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
ICICIdirect Executive Thank you for the query. We would like to inform you that a Stop loss order allows the client to place an order which gets activated only when the market price of the relevant security reaches or crosses a threshold price specified by the investor in the form of Stop Loss Trigger Price . When a stop loss trigger price (SLTP) is specified in a limit order, the order becomes one which is conditional on the market price of the contract crossing the specified SLTP. The order remains passive (i.e. not eligible for execution) till the condition is satisfied. Cloud Order eligible for execution by being taken up in the matching process of the exchange) and then on behaves like a normal limit order. It is used as a tool to limit the maximum loss on a position.
Stop Loss Buy Order
A short sells 2500 Quantity (1 lot = 2500 qty) of Copper contract at Rs 325 in expectation that the price will fall. However, in the event the price rises above his buy price A would like to limit his losses. A may place a limit buy order specifying a Stop loss trigger price of Rs 345, a limit price of Rs 350 and last traded price 340. The stop loss trigger price (SLTP) has to be between the last traded price and the buy limit price. Once the market price of Copper breaches the SLTP i.e. Rs 345, the order gets converted to a limit buy order at Rs 350.
Stop Loss Sell Order
A buys 2500 Quantity of Copper contract at Rs 325 in expectation that the price will rise. However, in the event the price falls, A would like to limit his his losses. A may place a limit sell order specifying a Stop loss trigger price of Rs 305 , a limit price of Rs 300 and last traded price is at 310 The stop loss trigger price has to be between the limit price and the last traded price at the time of placing the stop loss order. Once the last traded price touches or crosses Rs. 305, the order gets converted into a limit sell order at Rs. 300.
Please note that in a buy order the SLTP cannot be less than the last traded price. This is treated as a normal order because the condition that the last traded price should exceed the stop loss trigger price for a buy order is already satisfied. Similary, in case of a stop loss sell order the SLTP should not be greater than the last traded price for the same reason.
ICICIdirect Executive Thank you for the query. We would like to inform you that now invest in Gold in a smarter way through Gold ETF. Buying Gold ETF is purchasing gold in electronic form. You buy them just like you buy an online stock of any company.
Path: Log into your account > Equity > Place Order
Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold. These bonds are issued by RBI on behalf of Government of India and are superior alternative to holding gold in physical form.
Investors subscribe to SGBs during primary issuance by paying the ongoing price* of Gold. Upon allotment, these bonds are securely held in demat form eliminating risk and cost of storage. On Maturity, Investors receive redemption proceeds basis prevailing price* of Gold. Thus, SGBs offer Gold linked returns to investors. Over and above Gold returns, investors receive fixed interest of 2.50% p.a. on investment value.
Though the tenure of the bond is 8 years, each tranche is listed on stock exchange and Investors can liquidate** their holdings before maturity. However, if held to maturity, capital gains tax^ arising on redemption to an individual is exempted.