Trading Markets:
Being pioneer commodity exchange of the country MEXM is willing to facilitate futures and spot segment of markets. The details are as follows:
Futures:
The Futures Market is primarily intended for Hedging and Speculation. Contracts in Futures Market results mostly in Cash Settlement and do not frequently result in delivery. The Clearing House arranges guarantee of trades executed on the exchange. Contracts those must be closed out during settlement date. Delivery contracts will be delivered and settled through the certified receipts. MEXM is having different delivery months in Products and as separate contracts for each commodity being traded at MEXM. All contracts are settled on daily basis at the daily settlement price till the final settlement of commodity on the expiry date.
Futures market consists of various book types wherein orders are segregated as Regular lot orders, Special Term orders, and Negotiated Trade Entries and Stop Loss orders depending on their order attributes. All orders have to be of regular lot size or multiples thereof.
Spot:
Spot market is intended to facilitate day to market pattern to offer centralize price discovery platform that creates possibility to eradicate artificial hike or increase in commodities by market cartel. Major focuses of spot market to disseminate price info from centralize market place and to make visible of geographical spread of commodities based on location. That helps to aware public about price pattern, price transparency and moreover to treat spot market instruments as investment vehicles. Although spot segment of market is not actually exchange traded products but we are offering as exchange managed products to create awareness about information of price transparency and to treat as investment vehicles.
Spot market normally settles on day to day basis. Spot contracts can be rolled over based on charge applicable by counter party on offered leverage.
E-contracts:
Electronic contracts are a form of hybrid contracts that can be developed from warrants, depository instruments, basket of commodities or single commodity too. This is purely an alternative investment vehicles for small level market participants who wish to participate in market but doesn’t hold capacity to enter in physical or financial settlement category of contract. E-contracts are basically focused on major volatile instruments and local economic instruments.