Question 1

What are market timing for Commodity Derivatives Trading

Accepted Answer

Process with Table

Question 2

What is the market timing for Commodity Derivative Trading?

Accepted Answer

Below are market timings for Commodity Derivatives Trading.

Agricultural(Agri)-MCX 09:00 AM to 11:30/11:55 PM*

NCDEX 10:00 AM to 05:00 PM. Internationally link Agri- 09:00 PM

Question 3

How can I open Commodity Derivatives Account with Axis Direct?

Accepted Answer

Any Axis Direct customer can avail Commodity Derivatives facility through a simple one-time online registration process by clicking here and within 48 hours you will be provided rights to trade in commodity derivatives. In case, you are not an existing Axis Direct customer, you can open your account by clicking here

Once the commodity rights are enabled, you can use the same login credentials of Axis Direct and access commodities platform with streaming market watch and real-time market information.

Question 4

Will I need to provide any additional KYC to open Commodity Derivatives Account?

Accepted Answer

The one-time online registration process does not require additional physical documentation,if equity derivative segment is active.Incase of equity derivatives segment is inactive any one document is required :

1)Salary Slip latest 2) Form 16 3) ITR return file 4)Demat holding statement

Question 5

Can I open only Commodity Derivatives Account?

Accepted Answer

To open commodity account with ASL ,you need to open equity cash account along with Commodity account.

Question 6

Can NRIs open Commodity Derivatives Account with Axis Direct?

Accepted Answer

No. NRIs are not allowed to open Commodity Derivatives Account.

Question 7

What are account opening charges / brokerage charges for Commodity Derivatives Trading?

Accepted Answer

For an existing AxisDirect customer, there are no additional Account Opening charges for Commodity Derivatives Trading. As an introductory offer, till 31st March 2024, FLAT 0.03% brokerage (or Rs 25 per order whichever is higher) will be charged for trades in future contracts whereas Rs 50. per lot will be charged for Option trades.

Question 8

Are all Derivative (Future & Options) contracts available for trading through Axis Direct?

Accepted Answer

No, due to probable illiquidity in far month contracts, only near (1st) and middle (2nd) month contracts are available for trading for most of the underlying contracts.

Question 9

What does Spread mean?

Accepted Answer

This is the difference between the Futures prices of a particular commodity over different tenures. For example, the Futures price of a commodity may be Rs 100 for the 1-month contract and Rs 110 for the 2-month contract. This difference is called the Spread.

Question 10

What will happen, if customer do not square off Intraday Futures position on the same day?

Accepted Answer

Customer will have to square off all intraday open positions as per the below market timings on the same day itself, failing which Axis Direct will square off the Intraday Open positions, on best effort basis.

Question 11

Which trading platforms can I use to trade in Commodities?

Accepted Answer

You can place commodity trades through Ring app, web on www.axisdirect.in (either on desktop or laptop) and/or through the centralized dealing desk on 022-42274564 / 022-42274597.

Question 12

Will Axis Direct inform before squaring off Derivative (Futures & Options) open positions for shortfall in margins / mark to market losses?

Accepted Answer

Yes. Axis Direct informs regarding margin shortfall and mark to market losses through email but exceptionally if the situation so arises then as a risk containment measure, open position(s) can be squared off even without informing the customers.

Question 13

Are all contracts allowed for intraday Trading

Accepted Answer

Apart from Naturalgas, Methane oil, Cotton and CPO all contracts are allowed in intraday.

Question 14

Can I place trade in all commodity exchanges?

Accepted Answer

Currently, Commodity Derivatives Trading is enabled only for Multi Commodity Exchange of India Ltd (MCX) and National Commodity and Derivative Exchange' (NCDEX) at ASL.

Question 15

Which commodities I can trade in?

Accepted Answer

This predominantly depends on the exchange you are trading in. In India, commodity trading is predominantly done on two exchanges: Multi Commodity Exchange (MCX) and National Commodity & Derivatives Exchange (NCDEX). The following commodities are actively traded in these two Exchanges: For a list of newly listed commodities, please visit www.mcxindia.com and www.ncdex.com

Question 16

Which Products are available for Commodity Derivative Trading through Axis Direct?

Accepted Answer

The products offered by Axis Direct for Commodity Derivative Trading are Intraday & Carry Forward

Question 17

What do you mean by Rolling over?

Accepted Answer

This is when you want to close your current Contract and entering a similar contract due for another month.

Question 18

What is Tender Period?

Accepted Answer

The tender period would be the last 5 trading days (including expiry day) of the contracts.Trading day will be based on availability for trading of the respective commodity on a trading day and excluding special sessions like Muhurat Trading day.

In case ,client is not willing to take or give physical delivery of commodity, he/she needs to square off or rollover the open position on T-1 day before Tender period to avoid physical delivery of commodity being marked during tender period.

Question 19

What is Mark-to-Market (MTM)?

Accepted Answer

Mark-to-Market is a process by which the open positions in commodities are revalued on intraday basis taking into consideration the Latest Traded Price (LTP) of the commodities. On the day you enter a futures contract, Mark to Market or MTM is the difference between your entry value and the day’s closing price. In the case of a carried forward position, it is the difference between the day’s market price and the previous day's closing price.

If the MTM % falls below the threshold% (65% to 70%) of the net margin deposit available with Axis Direct, then the customer needs top up the funds immediately, failing which Axis Direct will square off the open position.]

Question 20

Is there an option to take physical delivery through Commodities Trading in Axis Direct?

Accepted Answer

Yes, as of now you can take Physical delivery of Commodities through ASL in MCX exchange only.

Question 21

How do I hold funds for trading?

Accepted Answer

To start trading kindly hold funds from Menu- Online Fund Hold-Commodity- Fund Hold/Release.

Question 22

What Margin will be charged for Commodity Derivative Trading through Axis Direct?

Accepted Answer

For Intraday/Carry Forward product - Exchange defined margin + Span Margin + Extreme Loss Margin + other regulatory margins will be charged.

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