Tuesday, 30 April 2019

How to trade in MCX Lead and Lead Mini



MCX Offers trading in Commodity Futures  and Options including diverse segments like Bullion, Ferrous and Non-Ferrous Metals, Energy,Weather and Agriculture, as at March 31, 2012.
The highest traded Commodity in FY2012 is Silver.  
 
Bullions:
  • Gold
  • Silver
Base Metals:
  • Aluminium 
  • Copper
  • Lead
  • Nickel
  • Steel
  • Zinc   
Energy
  • Brent Crude Oil
  • Crude Oil
  • Natural Gas 
Oil &Oil Seeds
  • Crude Palm Oil
  • Kapaskhali
Fibers
  • Cotton
  • Kapas  
Spices 
  • Cardamom
Others
  • Menthaoil
  • Potato 
MCX trade timings: 

 Monday -  Friday  : MCX Lead/Lead Mini   : 09.00 am to  11.30 pm(Summer Season)                                                               :  09.00 am to  11.55pm(Winter Season)                                                                                                                                                                                                   :



The revised trading hours with effect from December 31, 2018 are as follows:
 
 
Particulars
Trade Start Time
Trade End Time
Non-Agri Commodities
09.00 AM
11.30 PM / 11.55 PM
Internationally Reference able Agri Commodities (Presently- Cotton, CPO & RBDPMOLEIN)
09.00 AM
09.00 PM
All other Agri Commodities
09.00 AM
06.00 PM


How to trade in MCX LEAD/LEAD MINI:


Before going to Start trading in MCX Lead/lead Mini, should known some basic things.


Buy & Sell both can be possible in MCX Trading. People Sell a commodity without buying that commodity.

MCX trading comes under Futures trading,In Futures trading Buy/Sell depend upon future Conditions(Rate/Price may go up/down). 

Some terms used in MCX Trading 


Long means    Buy
Short means   Sell
Target means  Profit booking Point/Rate

Stop loss means The point at how much loss we can afford.


One Trade completed when Buy covered Sell
                                                        Sell covered  Buy.


General Rule of MCX Lead/Lead Mini Trading

Buy On Dips(Lows)
Sell On Rise (Highs)


Example 

1 kg of MCX Lead buy at  Rs.131
                                    sell  at  Rs.134
                                    Profit  3 Points



1 kg of MCX Lead Sell at  Rs.134
                                    buy  at  Rs.131
                                    Profit   3 Points


When ,

MCX  lead/lead mini price/rate are in rising/up trend, go for Long(Buy)
           
MCX lead/lead mini price/rate  are in falling/down trend, go for Short(Sell)

Profit /Loss Calculation in MCX  Lead/Lead Mini


Example:


MCX lead/lead mini Bought at 131,With a target of 134 and a Stoploss of 129.50.
                           Profit Calculation in MCX Lead

When MCX Lead reach the price of 134,our Target has achieved/reached and Profit can be made in our Trading account


          Profit Points         = Selling Point - Buying Point
                                             =  134-131
                                             =  3 points
   MCX Lead Return/Yield Per one Point = Rs.5000
    Profit = Profit points*yield per one point
                             Profit  = 5000*3

So, Our Profit for that trade  = Rs.15,000    
                                 
                            Loss Calculation in MCX  Lead


When MCX Lead Reach the price of 129.50,Stop loss has triggered and Loss has come to our trading account.


                     Loss Points = Buying Point - Selling Point
                                            =  131-129.50

                                             =  1.5 points
   MCX Lead Return/Yield Per one Point = Rs.5000
               Loss = Loss points*yield per one point
                      Loss = 5000*1.5

So,Our Loss for that trade  =Rs.7500  

Profit Calculation in MCX Lead Mini

We can apply the same points for MCX lead mini trading too.


When MCX Lead mini reach the price of 134,our Target has achieved/reached and Profit can be made in our Trading account


          Profit Points         = Selling Point - Buying Point
                                             =  134-131
                                             =  3 points

   MCX Lead Mini Return/Yield Per one Point = Rs.1000
    Profit = Profit points*yield per one point
                             Profit  = 1000*3

So, Our Profit for that trade  = Rs.3,000    
                                 
                            Loss Calculation in MCX  Lead Mini


When MCX Lead mini Reach the price of 129.50,Stop loss has triggered and Loss has come to our trading account.


                     Loss Points = Buying Point - Selling Point
                                            =  131-129.50

                                             =  1.5 points

   MCX Lead mini Return/Yield Per one Point = Rs.1000
               Loss = Loss points*yield per one point
                      Loss = 1000*1.5

So,Our Loss for that trade  =Rs.1500