Trading

1. What are the trading sessions and trading period of MCX?

2. What are the different terms in contract specifications?
3. What is base price?
4. What are the order matching rules?
5. Can a Member cancel the Pending orders, before normal trading hours?
6. Till what period I can keep the position open?
7. What is Open Interest?
8. How do I come to know margin utilization?
9. When does a member get suspended for trading?
10. When does a member go in Square Off mode?
11. What are remedial measures, if a member goes in square off mode?
12. What is Spread IOC order Functionality?
13. What is combination order entry functionality in TWS?
14. What is the meaning of abbreviation SPAN?
15. What is the function of SPAN?
16. How SPAN system works?
17. What is Span Margin computation methodology?
18. What is RPF file?
19. What is use of RPF file?
20. Why the Member ID/ user ID get locked and how to unlock it?
21. How do I get circulars of MCX?
22. How do I access daily reports?

1. What are the trading sessions and trading period of MCX?

The Exchange operates on all days except, Saturdays, Sundays and
Exchange specified holidays. The Exchange notifies a list of holidays for each
calendar year in advance.
Days

Timings

a) 10.00 a.m. to 5.00

p.m.

Commodities
All agricultural commodities other than
internationally

linked

agricultural

commodities as notified by FMC from time

to time.

Monday to
Friday

b) 10.00 a.m. to 11.30

p.m./ 11:55 p.m. *
(* on account of US day
light saving timings and
subject to FMC
approval)
c) 10.00 a.m. to 9.00
p.m./ 9:30 p.m. *
(* on account of US day
light saving timings and
subject to FMC
approval)

All non-agricultural commodities.

All

internationally

linked

agricultural

commodities as notified by FMC from time

to time.

2. What are the different terms in contract specifications?

Trading unit - The Trading unit is the minimum quantity for a contract that
can be bought or sold.

Quotation/ Base value - It is the Quantity units for which the prices are
quoted for trading.

Maximum order size - Maximum order size is the maximum no. of lots
that can be bought or sold in one Single order. The maximum order size
of each commodity is given in its contract specifications.

Tick Size - Tick size is the minimum price difference between the bids
and asks for a particular contract. The tick size is given in the contract
specifications.

DPR - Daily Price Limit i.e. circuit filter limit is the percentage of variation
allowed in the price of a commodity in a day with respect to the previous
days close price for the day. Circuit filter provides the maximum
range within which a contract can be traded during the day. Such circuit
filter is different for different commodities and has been specified in
respective contract specifications. Orders, which are beyond daily price
range, are rejected by the system.

3. What is base price?

Base price is a reference price used for launching/ commencing new futures
Commodity/Contract.
4. What are the order matching rules?
Orders are matched on price-time priority basis. Best buy order matches with the
best sell order. The best buy order is the one withthe highest price and the best sell
order is the one with the lowest price.
5. Can a Member cancel the Pending orders, before normal trading hours?
Yes. It can be done in order cancellation session (special session) before normal
trading hours. Timing for special session is from 09:45 am to 09:59 am, during
Mondays to Saturdays. The special session will allow Members to cancel their
pending orders only and will not allow them to modify/ place their orders.
6. Till what period I can keep the position open?
Members should refer to the circulars issued by the Exchange for different
commodities to know the last day to square off the position in respective
commodities.
7. What is Open Interest?
The open interest is the number of contracts outstanding in the market. It can be
called as outstanding positions at any point of time.
8. How do I come to know margin utilization?
Member can check his margin utilization from Member Admin Terminal. Members
receive alerts on utilizing margin of 60%, 75% and 90% against their margin
deposited with the Exchange.
9. When does a member get suspended for trading?
A member is suspended from trading,
a.
b.

In case a Member is not maintaining Base minimum deposit with the

Exchange.
Any other reason as per Byelaws, Rules and Business Rules of the
Exchange / FMC directives.

10. When does a member go in Square Off mode?

A Member goes in square off mode on breach of margin limit and MTM limit.
11. What are remedial measures, if a member goes in square off mode?
Member may increase additional base capital with the Exchange or may square
off his position depending on the reason of getting into square off mode.

12. What is Spread IOC order Functionality?

Spread Immediate or Cancel (IOC) order Entry window facilitates the user to enter
Buy and Sell orders simultaneously in two different maturity contracts of same
underlying. Placing a spread IOC order means placing a Buy or Sell order in Leg 1
contract and sell or Buy order in Leg 2 contract with common order Qty, Spread
IOC Order price, Client details and RL order type with IOC validity.
13. What is combination order entry functionality in TWS?
Combination Order refers to 2 Leg and 3 Leg orders. Combination Order allows
the user to enter 2 or 3 IOC orders simultaneously in two or three different
contracts of the same or different underlying with the purpose that the entered
multiple orders get matched either fully or partly but in Order Quantity proportion in
which these contracts are entered in Combination Order entry.
The fully or partly unmatched Combination orders get cancelled immediately. Each
combination order gets converted into 2 or 3 normal orders depending upon the
legs entered. All the Leg1, Leg2 and Leg3 orders shall have different order
numbers and a Common Distinct Reference Number for each leg to identify that
these orders have been generated through a Combination Order. Each leg contract
must be a different contract.
14. What is SPAN?
The abbreviation of SPAN is Standard Portfolio Analysis of Risk. MCX has a
SPAN based margining system for the purpose of computing and levying the
margins on all the contracts available for trading.
15. What is the function of SPAN?
SPAN constructs scenarios of probable changes in prices and volatilities in order to
identify the largest loss a portfolio might suffer from one day to the next. It then sets
the margin requirement at a level sufficient to cover this one-day loss.
16. How does the SPAN system work?
The Initial Margin is computed using SPAN, which is portfolio based margin
System. SPAN identifies overall risk in a portfolio of contracts for each client of a
member. With the use of SPAN Margin software one can identify the largest loss
for a portfolio which might happen due to the changes in prices and market
volatility from one day to the next.
17. What is Span Margin computation methodology?
The total margin requirements for a member for a portfolio of contracts will be
computed by SPAN. SPAN will add up the Scanning Risk Charges and the Intra
commodity Spread Charges. Total Initial Margin requirement is equal to SPAN Risk
Requirement, less Inter-commodity and intra-commodity spread credits.

18. What is RPF file?

The abbreviation of RPF file is Risk Parameter File.
19. What is use of RPF file?
The calculations of SPAN are executed by the Exchange/ Clearing Corporation and
the result of these calculations are called Risk arrays. Risk arrays, and other
necessary data inputs for margin calculation are provided to the members in a RPF
file.
20. Why the Member ID/ user ID get locked and how to unlock it?
A Member ID/ User ID gets locked, if the Member/ user enters wrong password for
more than 5 times. If the Member has Admin Terminal, they can reset their User ID
password through Admin Terminal. But for resetting Member ID password, Member
has to send a request to the Exchange on letter head of the registered entity duly
signed by the authorized signatory.
21. How do I get circulars of MCX?
Members can download circulars issued by the Exchange from Extranet (SFTP)
server as well as MCX website i.e. www.mcxindia.com.
22. How do I access daily reports?
Members can download daily reports from Extranet (SFTP) server.

Note: For further questions you can contact Customer Support Team at 022-66494040