To begin trading in commodities, all you have to do is walk into any of the numerous Emkay branches/franchisees spread across the country and fill up the client registration form. Open the requisite banking and trading accounts, deposit the requisite upfront margin and start trading in commodity futures!
Before you begin trading or placing an order for any commodity, you need to have margin money in your account. The margin is around 5-10% for any commodity. You also need to take care of the daily mark-to-market margin to avoid any adverse movement in the commodity prices as per the exchange rules.
- Place your order
Contracts are available on the whole range of products offered on MCX and NCDEX. Choose the commodity on which you wish to purchase contracts, the exchange, the expiry date and place an order.
- To see the expiry dates on contracts available, choose a commodity and an exchange.
- Square off your position or settle on the expiry date
You have the option to square off your position by placing an offsetting/ cover order before the contract expires. Alternatively, you can settle your position in cash or by giving/taking delivery. Although the regulatory body, the Forward Markets Commission (FMC), does not levy any transaction charges as of now, the respective commodity exchanges have levied transaction charges. Transaction charges are in the range of Rs. 6 to Rs. 10 per/lakh/ per contract, which may differ for each commodity.
Stamp Duty Rates:
The indicative stamp duty rates in Maharashtra are as under:
||Stamp Duty Rate
||Rs. 1 for every unit of 1kg of gold or part thereof Rs. 1 for every unit of 50kg of silver or part thereof
||Rs. 1 for every 10,000kg (100 quintal or 10MT) of oilseed or part thereof
||Yarn / Non-mineral Oils/Spices of any kind
||Rs. 1 for every 10,000kg or part of thereof the value
||Rs. 1 for every unit of transaction of 4,500kg or part thereof