other agricultural commodities. It is the world’s first and for most also one and only company acquired ISO 27001:2005 certification.


National Commodity & Derivatives Exchange Limited (NCDEX): 


 It is a private limited company which has obtained Certificate for Commencement of Business in Mat 2003 and is online commodity exchange based in India.

In India there are many companies and agencies for commodity trading tips, they are also known as commodity tips provider. They provide tips in commodity market on the basis of technical analysis and fundamental analysis. Now a day’s many techniques are used for the generation of calls in commodity market such as by the help of chart technique, candle sticks technique etc. But the best technique ever found is technical analysis.

Commodity market is the place where the raw article or primary products takes place for trading. Means traders use the commodities for trading. Commodity trading in India has a long story. It started in India much before it started in other countries.


Benefits of MCX Tips :


Mcx Tips are very useful and profitable if the traders trade in it a proper and planned manner; it is just like any other markets (say Stock markets). There are many benefits of trading in MCX Commodities to mention a few are :-


It provides hedging option for people who trade in physical commodities- farmers, manufacturer and dealers or consumers of Gold, Silver, Zinc, Copper etc.


You can trade across different markets and benefit from it by using the arbitrage, i.e. the price parity between the two markets.

Physical Delivery of some commodities can also be obtained if the person wants to hold the physical commodity.


Trading is done on MCX exchange in electronic form so there is no chance of price manipulation by dealer, also the quality of deliverable can be assured.


 MCX Tips and markets are flourishing because of all above mentioned factors and many more. Therefore we seeing huge spurt in activity in Indian Commodity markets and majorly MCX Commodities trading. As we mentioned earlier commodities markets are somewhat similar to the Indian Stock Market in the way that both are volatile and involve huge risks, so you need to trade in a right way else all your capital will be drained and you will end up losing your had earned money.

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