Option: Mercantile Exchange Nepal Limited: Online Commodities and Metal Trading in Nepal

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Option Trading: Introduction

Option trading allows trader to forecast the price direction of commodities within specified time frame with defined risk and return. The return is specified in option contracts where trader can trade with call or put. Whenever price is expected to move higher than current level within specified time frame trader can choose call contracts and if price is expected to go lower than current level within specified time frame than trader choose put contracts. Option Trading provides trader with an opportunity to make defined return with estimated risk.

Download MEXN Option Trader from Google Play

Download MEXN Option Trader from Google Play

Download MEXN Option Trader from App store

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	English	Nepali
Help Manual
Primary Guideline for Trading in Option
Overview of MEXN Option Trader

Option trading details:

Product	Contracts	Payout (in %)	Commission(per investment)	Minimum Investment (Rs.)	Maximum Investment (Rs.)	Market Time (NST) Monday- Friday	Order Lockout Period
CRUDEOIL	1 Minute	75	5 % + VAT	100	4000	10 AM – 11 PM	30 seconds
	5 Minute	75	5 % + VAT	100	4000	10 AM – 11 PM	1 minute
	10 Minute	80	5 % + VAT	100	4000	10 AM – 11 PM	2 minutes
	30 Minute	85	5 % + VAT	100	4000	10 AM – 11 PM	5 minutes
	60 minute	90	5 % + VAT	100	4000	10 AM – 11 PM	10 minutes
GOLD	1 Minute	75	5 % + VAT	100	4000	10 AM – 11 PM	30 seconds
	5 Minute	75	5 % + VAT	100	4000	10 AM – 11 PM	1 minute
	10 Minute	80	5 % + VAT	100	4000	10 AM – 11 PM	2 minutes
	30 Minute	85	5 % + VAT	100	4000	10 AM – 11 PM	5 minutes
	60 minute	90	5 % + VAT	100	4000	10 AM – 11 PM	10 minutes
SILVER	1 Minute	75	5 % + VAT	100	4000	10 AM – 11 PM	30 seconds
	5 Minute	75	5 % + VAT	100	4000	10 AM – 11 PM	1 minute
	10 Minute	80	5 % + VAT	100	4000	10 AM – 11 PM	2 minutes
	30 Minute	85	5 % + VAT	100	4000	10 AM – 11 PM	5 minutes
	60 minute	90	5 % + VAT	100	4000	10 AM – 11 PM	10 minutes

Last update: 11th July, 2017

Frequently Asked Questions

1. What is my minimum and maximum trading amount?

Trading amount ranges from a minimum of Rs. 100 and maximum of Rs. 4000 per contract.

2. What Instruments are tradable in Options?

Instruments tradable in options are CRUDEOIL, GOLD & SILVER in the list.

3. In which price are the options traded in?

The price of a particular contract is the bid price of spot contract.

4. What are the timings for options trading?

The timing for options trading is 10:00 AM to 11:00 PM (NST)

5. Can I close the position after my order is executed?

No, one cannot close the position once it is executed. After we place an order, the contract itself settles in the specified time.

6. What is Strike price?

The price at which the order is executed is called strike price.

7. What is payout?

It is the estimated return of a contract. For example, when the payout ratio is 60% and the trader has injected Rs. 100. In the case of profit, Rs. 60 will be realized and in the case of loss, Rs. 100 will be deducted.

8. What is the cost of trading?

5% +VAT of traded amount is charged as commission and if there is profit then TDS is charged on profit after deducting commission.

The calculation of TDS is as follows:
Traded amount = Rs 1000
Profit = Rs 600
Commission = Rs. 56.5
Profit after commission = Rs. 600- Rs 56.5 =Rs 543.5
TDS = 10% of Rs 543.5 = Rs. 54.35
Profit after TDS = Rs 543.5 – Rs. 54.35 = Rs 489.15

9. Is option trading available in desktop/other version?

Currently, the app is available only in Android platform.

10. What are the exciting features in the app?

You can view the accounting summary of your transactions. It is user friendly. Chat support is there in case of emergencies and there is a facility of online deposit and withdrawal as well.