Equity
Yes, you can modify or cancel an order any time before execution. You can do this by accessing the Order Book page where you have the option to modify or cancel the order. You would not able to modify or cancel order if order has been sent to exchange & confirmation is awaited.
Yes, you can submit a Cheque but buying limit would be provided to your trading account once the same is cleared & confirmed by the bank.
Yes, you can transfer funds online. There are 21 banks available on trading portal through which you can instantly transfer fund to your trading account if you have bank account with any of the mentioned banks. You need to register bank account, in your name, with us for availing this facility and multiple banks can be added. For list of available banks
You get instant trade confirmation on your trading portal. Apart from this, a soft copy of Contract note is sent to your registered mail id. You will also receive an SMS of your net obligation, at the end of trading day, if you have provided us your mobile number. You can also check your online back office, round the clock, to track trading done by you.
Once account is opened, MLB dispatches a welcome kit to its customers which contains Welcome Letter. so that you do not face any problem while operating your trading account.
MLB also provides Call-N-Trade services to its customer so that customer can place order if he/she does not have access to internet.
MLB also provides Call-N-Trade services to its customer so that customer can place order if he/she does not have access to internet.
You can trade on NSE, BSE, MCX, NCDEX and on single platform
At SMC, we are always happy to help our customers. You can contact our online helpdesk by any of the following ways
Mail us: customercare@mlbcapital.com
Call us : (011)-45060600
* Available from 08:00 a.m. to 07:00 p.m. from Monday to Saturday.
Mail us: customercare@mlbcapital.com
Call us : (011)-45060600
* Available from 08:00 a.m. to 07:00 p.m. from Monday to Saturday.
It is very simple! Just choose from below mentioned options to contact us
- Visit our website www.mlbcapital.com and register yourself
- Email us at customercare@mlbcapital.com
- Call us at 45060600
Yes, it is compulsory to have demat account with us for Internet Trading.
To open an account, following documents are required to be submitted along with filled up client registration form: For Individuals
- Two passport size photographs (signed across by the client)
- Photocopy of PAN card (photocopy should be clearly visible)
- Proof of Identity a) Passport; b) PAN; c) Voter ID; d) Driving License; e) MAPIN card
Proof of Address
- Voter ID
- Driving License
- Passport
- Ration Card
- Photocopy of Bank Passbook/Bank Statement (attested by Bank)
- Latest Telephone (landline)/Electricity/Water Bill (Not older than two months)
- Notarized copy of Lease-License agreement / Sale Deed
- Identity Card, with address, issued by Central/State Govt. & its departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Professional Bodies such as ICAI, ICWAI, Bar Council etc. to their members & Colleges affiliated to Universities.
- Photocopy of Cheque / Cancelled Cheque (compulsory in case of MICR)
- Copy of latest Bank Statement / Passbook, clearly mentioning Bank Account Number, Branch Name & Client Name (not older than six months)
- Letter from banker certifying account number & the period from which the account is operational For HUF
- All documents & annexures as per "Individual"
- Photograph of Karta signed across the photograph
- Proof of Identity & Address of Karta
- Photocopy of PAN card of Karta & HUF
- HUF stamp should be affixed wherever the client’s signatures are on the agreement
- HUF declaration duly stamped & signed by Karta & two concerns clearly mentioning the name, relation & date of birth of the family members For Proprietorship Firm
- All documents & annexures as per "Individual"
- Latest photograph signed by proprietor
- Proof of Identity & address of proprietor
- Photocopy of latest Income Tax return filed
- Proprietorship firm’s stamp should be affixed wherever the proprietor signs on the agreement.
- Declaration of the firm as per "annexure" mentioned in the form.
- Certification from the bank stating that the account is in the name of the proprietorship firm and the name of the proprietor on the bank letter head
Bank Account Proof
Delivery Trading is basically delivery based trading wherein 100 percent Funds / Shares are blocked at the time of placement of the order. i.e. if you want to buy shares you should have the entire amount of funds in your cash limit and if you want to sell shares the same should be available in your demat account. For sell positions, your trading limits will be increased immediately with the sell trade value. This will enable you to take further positions in the market
In Margin trading / Intra day trading, if you place a buy order then you will have to place a sell order or vice versa same day i.e. in same settlement cycle. You are required to close all your intraday positions prior to 15 minutes of market closure. MLB may square off, whenever it is applicable, 20 minutes prior to normal market closing. You can also convert margin orders to delivery if you have sufficient buying power available in your trading account.
