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Q: How are MCX contracts settled?

Commodity Futures At Tradejini, commodity futures contracts can either be cash or physically settled. Notably, we allow cash settlement, and it's important to note that physical settlement is not an option with us. In case positions are not closed before the start of the delivery period, Tradejini may square them off. For each auto-squared-off order, a charge of ₹20 plus 18% GST will be applicable. Commodity Options In the world of commodity options at Tradejini, all In The Money (ITM) contracts are devolved into their respective futures contract of the current month on the day of expiry. If you hold an ITM contract until expiry, be aware that it will require margins equal to the futures contract to facilitate its devolvement on the next trading day. Example Scenario Let's take an example scenario Gold is currently at 71500 levels, and you hold a GOLD 19JAN 71000 CE ITM option contract. On the expiry day, this contract will devolve into GOLD 19FEB FUT, with a buy average of 71000. However, if the exchange cannot match the contract with a counterparty, the ITM options trade will be cash-settled instead of devolving into a futures contract.

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How are MCX contracts settled?

Commodity Futures

At Tradejini, commodity futures contracts can either be cash or physically settled. Notably, we allow cash settlement, and it's important to note that physical settlement is not an option with us. In case positions are not closed before the start of the delivery period, Tradejini may square them off. For each auto-squared-off order, a charge of ₹20 plus 18% GST will be applicable.

Commodity Options

In the world of commodity options at Tradejini, all In The Money (ITM) contracts are devolved into their respective futures contract of the current month on the day of expiry. If you hold an ITM contract until expiry, be aware that it will require margins equal to the futures contract to facilitate its devolvement on the next trading day.

Example Scenario

Let's take an example scenario Gold is currently at 71500 levels, and you hold a GOLD 19JAN 71000 CE ITM option contract. On the expiry day, this contract will devolve into GOLD 19FEB FUT, with a buy average of 71000. However, if the exchange cannot match the contract with a counterparty, the ITM options trade will be cash-settled instead of devolving into a futures contract.

2.How is the disparity, parity between MCX prices and International prices for gold, silver, aluminium and zinc calculated?

3.What does clubbing of open position limit on MCX mean?

4.What does the devolvement of ITM commodity options mean, and what impact does it have on the positions?

5.What is devolvement for commodity option and how does it work?

6.Which commodity options contracts can be traded on Tradejini?

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