Category Archives: Blog

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Charges in Zerodha

Zerodha is a popular online brokerage firm in India that offers trading services in the stock market. The charges associated with trading securities through Zerodha include:

  1. Brokerage charges: Zerodha charges a flat brokerage of Rs 20 or 0.03% (whichever is lower) per executed order for equity delivery trades and equity intraday trades.
  2. Securities Transaction Tax (STT): Zerodha charges the applicable STT on all equity trades as per the government norms.
  3. Goods and Services Tax (GST): Zerodha charges GST of 18% on brokerage, transaction charges, and other charges
  4. Demat account charges: Zerodha charges a nominal fee of Rs 30 per month as Demat account maintenance charges, which is waived off if the trading turnover is more than Rs 20 Lakhs in the previous calendar month.
  5. Clearing and Settlement charges: Zerodha charges a clearing and Settlement charge of Rs 10 per trade, which is levied by the stock exchange and the Depository participant (DP).
  6. Annual maintenance charges: Zerodha charges an annual maintenance charge of Rs 300 per annum, which is waived off if the trading turnover is more than Rs 20 Lakhs in the previous calendar month.
  7. Call & Trade charge: Zerodha charges a nominal fee of Rs 20 per executed order for equity delivery trades and equity intraday trades if the order is placed through call & trade.

Please note that the charges and fees associated with trading securities through Zerodha may change over time, so it is important to check with the company for the most up-to-date information.


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What is the lot size of crude oil in MCX

What is the lot size of crude oil in MCX?

The lot size for crude oil futures contracts traded on the MCX (Multi Commodity Exchange) in India is 10 metric tons. This means that each contract represents 10 metric tons of crude oil.

The value of one lot of crude oil futures on the MCX can be calculated by multiplying the price of the futures contract by the lot size. For example, if the price of crude oil is Rs. 4000 per metric ton, the value of one lot of crude oil futures would be Rs. 40,000 (4000 x 10). It’s important to note that the lot size and margin requirement for trading crude oil may change from time to time and you should always check the updated information from the MCX website or from your trading platform before placing any trade.

How is MCX margin calculated?

The margin requirement for trading crude oil futures on the MCX (Multi Commodity Exchange) in India is calculated using the SPAN margin method. SPAN (Standard Portfolio Analysis of Risk) is a system that calculates the margin requirement for futures and options contracts based on the volatility of the underlying instrument.

The SPAN margin method considers various market risk parameters such as the price of the underlying instrument, volatility, and open interest. The margin requirement is determined by taking into account the potential loss that could occur in the worst-case scenario, also known as the extreme loss scenario.

The margin requirement for crude oil futures on the MCX will be determined by the exchange and will vary depending on the current market conditions. The margin requirement is usually expressed as a percentage of the total contract value.

It’s important to note that the margin requirement for trading crude oil futures on the MCX may change from time to time and you should always check the updated information from the MCX website or from your trading platform before placing any trade.


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MCX Crude Oil Price Calculated

How is mcx crude oil price calculated?

The price of crude oil traded on the MCX (Multi Commodity Exchange) in India is determined by the forces of supply and demand in the market. The MCX is a commodity exchange where futures contracts for crude oil are traded.

The price of crude oil is influenced by a variety of factors, including global supply and demand, geopolitical events, and changes in the value of the U.S. dollar.

When demand for crude oil is high, the price tends to rise, as buyers are willing to pay more for the commodity. Conversely, when demand is low, the price tends to fall, as there are fewer buyers willing to pay a higher price.

The cost of production, taxes, transportation and refining also contribute to the price of crude oil.

It’s important to note that the price of crude oil is also subject to speculation, which can cause short-term fluctuations in the market.

It is also important to note that crude oil prices on the MCX are influenced by the prices of Brent Crude and WTI Crude, which are the two benchmark crude oil prices and are used as reference for determining the prices of crude oil globally.


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difference between future and equity

What is difference between future and equity?

A future is a financial contract that obligates the buyer to purchase an asset, or the seller to sell an asset, at a predetermined price and date in the future. Futures are typically used for commodities and currencies.

Equity represents an ownership stake in a company, and can take the form of common or preferred stock. Equity holders are entitled to a portion of the company’s profits and assets, and have voting rights on certain corporate matters. The value of an equity investment can increase or decrease based on the performance of the company and the overall stock market.

