Commodity Market Mechanism In Commodity Exchange

In both this exchange commodity is traded on its future contract. To understand the mechanism of commodity derivative we need to understand first what are derivative contract. Derivative are the financial instrument whose value is derived from an underlying asset. this is the 1 month expiry contract that gives an opportunity to differenttrades to deliver the underlying asset on or before the fixed expiry date. here underlying asset is the spot market price of a commodity whose future contract you buy or sell.
In MCX and NCDEX different commodities are traded with a fixed lot size that is the minimum quantity you can buy or sell. for which you just have to paya margin amount this is:
Gold – 100 lot size

Silver – 30

Cooper – 1000

Zinc, Aluminium & Lead – has 5000 lot size

Nickel – 250

Crude Oil – 100

Natural Gas – 1250
Also in Agri commodities like Soybean, Chana, TMC, Guarseed has different lot size that is traded on NCDEX. In MCX. If you buy or sell 1 lot of October gold contract means you are purchasing 1kg of gold for which you have to pay just a marginal amount. In future contract delivery of Commodities or final settlement held on or before the expiry of the contract.
In the market for buyer one seller is required like if you buy 1 lot an there will be a seller who want to sell 1 lot. here Exchange work as mediator between buyer and seller of the contract. because you don’t know to whom you are buying and seller doesn’t know to whom he is selling. here Exchange follows a contract specified, in which information, quality standards, quantity, all are decided by the Exchange. and both buyer and seller Pay margin to exchange.
When you execute that contract means buyer accepts to receive delivery by paying the full amount and seller accept to deliver the underlying asset, on that time Exchange revert the margin amount to both buyer and seller.
In case if you didn’t want to accept the delivery you can square off your position by taking an opposite position, Means if you buy 1 lot,you can sell to another person to square off it. through below the image you can very well understood the Commodity Market Mechanism.
Like Commodity Trading Tips or in cash, Forex, future and option tips an individual can also receive a recommendation in the currency market. According to his individual risk appetite
because, in currency derivative a individual can trade with the minimum investment as compare to the equity, commodity and its derivative.

Using Stainless Steel in Coastal Areas

Well the simple answer isn’t any, no longer simply. Coastal regions are one of the harshest environments with excessive tiers of airborne salt, excessive winds and plentiful seagull presents that once applied to stainless-steel products will begin to devour away on the surface and tarnish the end if no longer regularly maintained.

Are there exceptional types of stainless that may be used?

Absolutely. The principal component to make sure is that your supplier is the usage of G316 chrome steel (marine grade) and now not G304 fabric that should handiest be used internally.

There are most important surface finishes of stainless-steel; satin (brushed) and replicate (brilliant) polished.

The satin finish stainless material has a brushed ‘grain’ for you to gather salt and contaminants that can start to deteriorate the metallic. Satin polished stainless steel can absolutely be utilized by the coast, as lots of our clients do, however honestly requires a higher level of ongoing cleaning and renovation.

Mirror polished stainless but is a clean end, with out a grain, that gives more safety towards the coastal elements. The replicate polished alternative is greater highly-priced but might require much less protection than a brushed end opportunity.

Will stainless material rust in coastal areas?

Stainless metal depends on its passive layer for corrosion resistance. This is a thin chromium oxide layer formed on its surface while chromium is present at 10.5% or above. The underlying steel isn’t corrosion resistant. The passive layer forms spontaneously on a clean surface however can be damaged with the aid of iron contamination, airborne debris and specifically chlorides.

Therefore, it’s far vital that stainless metal is difficulty to an ongoing protection and cleaning program. Remember it’s far stainLESS, no longer stainFREE.
What form of cleaning merchandise should be used?

The most important recognition is to smooth off any salt and contaminants from the surface of the metal which may be carried out with any primary cleaning agent, which include soapy water. More sophisticated, expert merchandise are to be had for the cleaning of stainless-steel but may also simplest be required if the tea-staining is huge-unfold or stubborn to eliminate.

The primary rule is simple, look after the stainless-steel with regular cleansing as prevention is continually less complicated (and less expensive) than the remedy.

So could you recommend against the use of stainless metals by way of the ocean?

No, under no circumstances. If budget lets in, opt for a reflect polished finish but the predominant piece of statistics to be gained right here is that you can’t in reality buy a stainless product and go away it in area, in particular in coastal areas without cleaning it – Just clean it down as frequently as you smooth your home windows and doorways. Look after your chrome steel and it’s going to appearance extremely good for decades to come back.