Login related problem can arise due to following reasons
- Check your internet connection.
- Ensure that you are putting right password. If you have forgotten your password then put a request mail for new password to customercare@mlbcapital.com from your mail id (registered with us).
- Check your system configuration
If you have checked above points then call online customer care for help.
When the margin position is closed out (either by squaring off or converting to delivery), the proportionate margin blocked on the position so squared off is released back and added to the limits.
Any individual, HUF (Hindu Undivided Family), proprietary firm, partnership firm or a corporate can open online trading account with MLB
Commodity
A commodity is a product having commercial value that can be produced, bought, sold, and consumed.
A derivative contract is an enforceable agreement whose value is derived from the value of an underlying asset; the underlying asset can be a commodity, precious metal, currency, bond, stock, or, indices of commodities, stocks etc. Four most common examples of derivative instruments are forwards, futures, options and swaps/spreads. Commodity future is a contract to buy or sell specific commodity, of a specific quality, at a specific price, for a specific future date on the exchange.
A forward contract is a legally enforceable agreement for delivery of goods or the underlying asset on a specific date in future at a price agreed on the date of contract. Under Forward Contracts (Regulation) Act, 1952, all the contracts for delivery of goods, which are settled by payment of money difference or where delivery and payment is made after a period of 11 days, are forward contracts.
Futures Contract is a type of forward contract. Futures are exchange traded contracts to sell or buy standardized financial instruments or physical commodities for delivery on a specified future date at an agreed price. Futures contracts are used generally for protecting against rich of adverse price fluctuation i.e. hedging.
Futures prices evolve from the interaction of bids and offers emanating from all over the country which converge in the trading floor or the trading engine. The bid and offer prices are based on the expectations of prices on the maturity date.
In simple terms, long position is a net bought position.
In a spot market, commodities are physically bought or sold usually on a negotiable basis resulting in delivery. While in the futures markets, commodities can be bought or sold irrespective of the physical possession of the underlying commodity. The futures market trades in standardized contractual agreements of the underlying asset with specific quality, quantity, and mode of delivery whose settlement is guaranteed by regulated commodity exchanges.
As in capital markets, a commodity exchange is an association or a company or any other body corporate that is organizing futures trading in commodities and is registered with FMC (Forward Market Commission). Two major national level commodities exchanges are Multi Commodities Exchange of India (MCX), National Commodities and Derivatives Exchange of India (NCDEX).
Commodity Market in India is regulated by Forward Market Commission (FMC) under the guidance of the Ministry of Consumer Affairs, Food, & Public Distribution.
The biggest advantage of trading in commodity futures is price risk management and price discovery. Farmers can protect themselves against undesirable price movements and decide upon cropping pattern. The merchandisers avoid price risk. Processors keep control on raw material cost and decreasing inventory values. International traders also can lock in their prices
Hedging means taking a position in the futures or options market that is opposite to a position in the physical market. It reduces or limits risks associated with unpredictable changes in price. The objective behind this mechanism is to offset a loss in one market with a gain in another.
Arbitrage is making purchases and sales simultaneously in two different markets to profit from the price differences prevailing in those markets. The factors driving arbitrage are the real or perceived differences in the equilibrium price as determined by supply and demand at various locations
It is a document issued by a warehouse indicating ownership of a stored commodity and specifying details in respect of some particulars, like, quality, quantity and, some times, indicating the crop season. The original depositor or the holder in due course can claim the commodities from the warehouse by producing the warehouse receipt
Yes, the identifier is called as ICIN. Depending on the type of commodity, grade, validity, expiry date, name & location of warehouse, the exchanges allot ICIN to each commodity. ICIN differs from exchange to exchange.
Commodities have predefined lot sizes (set by the respective exchanges as per existing regulation) where current price of a particular commodity, for selected expiry, is shown in contract information available & rate units differ for different commodities. The standard unit based on which the price of the contract is quoted for trading is called quotation or base value. E.g. for gold contract, the quotation or base value is 10 grams while it is 1 kg in case of silver on MCX.
It is the quantity of a commodity specified in the contract as tradable units. The lot size is different for each commodity. The details about lot sizes / delivery lot can be obtained from the respective exchanges’ website. Each contract has a lot size and a delivery size, which are not the same; in the case of gold, the lot size on the NCDEX is 100 gm while the delivery size is 1000 gm. If a person wants to enter into a delivery settlement for gold, he will have to enter into a minimum of 10 contracts or multiples thereof. Market participants are required to negotiate only the quantity and price of the contract, as all other parameters are predetermined by the exchange. Please note the trading/delivery lot varies from exchange to exchange.
