14 Jan 2013

MCX Trading Lessons


How to trade in MCX :

Before going to Start trading in MCX,should known some 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 go up/down). 
Some terms used in MCX Trading 

Long means    Buy
Short means   Sell
Target means  Profit booking Point/Rate
Stoploss means The point at how much loss we can afford.

One Trade completed when Buy covered Sell
                                                Sell covered  Buy.

General Rule of MCX Trading
Buy On Dips(Lows)
Sell On Rise (Highs)

Example 
10 gms of MCX Gold buy at  30800
                                     sell  at  30900
                                    Profit    100 Points

10 gms of MCX Gold Sell at  30900
                                     Buy  at  30800
                                     Profit  100 Points

When MCX commodities are in rising trend,go for Long(Buy)
           MCX commodities are in down trend,go for Short(Sell)

Profit /Loss Calculation in MCX 

Example:


MCX Silver Bought at 58900,With a target of 59470 & Stoploss of 58750.
                           Profit Calculation in MCX


When MCX Silver Reach the price of 59470,Target reached&Profit come to our account.


          Profit Points         = Selling Point - Buying Point
                                         =  59470-58900
                                         =  570 points
   MCX Silver Return/Yield Per one Point = Rs.30
    Profit = Profit points*yield per one point
                             Profit  = 570*30
So,Our Profit for that trade  = 17,100    
                                 
                            Loss Calculation in MCX 

When MCX Silver Reach the price of 58750,Stop loss triggered&Loss come to our account.

                     Loss Points = Buying Point - Selling Point
                                         =  58900-58750
                                         =  150 points
   MCX Silver Return/Yield Per one Point = Rs.30
               Loss = Loss points*yield per one point
                      Loss = 150*30
So,Our Profit for that trade  = 4500   
                

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