Page 42 - MEX-Yearbook-2017

MEX EDUCATIONAL RESOURCES-

YOUR GATEWAY TO THE WORLD OF COMMODITIES !

With its initiative to educate the masses, MEX Nepal brings a plethora of
educational resources so that a modern age trader is updated on the
recent developments from the world of commodities!

Mercantile Exchange Nepal Limited
Invest - Trade - Earn

An ISO 9001:2008 Certified Exchange

Exchange Solution:
A New Beginning!
(www.ax1systems.com)

► State-of-the-art, cutting edge trading console with customizable features and more professional software platform j:t' ljzi] f
for better trading experience in line with the proposed regulatory parameters.
ds{G6fOn{ PS;rG] h gk] fn lnld68]
► Complete Order Matching System with Price-Time Priority Execution.
► Inclusion of MARKET DEPTH. Availability of Competitive Spreads- Market based on best quotes! hxfF u5{ /fi6«n] sf/f]af/
► Clients order EXECUTION AT BEST BID AND ASK! cfO=P;=cf=] ())!M@))* af6 dfGotf kf| Kt PS;rG] h
► Flexibility of Contracts/Instruments in terms of contract sizes and types!
► Flexibility to Market Participants CM, CM/MM, I-MM, Brokers, Sub-Brokers, Clients! www.mexnepal.com

(Upcoming Phases: Warehouse Managers, Producers & Merchandisers)
► Global standards followed for MMs Quoting & Matching to allow a level and fair eld for all the

Market Participants, in its true sense!
► Fully Customizable & Equipped with Liquidity providers to permit domestic products price discovery with

deliverable options!
► Localized trading of globalized commodities-Simply GLOCALIZED!
► E cient order tracking system, along with Times and Sales Stamp, Advanced Charting Facility, Client Pro ling, Broker

Pro ling available leading to more transparency.
► Multiple access to traders account are possible.
► Back End Console for Broker & Clearing Member level.

Business Model at MEX facilitates
COMPLETE RISK MITIGATION AND MANAGEMENT SYSTEM: ARE YOU PART OF MEX YET?

www.mexnepal.com

WHY TO TRADE IN COMMODITIES
MARKET?

Online Trading System Trade Amount Without Margin Trading Margin Trading ds{G6fOn{ PS;rG] h gk] fn lnld6]8
Buying Price NPR 40,00,000 NPR 86,000
You can watch the prices of Selling Price NPR 40,000 /10 Grams NPR 40,000 /10 Grams hxfF u5{ /fi6«n] sf/f]af/
commodities online through various Profit NPR 40,500 /10 Grams NPR 40,500 /10 Grams cfO=P;=cf=] ())!M@)!% af6 dfGotf k|fKt PS;rG] h
devices (Desktop, Andoird, iPhone, =40,500-40,000 =40,500-40,000
iPad, Mac) and trade accordingly. Returns (%) =500/10 Grams =500/10 Grams d]S; g]kfn
=50,000/1 KG =50,000/1 KG
Liquidity =(50,000/40,00,000)*100 =(50,000/86,000)*100 !))) ± b}lgs cf;} t sf/fj] f/ !( ˆor" ;,{ !! :k6, !% cK;g / ^ efl} ts x :tfGt/0f x 'g] j:ts' f] sf/f]af/ &@ ± a|fs] / *))) ± u|fx s
=1.25% =58.31%
Trading in the commodity market dsG{ 6fO{n PS;rG] h g]kfn lnld6]8 -d]S; gk] fn_ gk] fnsf] Ps kd| 'v sdf]l86L PS;r]Gh xf] . o;sf] :yfkgf !$ cu:6, @))& df eO{ % hgjl/, @))( af6 sf/fa] f/
removes the hassles of finding a Two-Way Trading ;~rfngdf cfPsf] xf] . d]S;n] cfˆgf] :yfkgf sfnb]lv g} g]kfnL j:t'ahf/sf] ljsf;sf nflu lg/Gt/ k|of; ul//xs] f] 5 . PS;r]Ghsf] bl} gs sfd–sf/jflx cg'ejL
counter party as experienced in the / of]Uo ;dx" x?n] cfˆgf] ljif]z1tfsf] k|ofu] u/L q'l6lalxg tl/sfn] OdfGbfl/tfsf ;fy cfˆgf] lhDdj] f/L jxg ul//x]sf 5g\ . PS;rG] hn] lgDg ljifodf ljif]z Wofg
other financial markets. For a buyer, You can take advantage of price movement in the products either by lbPsf] 5 .
there will always be a seller and vice expecting the price to go up or go down. A simple briefing of 1 kg Gold,
versa. 8]l/el] 6e sf/f]af/sf nflu kl/If0f ul/Psf] cgnfOg{ sf/fa] f/:yn -:jrflnt sf/fa] f/ k0| ffnL_

Round the Clock Trading Facility lgikIf dN" o cfljisf/sf] ;+oGq

The market functions round the clock. dN" osf] kf/blzt{ f
MSeorcyaonuticleanExtrcahdaenagneytNimeepaalnyLwimhietered.
;Ifd /fkm;fkm k0| ffnL
Invest - Trade - Earn
An ISO 9001:2008 Certified Exchange Trading Bullish Market Trading Bearish Market dS] ; g} lsg <

