From Monday we would introduce OrderFlow charts for Gold ( Larger Lot) and Copper in the trading room.
There are 2 reasons to introduce these 2 new instruments :
1) Gold is traditionally considered a “safe haven” trade. It tends to go up when the broader equity market sees a bigger risk perception or an unsafe environment.In some ways it’s functio is similar to the VIX which is inverse to market prices. hence tracking this live will give us an idea of the broader market or smart money moving in or out of equities.
2) Copper tends to go in the same direction as equities as it has a direct bearing on industrial demand. Hence an “Up” copper would mean an “Up” stock market
These are broader inter market associations and they tend to break down from time-to- time, but it will be useful to track these prices live.
We will take prices off the MCX which trades from 10.00 am to 11.30 pm, Monday to Friday and even Saturdays from 10.00 upto 2.00 pm.
Gold :
The Gold traded on the MCX comes in 2 sizes. The larger lot would give you 100/- for every 1 point move. This requires an intra day margin of 25000/- the same as a NF trade. However one has the option of trading the smaller lot which will give you 10/- for every point move.This can be even carried for a margin amount of less than 15000/-.
Most intra day trades on the MCX can be done with margins less than 10000/- per lot.
Copper :
A copper intra day trade requires a margin of under 10000/- per lot and every point move is equivalent to 1000/-. Thus 3 points can easily fetch you 3000/- per lot.
Copper futures can be carried with amounts equivaent to 15000/-.
These limits are also dependent on the relationship with your broker and most brokers would be very flexible as long as your trading shows a successful pattern.
