MCX Cotton and KAPAS: 3 Distinct strategies in KAPAS

MCX Cotton and KAPAS

 Three Distinct strategies in KAPAS 

The strategies capitalize a certain trend, that repeats itself every year, this time of the season. Each of the 3 strategies have a different payout-to-margin ratio, and so one can choose which one to use, depending on their individual risk-return profile.

The maximum payout being  40,000 on a margin of 10,000 per lot, over a period of 3 months.

Please note that, for the 3rd strategy, which is a Crack Spread between our Kapas and Cotton contracts, and also happens to be the most popular of the 3 strategies,

Ready-made calculations.

PRE-TRADE
	MCX Cotton Apr'14	MCX Kapas Apr'14	Difference (in Rs./ Bale)
Enter Screen Price	21100.00	1028.50	3664.38
Assumption of price levels by April end		820.00
Trade	BUY	SELL
Lots	2	5
Target			4780.00
Expected P/L (approx.)			42750.00
Margin Reqd.			114592.50
POST-TRADE
	MCX Cotton Apr'14	MCX Kapas Apr'14	Difference (in Rs./ Bale)
Exit available on Screen	17785.00	820.00	4780.00
Entered Price	21100.00	1028.50	3664.38
Actual P/L Status	-165750.00	208500.00	42750.00

For More Details

MCX

7th Floor, Shakthi Towers, Tower 1,766,

Anna Salai, Thousand Lights,Chennai - 600002, Tamil Nadu, India

Tel.+91 044 4395 0881,  Fax : +91 44 4395 0899 ,

 Email: tg.senthilvelan@mcxindia.com

 www.mcxindia.com 

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