Do & Dont In Commodity Future Marketn
image
Ndex
An ISO 9001:2008 Certified Exchange


Nepal Derivative Exchange Ltd.
Call Us 5199421/5199422  
image HomeTerms & ConditionsFaqsSite Map
 
image
Do's & Dont's In Commodity Future Market
image   image
Media Center More »
image   image
image   image
What's New More »
About Trade Authorization - 2014-05-13
Read More

image   image
image   image
Download NDEX Terminal  
Download TWS Demo Download TWS LIVE
image   image
image   image
Professional Clearing Members  
NCCPI nefdm
image   image
image   image
Banking Partner  
Nepal Investment Bank Ltd.
Nepal Investment Bank Ltd.
Century Bank
image   image
image   image
Calendar  
Nepal Investment Bank Ltd.
image   image
image   image
Do's & Dont's In Commodity Future Market Home » Do's & Dont's In Commodity Future Market
Dealing with members
             
Do's  

  • Trade only through Registered Trading Members of the Exchange. Check from the Exchange website at http://www.ndex.com.np/member.php to see whether the Member is registered with the Exchange.
  • Insist on filling up a standard 'Know Your Client (KYC)' form before you commence trading
  • Insist on getting a Unique Client Code (UCC) and ensure all your trades are done under the said UCC.
  • Insist on filling up a standard ‘Member-Client Agreement’.
  • Insist on reading and signing a standard 'Risk Disclosure Agreement'.
  • Obtain a copy of your KYC, Member-Client Agreement and/ or other documents executed by you with the Trading Member, from the Member Client.
  • Cross check the genuineness of trades carried out through your account in case of someone (AE) who trade on behalf of you.
  • Ensure that the Contract Specification contains all the relevant information such as Contract Expiry Date, Contract Size, Product Code etc.
  • Obtain receipt for collaterals deposited with the Member towards margins.
  • Go through the Rules, Bye-laws, Regulations, Circulars, Directives, Notifications of the Exchange as well as of the Regulators, Government and other authorities and details of Client-Trading Member Agreement to know your rights and duties vis-à-vis those of the Member.
  • Ask all relevant questions and clear your doubts with your Member before transacting.
  • Insist on Monthly statements of your ledger account and report any discrepancies in the statement to your Trading Member within 7 working days. In case of unsatisfactory response report the discrepancy to the Exchange within 15 working days from the date of cause of action.
  • Pay required margins in time and incase by Cheque ask for receipt thereof from the Trading Member.
  • Understand and comply with accounting standards for derivatives.

Don'ts

  • Do not deal with any unregistered intermediaries.
  • Do not undertake off-market transactions as such transactions are illegal and fall outside the jurisdiction of the Exchange.
  • Do not enter into assured returns arrangement with any Trading Member.
  • Do not get carried away by luring advertisements, rumours, hot tips, explicit/ implicit promise of returns, etc.
  • Do not make payments in cash/ take any cash towards margins and settlement to/ from the Trading Member.
  • Do not start trading before reading and understanding the Risk Disclosure Agreement and entering into the prescribed agreement with the Trading Member.
  • Do not neglect to set out in writing, orders for higher value given over phone.
  • Do not accept unsigned/duplicate contract note/confirmation memo.
  • Do not accept contract note/confirmation memo signed by any unauthorized person.
  • Do not delay payment/deliveries of commodities to Trading Member.
  • Do not forget to take note of risks involved in the investments. 


Dealing in Commodity Futures

Do's

  • Familiarize yourself with all the provisions of Future Trading dealing with futures trading in commodities and amendments thereof from time to time.
  • Understand the provisions and rates relating to the sales tax, value added tax etc., as applicable on the underlying commodity of any contracts offered for trading by NDEX.
  • Read, understand and be updated about the guidelines and circulars of the Exchange issued from time to time and kept on the respective websites.
  • Read the commodity contracts circulars issued & kept on NDEX website and carefully note the contract specifications of the commodity in which you wish to trade. The contract specifications are subject to change from time to time.
  • Before entering into buy and sell transactions please be aware of all the factors that go into the mechanism of pricing, trading, clearing and settlement.
  • Read the product note of the commodity in which you wish to deal to understand the commodity and parameters that impact on the trading and settlement of the commodity.
  • Understand the Delivery & Settlement Procedures given in the Exchange Circular of the commodity kept on the Exchange website that you wish to deal in the futures market.
  • Study historical and seasonal price movements of the commodity that you wish to deal in the futures market.
  • Keep track of Governments' Policy announcements from time to time of the commodity that you wish to deal in the futures market.
  • Apply your own prudent judgment for investments in commodity futures and take informed decisions.
  • Comply with Taxation and other Government issues.
  • Go through all Rules, Bye Laws, Regulations, Circulars and directives issued by NDEX.
  • Since futures trading attract various types of margins, be aware of the risks associated with your positions in the market and margin calls made from time to time.
  • Collect/Pay Mark-to-Market margins Cheque on your futures positions on a daily basis from/to your Trading Member.
  • Be aware of your risk taking ability and fix stop-loss limits. Liquidate your positions at such levels to reduce further losses, if any.
  • In case of any doubt/problems, contact Exchange's Help Desk or email at info@ndex.com.np , compliance@ndex.com.np

 Dont's

  • Do not fall prey to market rumours.
  • Do not go by any explicit/ implicit promise made by analysts/ advisors/ experts/ market intermediary until convinced.
  • Do not take trading decisions based on reports/ predictions made in various print and electronic mediums without proper evaluation.
  • Do not deal based on Bull/Bear run of commodity markets sentiments.
  • Do not trade on any product without knowing the risks associated with it.
image   image
image
image
       
Logo
Copyright © 2009 Nepal Derivative Exchange Ltd. All Rights Reserved.
Home || Career || Privacy Policy || Faqs || Site Map || Disclaimer || Email Disclaimer
Company
Vision & Mission
Benefits of Trading
Associations
Market Operations
Trading and surveillance
Trading Time
Delivery
Clearing and Settlement
Risk Management
Knowledge Center
Derivatives
Fundamental/Technical Analysis
What is Exchange?
What are commodities?
Related Websites