what is multi commodities market, how they work
how mcx erning money in sell or buy ?
2006-09-14 21:16:28 · 6 answers · asked by business tycoon 1 in Local Businesses ➔ India ➔ Mumbai
MCX is an independent and de-mutulised multi commodity exchange. It was inaugurated on November 10, 2003 by Mr. Mukesh Ambani, Chairman and Managing Director, Reliance Industries Ltd.; and has permanent recognition from the Government of India for facilitating online trading, clearing and settlement operations for commodities futures market across the country. Today, MCX features amongst the world's top three bullion exchanges and top four energy exchanges.
MCX offers a wide spectrum of opportunities to a large cross section of participants including producers/ processors, traders, corporate, regional trading centre, importers, exporters, co-operatives and industry associations amongst others. Headquartered in the financial capital of India, Mumbai, MCX is led by an expert management team with deep domain knowledge of the commodities futures market. Presently, the average daily turnover of MCX is around USD1.55 bn (Rs.7,000 crore - April 2006), with a record peak turnover of USD3.98 bn (Rs.17,987 crore) on April 20, 2006. In the first calendar quarter of 2006, MCX holds more than 55% market share of the total trading volume of all the domestic commodity exchanges. The exchange has also affected large deliveries in domestic commodities, signifying the efficiency of price discovery.
Being a nation-wide commodity exchange having state-of-the-art infrastructure, offering multiple commodities for trading with wide reach and penetration, MCX is well placed to tap the vast potential poised by the commodities market.
Key shareholders
Financial Technologies (I) Ltd., State Bank of India and it's associates, National Bank for Agriculture and Rural Development (NABARD), National Stock Exchange of India Ltd. (NSE), Fid Fund (Mauritius) Ltd. - an affiliate of Fidelity International, Corporation Bank, Union Bank of India, Canara Bank, Bank of India, Bank of Baroda , HDFC Bank and SBI Life Insurance Co. Ltd.
2006-09-14 22:29:17 · answer #1 · answered by ali h 4 · 0⤊ 0⤋
mcx is an exchange to trade commodities which include aricultural produce, poultry, metals, energy products ... every thing... They work on the futures and options mode. You need to understand these terms very clearly before entring the multi commodity market. They charge trading fees and there are margin requirements for traders in this exchange... The echange earn through these fees.
2006-09-14 21:40:07 · answer #2 · answered by ni 2 · 0⤊ 0⤋
Commodities exchanges normally monitor the transactions undertaken in the exchange. They are different from OTC markets in the following respects:
Credit risk (or country party risk) : In OTC, this risk is borne by the buyer or the seller; in the case of exchanges it is taken up by the exchange house
Margin requirements: For any transaction undertaken in an exchange, there is a need for an initial margin based on the value of the contract. And this margin is updated or marked to market on the basis of the changes in the underlying value of the contract due to fluctuations in price and this will be paid or received by the exchange. In effect, the exchange will get interest free funds from the players - the buyer and seller and this interest income sustains the operations of the exchange
Amount/Rate/Delivery: In OTC, they are all tailor made to suit the convenience of the players; however in the exchange markets, they are all standardised
Thus, if one were to look into, the interest earned on margin collected on the deals put through in the exchange mainly enables the exchange to meet their expenses and also earn profit. Hence the more the popular the exchange is, the more the number of deals put through the exchange is, the more exchange would make it!
Got it?
2006-09-14 21:41:56 · answer #3 · answered by guru_raghavan 2 · 0⤊ 0⤋
Multi Commodity Exchange of India Ltd is an independent commodity exchange based in India. It was established in 2003 and is based in Mumbai. The turnover of the exchange for the fiscal year 2009 was US$ 1.24 trillion, and in terms of contracts traded, it was in 2009 the world's sixth largest commodity exchange. MCX offers futures trading in bullion, ferrous and non-ferrous metals, energy, and a number of agricultural commodities (mentha oil, cardamom, potatoes, palm oil and others).
2014-10-17 19:22:54 · answer #4 · answered by riya 2 · 0⤊ 0⤋
this ax-change is mcx its stock market in it you do 2 type earning jobbing are delivery base jobbing you sell and bye whole trading day of share but end time-of market your Passion should me Neill although you pay your pending stocks money by check to mcx
2006-09-14 21:22:43 · answer #5 · answered by sonu 2 · 0⤊ 0⤋
go through site www.commoditiescontrol.com , u will get answers of most of the things . it is excellent site
2006-09-14 21:21:21 · answer #6 · answered by he-man 1 · 0⤊ 0⤋