Questions iCommunity


Community User Posted on 05:48pm 24-Nov-2020

How to trade in commodity ?

  • ICICIdirect Executive Thank you for the query. We would like to inform you that as a customer of ICICIdirect, now you can trade on commodities futures on MCX. It comes with a comprehensive tracking cum risk management solution to give you enhanced leveraging on your trading limits.

    In Commodities Future trading, you take buy/sell positions in commodity Future contracts expiring in different months. If, during the course of the contract life, the price moves in your favor (rises in case you have a buy position or falls in case you have a sell position), you make a profit. In case the price movement is adverse, you incur a loss.

    To take the buy/sell position commodity Futures, you need to have a certain amount of margin to place order(s). With futures trading, you can leverage on your trading limit by taking buy/sell positions much more than what you could have taken in cash segment. However, the risk profile of your transactions goes up.

    In Commodity segment I Place Order page, you need to define the Underlying. On clicking on Select contract , the whole list of contracts available in the given stock code expiring in different months would be displayed. Depending on your interest, you can select one of the contracts by clicking on buy / sell link. You need to define the order type i.e. market or limit, Order Validity i.e. Day or IOC (Immediate or Cancel) or GTC (Good Till Cancelled) or GTD (Good Till Date), order validity period i.e. date for GTD, limit price and stop loss trigger price if any.

    For placing order: Log into your account (new website) > Commodity > Place Order

    For more details: Log into your account (new website) > Commodity > Click on [+] icon > FAQs

    10:58am 25-Nov-2020