In summary, a future is a financial contract for buying or selling a commodity or currency at a future date, while equity represents ownership in a company.

 

It depends on the individual’s investment goals and risk tolerance. Futures and options (F&O) are derivatives products that allow investors to speculate on the future price of an underlying asset, such as a stock or commodity. They can be used for both hedging and speculative purposes. Equity refers to the ownership of stocks or shares in a company. Investing in equity can provide the potential for long-term growth, but it also carries more risk than investing in fixed-income securities such as bonds. It’s important to evaluate your investment goals and risk tolerance to decide which type of investment is best for you.


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crude oil to trade in MCX option

Crude oil is one of the commodities that is traded on the Multi Commodity Exchange (MCX) in India. MCX offers futures trading in crude oil, as well as options trading in crude oil futures. This means that traders can buy and sell contracts for the future delivery of crude oil, and they can also buy and sell options contracts on those futures.

Options trading in crude oil futures on MCX can be used as a hedging tool for price risk management and also as a speculative tool to profit from price movements. However, options trading can be complex and carries a significant level of risk, so it is important to have a good understanding of the market and the products before participating. It is always recommended to consult with professional and registered financial advisor before making any investment decisions.

 

How do I trade options in MCX?

Trading options on the Multi Commodity Exchange (MCX) involves the following steps:
  1. Open a trading account with a broker: To trade options on MCX, you need to open a trading account with a broker who is a member of the exchange. You will need to provide your personal and financial information to the broker, and go through the account opening process.
  2. Fund your account: Once your account is open, you need to deposit funds into your account to cover the margin requirements for trading options.
  3. Research the market and select options to trade: Before placing a trade, it is important to research the market and understand the underlying asset (in this case, crude oil), as well as the options contract you are considering trading.
  4. Place an order: Once you have selected the options contract you want to trade, you can place an order with your broker. You will need to specify the quantity, the price, and the expiration date.
  5. Monitor your trade: Once your order is filled, you will need to monitor your trade and make adjustments as necessary. This includes adjusting stop-loss orders, and taking profits if the trade goes in your favor.
  6. Close the trade: Once you are ready to close the trade, you will need to place an order to sell the options contract.

It is important to note that options trading is complex and carries a significant level of risk, so it is important to have a good understanding of the market and the products before participating. It is always recommended to consult with professional and registered financial advisor before making any investment decisions.


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robot trading legal in India

Is robot trading legal in India?

The legality of robot trading in India depends on the specific circumstances and regulations in place. Generally, the use of automated trading systems, including robots, is allowed in India as long as they comply with the regulations set forth by the Securities and Exchange Board of India (SEBI). However, it is important to note that there may be additional regulations or laws that apply to specific types of trading or industries. It’s recommended to check with the relevant regulatory bodies before starting any such activity.

Is trading with a robot profitable?

Trading with a robot, also known as algorithmic trading, can be profitable if the robot is properly designed and implemented. The use of robots in trading can increase efficiency and reduce the potential for human error. However, it is important to note that the profitability of a trading robot depends on a variety of factors, such as the market conditions and the specific trading strategy being used.

While a robot can provide an advantage in some situations, it’s crucial to understand that the markets are dynamic and ever-changing, and there’s no single trading strategy that works in all market conditions. Profitable trading robots typically incorporate various factors such as technical and fundamental analysis, risk management, and the ability to adapt to changing market conditions.

Ultimately, it’s important to have a realistic expectation of the potential profitability of a trading robot and to remember that past performance does not guarantee future results. It’s also vital to conduct thorough research and testing before using a robot in live trading.

 





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Is crude oil commodity volatile?

Crude oil is a commodity that can be subject to significant price volatility. The price of crude oil can be affected by a wide range of factors, including global supply and demand, geopolitical events, natural disasters, and currency fluctuations. Additionally, the price of crude oil can be affected by speculation and changes in the value of related financial instruments, such as futures contracts.

Factors that can lead to an increase in crude oil prices are:

  • Political instability in oil-producing countries
  • Natural disasters that disrupt production or transportation
  • Increase in global demand
  • Decrease in production levels
  • Economic growth
  • Currency fluctuation

Factors that can lead to a decrease in crude oil prices are:

  • Increase in production levels
  • Economic downturn
  • Increase in alternative energy sources
  • Decrease in global demand

In summary, crude oil is a commodity that can be subject to significant price volatility due to a wide range of factors that affect global supply and demand.


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