ramasubbaiah chowdam
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Aluminium

Ramasubbaiah Chowdam at 03:06 PM - Apr 24, 2019 ( ) Views: 146

It is stated in Mcxindia website that Aluminium is on "Compulsary Delivery". Is it compulsory to take delivery of the commodity even if we trade in the commodity on intraday  i.e. "MIS"  basis or on "Cover Order" (intraday transaction terms used by Zerodha) basis. Please clarify as our members are giving calls on Aluminium etc. and declaring profits. Thanks in advance.


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Ramasubbaiah Chowdam at 11:42 AM - Apr 25, 2019 ( )

Thanks madam for your clarification. God Bless You.

Sarbani Bhattacharjee at 07:58 AM - Apr 25, 2019 ( )

Mr.Ramasubbaiah,  please understand the concept of compulsory delivery first.

Compulsory Delivery means that on expiry of the contract if you donot square off, then the difference of the contarct price on expiry and your buying/seling price equivalent amount of that Commodity needs to delivered physically.Previously it used to be settled by paying the difference amount in CASH.

Now comming to Intraday trading,  it depeneds on broker to broker how they make their system to avoid such situation.Some local brokers donot restrict trades even on last trading day till 5:30 PM.

Some brokers stops getting fresh positions opened 3 days before expiry ,  some allows trading but only with NRML order, no CO  or MIS is allowed.So it depeneds from broker to broker.

So compulsory delivery has nothing to do with intraday trading of that contract.

If you broker stops you to make fresh positions in Aluminium then jump to next contract and trade as per the equivalent price advised for present contract.

Sarbani Bhattacharjee at 07:58 AM - Apr 25, 2019 ( )

Mr.Ramasubbaiah,  please understand the concept of compulsory delivery first.

Compulsory Delivery means that on expiry of the contract if you donot square off, then the difference of the contarct price on expiry and your buying/seling price equivalent amount of that Commodity needs to delivered physically.Previously it used to be settled by paying the difference amount in CASH.

Now comming to Intraday trading,  it depeneds on broker to broker how they make their system to avoid such situation.Some local brokers donot restrict trades even on last trading day till 5:30 PM.

Some brokers stops getting fresh positions opened 3 days before expiry ,  some allows trading but only with NRML order, no CO  or MIS is allowed.So it depeneds from broker to broker.

So compulsory delivery has nothing to do with intraday trading of that contract.

If you broker stops you to make fresh positions in Aluminium then jump to next contract and trade as per the equivalent price advised for present contract.

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