Comment on MCX - Profit/Loss for every 1 Rs change

botany02 commented on 07 Apr 2014, 04:59 PM

Hi Zerodha,

I have one Big Query?!.I Know that Mcx contracts of silver, Gold, Copper, Natural Gas and Crude whose price simply follow the price of equivalent contracts trading in Nymex and Comex.I also Know that Which month Contract of Nymex and comex is related to Mcx Contract.My Question is, there is always price difference between MCX price and the calulated price using Live Nymex/Comex price and USDINR.Say for example at 1000Am, May 14 Comex silver at 20 $/Oz & UsdINR is 60.00 after converting the silver price in Indian rupee will be 20x60x32.15=38580, at the same time Mcx Apr 14 silver price is 43080. A difference of Rs 4500 exist. How the difference is arrived.Don’t simply answer with, It is Cost of carry/Premium, tax, duty etc….Bcoz Every one tell the same answer.But what i want is how the price difference is arrived, is there any formula?… Bcoz, the price difference is approximately same throughout that particular day.The top Bid rate is always with same price difference.Same thing is happening on all other commodities mentioned above.I guess that the top bid rate is may be controlled by Exchange or some other big boss’s.Currently Im calculating that difference of price by multiplying, the Nymex/Comex future price at 0130Pm (Ny Time) & USDINR rate at 0130Pm (Ny Time) and minus MCX close Price of The Day.Please Reply.I hope that U can…..

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