What are the contract specifications for lead trading on MCX?
This blog post will cover the contract specifications for lead trading on MCX in detail. If you’re new to trading or aren’t familiar with MCX, we’ll briefly introduce the exchange and give an overview of lead trading before diving into the nitty-gritty of its contract specifications.
Introduction to MCX
The Multi Commodity Exchange of India, or MCX, is India’s leading commodity derivatives exchange. It offers a platform for trading in commodities like metals, energy, and agricultural products, among others. The exchange is regulated by the Securities and Exchange Board of India (SEBI) and has a diverse participant base, including traders, producers, processors, and importers/exporters.
The exchange operates on an electronic trading platform, which allows for efficient price discovery and trade execution. MCX’s trading hours are 9:00 AM – 11:30 PM for all commodities except for a few agricultural products, which are traded only during specific hours.
Overview of Lead Trading on MCX
Lead is one of the metals traded on MCX. It is primarily used in batteries, cable sheathing, and other products. Lead trading on MCX is settled through a compulsory delivery mechanism, which means that contracts have to be settled by delivery of the underlying commodity.
The lead contracts on MCX are standardized in terms of quantity, quality, and delivery. Here’s a detailed look at the contract specifications for lead trading on MCX:
Contract Specifications for Lead Trading on MCX
1. Underlying Commodity
The underlying commodity for lead trading on MCX is 5 metric tonnes of lead, of 99.97% purity.
2. Price Quote
The price quote for lead contracts on MCX is in Rs per 1 kilogram.
3. Trading Hours
The trading hours for lead contracts on MCX are as follows:
- Monday to Friday: 10:00 AM to 11:30 PM
- Saturday: 10:00 AM to 2:00 PM
4. Trading Months
The lead contracts on MCX expire on the last working day of the contract month. The contract months are January, February, March, April, May, June, July, August, September, October, November, and December.
5. Maximum Order Size
The maximum order size for lead contracts on MCX is 700 metric tonnes.
6. Tick Size
The tick size for lead contracts on MCX is Rs. 0.05 per kilogram.
7. Delivery Centers
The approved warehouses for lead delivery on MCX are located in the following cities:
- Ahmedabad
- Bhiwandi
- Chennai
- Delhi
- Guwahati
- Hyderabad
- Indore
- Kolkata
- Mumbai
Conclusion
In summary, lead trading on MCX is a popular way of investing in this metal. The contracts are standardized in terms of quantity, quality, and delivery, making them accessible to a wide range of traders. By understanding the contract specifications for lead trading on MCX, you can make informed trading decisions and potentially benefit from the price movements of this commodity.
By Astrobulls research pvt ltd