Tuesday, 9 February 2016

MCX Crude Oil

http://4.bp.blogspot.com/-zcvtkLJ-orQ/UAqGf6Gy3nI/AAAAAAAAAdY/1wYUQxXD4yY/s1600/CRUDE+OIL5.gif 



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.
Example:
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:


Monday
Around 7.15 p.m.  Chicago PMI

Tuesday
2 p.m- Manufacturing PMI
7.30 p.m.- ISM Manufacturing PMI

Wednesday
Around 8 p.m.- Crude oil Inventory Release

Friday
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.

Charting:

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.

Margin:

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 1Chart 2Chart 3Chart 4Chart 5Chart 6Chart 7Chart 8Chart 9Chart 10Chart 11Chart 12Chart 13



13 comments:

  1. Such a nice piece of information ! Would help aspiring traders to apply their learning and gain confidence since, profit and loss would be very limited.

    ReplyDelete
  2. Awesome URD, good luck with Crude trading!

    Have you tried checking charts directly on trading view? I believe this will be more helpful.
    https://www.tradingview.com

    ReplyDelete
  3. You may also want to check this blog. JC actively trades Oil
    http://discretionary-trading.blogspot.in/

    ReplyDelete
  4. URD,

    I just observed crude for 2 days.. but it seems it trade quite volatile at PDH/PDL DP's...
    Can you share your exp so far.. how your approach towards crude changes, compared to nifty trading?

    ReplyDelete
    Replies
    1. It is not like that. It is only because of the fact that there is lot of volatility and because of it, prices are behaving like that. I am comfortable with it. Nothing to change. I trade it as I trade Nifty.

      URD

      Delete
  5. That was a good piece of information. I was kind of wanting to do it, due to my day job... your post really helped to get the basic information.
    ~zen

    ReplyDelete
  6. Booked my first decent profit in Crude today :)
    Thank you very much to you, Until this post came from you..I never thought that crude can be traded just like we trade nifty.

    ReplyDelete
  7. Really nice post. very helpful. I will look into crude also soon.
    thanks for all the information.

    ReplyDelete
  8. Good information. Very helpful to traders (Crude Oil) and control their risk % during news / PMI data release times.

    ReplyDelete
  9. Hi..

    Can you share some chart which shows how did you trade crude.

    ReplyDelete
    Replies
    1. Varun

      Here are the links,

      http://charttechnicals.blogspot.in/2016/02/mcx-crude-oilm-12022016.html

      http://charttechnicals.blogspot.in/2016/02/mcx-crude-oilm-16022016.html

      http://charttechnicals.blogspot.in/2016/02/mcx-crude-oilm2-16022016.html

      URD

      Delete