I have started trading Crude oil mini lot in evening time using DP trading tactics. I thought about sharing some basic information on it, in case you are thinking about trading it. It will be very convenient to the aspiring traders to day trade who want to trade but cannot trade due to their current job or business or other commitment during day time. Here you can plan your day better, finish your work by 5 pm and get in front of the terminal by 5:30 pm and trade. You can trade up to 11:30 pm.
Price valuation and importance of Nymex crude and USD INR:
Our MCX market is totally dependent on International market. If in International market Nymex crude or USDINR goes up or down, here in MCX prices of crude oil will go up and down.
Now we will try to calculate the pricing for crude oil here. Because crude oil is traded as Future in MCX, there will always be a difference of 10 to 30 Rupees between the spot price and future price.
If USDINR price is Rs. 70 and Nymex crude rate is $40, MCX crude rate will be 70*40=Rs. 2800.
So even if USDINR goes up by 1 Rupees, MCX crude price will be like 71*40=2840. So even a small fluctuation of price in USDINR will have an impact on pricing of MCX crude.
Like this gold, copper, silver, natural gas and other commodities are valued.
Important Data Release affecting prices of MCX Crude oil:
Around 7.15 p.m. Chicago PMI
2 p.m- Manufacturing PMI
7.30 p.m.- ISM Manufacturing PMI
Around 8 p.m.- Crude oil Inventory Release
7.30 p.m.- Canada PMI
PMI data is related to manufacturing products so this will have some impact on Crude oil. Most important data release here is Crude oil inventory release on Wednesday. Prices will be very volatile upon data release. You may opt to wait for the important data release, let the prices get settled and then trade.
Also Europe market open and US market open will have some impact on prices and volatility and ongoing trading there.
For Nymex WTI Crude oil chart for 3-minute time frame and EOD chart, click here.
To fetch real-time MCX data and plot a chart on Amibroker for free, click here.
There is a Crude oil mini contract on MCX for the benefit of small traders. The contract specification of Crude oil mini is similar to the existing crude oil contract on MCX. The lot size of a crude oil mini contract is 10 barrels as against 100 barrels for regular future contract.
Current carry forward margin to trade one lot of mini is around Rs. 2800 and MIS is Rs. 1400 to trade intraday. For regular contract, multiple the same to 10 for current margin requirement.
Use this information as a base and explore it further to get more knowledge about it.
A well-made Video Tutorial will help you a lot to learn price action and day trading on MCX efficiently.
Explore more on, Trading on MCX with mini lots
Links for the charts,
Chart 1, Chart 2, Chart 3, Chart 4, Chart 5, Chart 6, Chart 7, Chart 8, Chart 9, Chart 10, Chart 11, Chart 12, Chart 13