Square off process in commodity market
Commodity Square off Process
1. Intraday Square off
- Intraday Square off At 04:30 P.M. (Market closes at 05:00 P.M.). For Agri Commodities other than those open for trading till Evening.
- Intraday Square off At 08:30 P.M. or 09:00 P.M.in case of sun-outage. (Market closes at 09:00 P.M. or 09:30 P.M. respectively). For International Agri Commodities those which remain open for trading till Evening.
- Intraday Square off At 11:00 P.M. or 11:25 P.M in case of sun-outage. (Market closes at 11:30 P.M. or 11:55 P.M. respectively) For All Other Commodities.
2. Auto Square off System (MTM based)
All positions (Intraday & or Delivery) shall be squared-off as soon as MTM Loss reaches 50% of the available Net worth.
3.Margin Squared off (Shortage)
Positions which do not have sufficient funds can be squared off any time at the discretion of our RMS desk. There may or may not be a margin calls or intimation from our RMS desk. Positions would be squared off proportionally by the risk team to bring down your margin shortfall.
Commodities with compulsory delivery will be closed a day before their respective delivery intention periods.We do not allow clients for Physical Delivery Positions. All the deliverable contracts of MCX enter “Tender Period positions” as mentioned by exchange from time to time.Clients positions will therefore be Squared OFF one day prior to the start of the “Tender Period” of the contract. No positions will be allowed to carry over in Tender Periods.Please note, the contracts will be blocked for creating a fresh position 1 day prior to Tender period start.
Square off Process
Risk team can initiate square off in 9 scenarios. All scenarios are explained below: Scenario.1. T+6 Debit Square Off (Daily 3.15 pm) T+6 (T being Trading Day) square off is initiated for all clients who have purchased NON-APPROVED Stocks. All stocks ...
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