BASIC CONCEPTS OF TRADING IN MCX & COMMODITY MARKET

Traders in MCX market execute their trade with the help of TWS (Trading Work Station). TWS is a trading platform which enables the trade to place an order, and when the trades get executed can book the profit and exit the trade. The application has got many unique features which are very important from the trading point of view.  It display commodity ticker, live market watch, volume of the day, last trading position, top gainer loser, buying and selling signals and many more. The TWS shows last 5 or 6 trading orders of the current contract, the time and price logic are used for placing the order in a particular contract.

To place an order for the trade there are certain terms and conditions that are to be followed, these are:

Intraday Order: As per the name suggests the order which is placed today should be executed within the day itself. If the trade is not executed then the order gets resolved with the day itself before the market close. Here the trader cannot carry forward the trade for the next day.

GTC: Good Till Cancelled (GTC) in this particular order for the trade the trade in continued till the expiry of the contract for that particular product.  This trade can also be cancelled by the trader himself within a day or whenever they found it suitable.

GTD: Good Till Date (GTD) if a trader has entered a particular date for the expiry of that particular good then the system will cancel the order on that particular date irrespective of the execution of the trade. The order is automatically cancelled by the system.

IOC: An Immediate or Cancel (IOC) as soon as the order is placed in the market it enables the trader to execute it, if the trader fails to do so, the system will automatically cancel the trade.

These were the some of the ways by which a MCX market trader can place the trade and make profit.

There are two more conditions which are based on price which are necessary to be followed while placing the order

Limit Order: it is the order where a trader places the order by specifying a particular price for the product.

Market Order: in this order the trader place the best available market price for the product.

Individuals can take membership for trading on their accounts as well as on the behalf of their clients, for this they have to be abided by some of the guidelines mentioned by the exchange. Many brokers and sub-brokers are involved in this particular activity, they themselves study the market and also evolve Mcx tips from the TWS and help their clients trade in the market. They study the market as they are having all the available data with them from terminal which are essential for the placing a order and also the execution of the trade. A naïve trader should keep himself away from making their own commodity tips this would only reproduce loss and nothing else. Else one should take the advice of the experts or any other entities like advisory firm for safe and risk free trading.