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What are the contract specifications for crude palm oil trading on MCX?
The contract specifications for crude palm oil trading on MCX are as follows:
Contract Specifications
Crude palm oil contracts traded on MCX are standardized agreements that specify the quality, quantity, and delivery terms of the commodity. Here are the main specifications:
1. Commodity: Crude Palm Oil
2. Trading Unit: 10 Metric Tons
3. Price Quotation: Rupees per 10 kilograms
4. Tick Size: 10 paise per 10 kilograms (~Rs. 1 per metric ton)
5. Delivery Location: Designated warehouses in MCX-approved delivery centers
6. Delivery Period: The contract is available for delivery in the current month and the next two calendar months
7. Delivery Day: The delivery day is the 15th of the delivery month, or the following business day if the 15th is a holiday
Contract Expiry and Settlement
MCX crude palm oil contracts expire on the 20th calendar day of the delivery month. If the 20th is a holiday, the contract expires on the previous business day. Settlement of the contract is done through compulsory delivery, and the buyer and seller need to fulfill their delivery obligations as per the exchange rules.
Conclusion
Understanding the contract specifications for crude palm oil trading on MCX is essential for traders looking to participate in this market. By knowing the trading unit, price quotation, tick size, delivery location, and other specifications, traders can make informed decisions and manage their positions effectively. It is important to stay updated with any changes or updates to the contract specifications by referring to the MCX website or consulting with a qualified commodities trading professional.
By Astrobulls research pvt ltd