Banking Transaction Only 36,060 36,020 d]S;n] ahf/sf] g]t[Tj ug{ ;kmn xg' 'sf k|dv' sf/0fx?M
36,050 36,000 j:t' tyf ;j] fdf gljgtf
The flow of funds in the commodity 36,040 35,980
markets are channelized only through 36,030 35,960 gk] fndf k0" f{ ?kdf :jrflnt sf/fa] f/ k|0ffnL / rf}la;} 306f sf/f]af/ u/fpg] klxnf] PS;rG] h .
the bank accounts. So, legitimate 36,020 35,940 kl/ist[ sf/f]af/ :ynsf] ljsf; ug{] . sf/fa] f/Ln] cfk"m cgs' 'n pknAw ;l' jwfsf] ko| fu] ug{ ;Sg] . ;fy} lgodg lgsfon] lgb]{lzt ug;{ Sg]
forms of banking transactions are 36,101 35,920 cfjZos dfkb08nfO{ dWogh/ ul/ ljsf; ul/Psf] :jrflnt sf/f]af/ k|0ffnL .
involved at all times. 36,000 35,900 ahf/df clwstd t/ntf k|jfx ug{ g]kfnd} klxnf] k6s ahf/ lgdft{ fnfO{ Ps leGg PsfO{sf] ?kdf kj| z] u/fpg] PS;rG] h .
35,990 35,880 cgnfOg{ dfkmt{ \ k;} f lemSg] ;l' jwf k|bfg ug]{ g]kfnsf] Ps dfq PS;r]Gh . o;n] u|fxsnfO{ s]lx ldg6] d} k;} f lemSg ;xofu] ub5{ .
Margin Trading [Leverage facility] 35,980 35,860 ;;+ f/sf] t];f| ] tyf Pl;ofsf] klxnf] PS;r]Gh h:fn] cfsl:ds cfjZostfsf] avt ckmnfOg{ ;xfotf pknAw u/fpFb5 .
35,970 35,840 :yfgLo :t/df pTkflbt j:t'x? h:t}M cnl} r, cfn', cb'jfsf] ef}lts x:tfGt/0fsf] nflu Jofks cg;' Gwfg ul//xs] f] PS;r]Gh .
Margin: The amount of equity
contributed by a customer as a Current Future Current Future pknAw ˆo"r;{ j:tx' ? pknAw :k6 j:tx' ? pknAw efl} ts x:tfGt/0f xg' ] j:tx' ? pknAw cK;g j:tx' ?
percentage of the current market Price Price Price Price
value of the contract held in a trading ax'd"No wftM' axd' "No wft'M rf“bLM @) s]=hL=-u|fgP' N;_ ;g'
account. Expecting the price to Increase Expecting the price to Decrease ;'gM ! s]=hL= -*@%) u|fd_ / !) uf| d ;g' M !)) uf| d / ! uf| d rf“bLM ! s]=hL=-af/_ rf“bL
Trader bought at 36,000 & sold at 36,050 Trader sold at 36,000 & bought back at rfb“ LM #) s]=hL= -*&=%) s]=hL=_ / @%) u|fd rfb“ LM %,))) uf| d / @% uf| d rfb“ LM !,))) uf| d -u|fgP' N;_ -*!)) u|fd_ sRrf tn]
The customer does not have to block 35,900 Kofnfl8odM ! s]=hL= -*)=%) s=] hL=_ ;'gM !) u|fd -l;Ssf_
the entire contract value for Trading. thereby making profit of 50X100=5000 thereby making profit of 100X100=10000 Knfl6gdM ! s=] hL= -*)=%) s=] hL=_ cfB} fl] us wftM' s'v'/fsf] c08fM & qm]6 -7n" f_] ;do cGt/fnM ! ldg]6, % ldg]6, !)
tfdfM !,))) s]=hL= / @%) s=] hL= s'v/' fsf] c08fM & qm]6 -dWod_ ldg]6, #) ldg]6, ! 306f
Example of Gold (1 KG) cf}Bfl] us wftM'
www.mexnepal.com tfdfM !,))) s=] hL= -*@%) s=] hL=_ phfM{ * Gog" td vl/b÷lalqm kl/df0f
sRrf t]nM @)) cd]l/sL Aof/n / %)
*Traders will have similar kind of loss if the market doesn’t move as per the expectation. phfM{ cdl] /sL Aof/n
sRrf tn] M @%) Aof/n -*^@=% Aof/n_ kf| sl[ ts Uof;M @,))) Pd=Pd=la=l6=o=' /
Hedging Facility kf| sl[ ts Uof;M @,%)) Pd=Pd=la=l6=o=' %)) Pd=Pd=la=l6=o'=
-*^@% Pd=Pd=la=l6=o=' _ aG|] 6 qm8' M @)) cd]l/sL Aof/n
You can minimize or eliminate a particular risk that you face from a a]G| 6 qm8' M @%) Aof/n -*^@=% Aof/n_
potential future price movement in the product. lxl6ª cfonM !),))) ln6/ -*@,%)) ln6/_

A simple example of a farmer, s[lifM
skf;M %,))) s=] hL= -*!,@%) s]=hL=_
dsM} !),))) s=] hL= -*@,%)) s=] hL=
ux“M' !),))) s]=hL= -*@,%)) s=] hL=_
sfs] fM @,%)) s=] hL= -*!,@%) s]=hL=_
skmLM @,%)) s]=hL= -*!,@%) s=] hL=_
e6df;M !),))) s=] hL= -*@,%)) s=] hL=_
e6df; t]nM !),))) s=] hL= -*@,%)) s]=hL=_
lrgLM !),))) s=] hL= -*@,%)) s=] hL=_

* Gog" td vl/b÷lalqm kl/df0f