Speculative or non specualtive

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This discussion clarifies whether trading in MCX commodities, including futures and options, is considered speculative or non-speculative. The nature of the transaction, particularly intraday trading or settlement before the contract period ends, is crucial. Ultimately, the contract note dictates whether a transaction is classified as speculative, especially for spot trading settled within the same day.

Nagaraj

Nagaraj (Querist)

10 July 2023 Experts,

Need clarification on below points.

1. Trading in MCX commodity is speculative or non speculative? Trading in intraday or holing till the contract period does it change the nature of specualtive or non speculative?

2. In MCX commodity we select contract as either Future or options, can we say it is Futures and options?

3. Trading in NSE, futures is F & O?

4. In MCX commodity also Futures and in NSE also future does both transaction belongs to Future and options?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

10 July 2023 1. Non speculative.
Yes, if the contract note suggests so.
2. Yes.
3. Yes.
4. Correct.

Nagaraj

Nagaraj (Querist)

10 July 2023 Thanks for your reply
In MCX comodity market which transaction will be considered as specualtive transactions?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

10 July 2023 Any spot trading settled before close is speculative in nature.

Nagaraj

Nagaraj (Querist)

10 July 2023 Spot trading is intraday trading?
if yes intraday trade can be happen both in case of mcx commodity market (futures) and NSE (future), then is it specualtive or non speculative ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

10 July 2023 Totally depends upon the contract note, if similar to intraday i.e. settled at the end of day, it will be treated as speculative.

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