The cost-of-carry of a commodity is the sum of all the costs including interest, insurance, storage costs, and other miscellaneous costs. Usually, the commodity futures price in the exchange is the spot price plus cost-of-carry.
Basis is the difference between the spot price of an asset and the futures price of the same asset underlying. The spot price is the ready price prevailing in the physical commodity market while the futures price is the price of any specific contract that is prevailing in the exchanges where it is traded
It is the minimum percentage of the contract value required to be deposited by the members/clients to the exchange before initiating any new buy or sell position. This must be maintained throughout the time their position is open and is returnable at delivery, exercise, expiry or closing out.
It is the extra margin imposed by the exchange on the contracts when it enters the concluding phase i.e. it starts with tender period and goes up to delivery/settlement of trade. This amount is applicable on both the outstanding buy and sell positions
Mark-to-market margins (MTM or M2M) are payable based on closing prices at the end of each trading day. These margins will be paid by the buyer if the price declines and by the seller if the price rises. This margin is worked out on difference between the closing/clearing rate and the rate of the contract (if it is entered into on that day) or the previous day's clearing rate. The Exchange collects these margins from buyers if the prices decline and pays to the sellers and vice versa.
The contract enters into the tender period a few days before the expiry. This enables the members to express their intention whether to give or take delivery.
It is the rate at which the contract is settled on the expiry date. Usually it is the average of the spot prices of the last few trading days (as specified by the exchange) before the contract maturity.
Spread is the difference between prices of two futures contracts of the same underlying commodity. Futures market can be a normal market or an inverted market. If the price of the far month futures contract is higher than the near month one, then it is referred to as “normal market”. On the other hand, if the price of a far month futures contract is lower than the near month one, then the situation can be referred to as “inverted market”.
In most commodities and financial derivatives market, the term refers to buying contracts maturing in nearby month, and selling the deferred month contracts, to profit from the wide spread which is larger than the cost of carry.
In most of commodities and financial derivatives market, the term refers to selling the nearby contract month, and buying the distant contract, to profit from saving in the cost of carry.
Rolling over of hedge position means the closing out of existing position in the futures contract and simultaneously taking a new position in a futures contract with a later date of expiry.
It is a process of settling a futures contract by payment of money difference rather than by delivering the physical commodity or instrument representing such physical commodity (like, warehouse receipt). In India, most of the future trades are cash settled.
Yes, like equity markets, commodity market has circuit breakers. Exchanges have circuit filters in place. The filters vary from commodity to commodity but the maximum individual commodity circuit filter is 6 per cent. The price of any commodity that fluctuates either way beyond its set price limit will fall in circuit breaker category.
A. Credit risk: Credit risk on account of default by counter party: This is very low or almost zeros because the Exchange takes on the responsibility for the performance of contracts
B. Market risk: Market risk is the risk of loss on account of adverse movement of price.
C. Liquidity risk: Liquidity risks is the risk that unwinding of transactions may be difficult, if the market is illiquid
D. Legal risk: Legal risk is that legal objections might be raised; regulatory framework might disallow some activities.
E. Operational risk: Operational risk is the risk arising out of some operational difficulties, like, failure of electricity, due to which it becomes difficult to operate in the market.
A settlement takes place either through squaring off your position or by cash settlement or physical delivery. Squaring off is taking a opposite position to the initial stance, which means in the case of an original buy contract an investor would have to take a sell contract. An investor who intends to give or take delivery would have to inform his broker of the same prior to the start of delivery period. In case of delivery, a warehouse receipt is provided. Delivery is at the option of the seller; a buyer can take delivery only in case of a willing seller. All unmatched/rejected/excess positions are cash settled; all open positions for which no delivery information is submitted are also cash settled. Under cash settlement, the difference between the contract price and settlement price is to be paid or received. In online Mutual Fund, client can not go for delivery & all positions are cash settled.
While trading in commodities, with any registered broker, client has to pay certain charges (apart from margin requirements for trading) which are as follows:
- Brokerage
- Servicetax
- EducationCess
- Exchange Transaction Charges
- Stamp Duty
- Commodity Transaction Tax (CTT)