oIntroduction
o Trading at MCX
o Why MCX
o Demerits
o Differences
o Conclusion
Introduction
o A nationwide online multi commodity market
place
o An independent and demutualised exchange
o Promoted by Financial Technologies Limited
o Formulated strategic alliances with leading
commodity trade associations in India
o Poised to emerge as “exchange of choice”
Aluminium(1kg) 117.95 
Cashewkern(1kg) 265.00 
Coffeerob(100kgs) 99943.00
o Introduction
oTrading at MCX
o Why MCX
o Demerits
o Differences
o Conclusion
Trading at MCX
o Trading days and hours
o Exchange members & authorized users are
entitled to trade
o Clearing the Trades on MCX
o Process of settlement and delivery
o Physical delivery in the warehouse
o Role of a Warehouse in Futures Market
Aluminium(1kg) 117.95 
Cashewkern(1kg) 265.00 
Coffeerob(100kgs) 99943.00
o Introduction
o Trading at MCX
oWhy MCX
o Demerits
o Differences
o Conclusion
Why MCX
o Leverage
o Commission costs
o Liquidity
o Ability to go short
o Reduced Risks
Aluminium(1kg) 117.95 
Cashewkern(1kg) 265.00 
Coffeerob(100kgs) 99943.00
Why MCX
o Diversification
o Helps to Fix Price Easily
o No transportation charges
o Why invite risk by investing in a metal
company when you can trade in the metal
itself
Aluminium(1kg) 117.95 
Cashewkern(1kg) 265.00 
Coffeerob(100kgs) 99943.00
o Introduction
o Trading at MCX
o Why MCX
oDemerits
o Differences
o Conclusion
Demerits
o Leverage
o Speed of trading
o Poor supervision
o Huge volatility & uncertainty
Aluminium(1kg) 117.95 
Cashewkern(1kg) 265.00 
Coffeerob(100kgs) 99943.00
o Introduction
o Trading at MCX
o Why MCX
o Demerits
oDifferences
o Conclusion
Differences
Commodity derivatives
Financial derivatives
Settled by actual deliveries
Cash settled
Quantity and quality differences exist
No such differences exist
Holding cost includes assaying, warehousing &
insurance costs
Holding costs normally consists of only interest costs
Seasonal in nature
Active throughout the year
Factors impacting:
• demand and supply
•Import-export regulations
•Government intervention
Factors impacting:
•Global and local economic conditions
•Performance of the entity
•Taxation structure
Aluminium(1kg) 117.95 
Cashewkern(1kg) 265.00 
Coffeerob(100kgs) 99943.00
Credits
Sonam Shetty
51
Rahul Chandalia
72
Sanam Shah
108
Bhavin Udani
115
Aluminium(1kg) 117.95 
Cashewkern(1kg) 265.00 
Coffeerob(100kgs) 99943.00