MCX to begin mock trading for bullion, base metals futures from Thursday

Mumbai: Ahead of the commercial launch of futures trading in bullion and base metals, the country’s largest commodity exchange MCX will conduct mock trading of the same beginning Thursday till July 31.

Consequently, futures trading in underlying constituents of the index will also be conducted, the exchange said in a statement on Wednesday.

The exchange will conduct mock trading on indices constituents of gold, gold mini, silver, silver mini, copper, and zinc between July 9 and 30, it said, adding trades resulting from mock trading will not attract any obligation for pay-in and pay-outs.

The exchange will launch MCX iComdex bullion index futures and MCX iComdex base metals index futures after the mock trading is completed.

The mock trading sessions will be held during 3.30-6.30 pm on all weekdays, except Fridays.

The exchange has set a base price limit of 4 per cent and whenever the limit is breached, the relaxation will be allowed up to 6 per cent without any cooling off period in the trade.

In case the daily price limit of 6 per cent is also breached, then after a cooling off period of 15 minutes, the daily price limit will be hiked to 9 per cent. And in case this is also breached, the price limit may be further relaxed in steps of 3 per cent and an initial margin minimum 5 per cent will be kicked in.

The bourse also announced a daily prize of Rs 5,000 for investors who punch in maximum trades during mock trading sessions.