NEW DELHI: Commodity markets regulator FMC has decided to levy up to 5 per cent penalty - of the shortfall in the required margin money - on members of the national commodity bourses from April 1 for failing to collect the required amount from clients. www.mcxoperator.com Exchanges have also been asked to put in place a suitable mechanism to enable members report collection of all margins from their clients at the end of each trading day and to report short collection and non-collection on fifth day. www.niftyoperator.com Members, also called brokers, are required to collect the 'margin money' from clients, which is later deposited with the exchange. Margin money includes a percentage of the value of commodity that a client is keen to trade. www.commodityoperator.com FMC has issued fresh guidelines as the regulator has noticed several instances of non-collection and short collection of margins by members from their clients during inspection of their books of accounts.
As per new guidelines, a penalty of 5 per cent of the shortfall in margin money would be imposed on members who are repeated defaulters.
One per cent would be levied on each day if members fail to collect the margin money for more than three consecutive days after trading plus two working days (T+2). The same penalty would be imposed from the day one if initial margin is not collected.
The new guidelines will come into force from April 1. FMC said members will have to collect upfront initial margins from their clients. They are given time till 'T+2' working days to collect margins (except initial margins) from their clients.
Members are required to report to the exchange on T+5 day, the actual short collection/non collection of all margins from clients, it said.
The penalties collected should be credited to the Investor Protection Fund. The exchanges are directed to submit the report on the penalties to the FMC by the 10th day of the following month.
FMC said that incorrect reporting on collection of margin would attract members a penalty of 100 per cent of amount short collected.
A lot of commodity traders frequently enter into the trap of not being totally sure when to pick out gains on their commodity trades. Generally they take gains too speedily and other times they hold on for a big movement and their quick gain becomes into a loss. Knowing when to move out of a trade can often be quite difficult, but there are some simple steps to pick out that will help ease this trouble.
The 1st matter that all traders must see is that you will never get the top and bottom of every market on every trade. In point of fact, you wont still get close. There is no such matter as perfection in trading. The perfection that a trader requires to consider is applying the principles of a trading system to the letter and keeping discipline.
A trader must think of trading more as a game of figures and possibly not trying to enforce system of logic on the markets. The markets will do no matter what they are going to do and nonentity can nail 100 percent of the about time what they will do. Generally a technical or fundamental frame up in a market will suggest that the market will make a large movement. Generally it will and sometimes it wont. Basically because of this, a trader has to be uniform on when to pick out gains.
For instance, say that you most of the time buy a commodity at trendline financial support on the daily charts. You might risk $ 250 per contract on each trade and you strive for $ 500 gain. After that trading for a time period, you realise the markets will sometimes move far away from $ 500 gain objective and you leave lots of money negotiable. Other times, the market moves up $ 300 and reverses. You finally get stopped out at breakeven or you continue to hold and finally take a loss on the trade.
After that a while, it is simple for a trader to get mixed up and disappointed. After that a couple trades in a row where the market goes well past the $ 500 gain objective, the trader decides she will hold on for a $ 1000 gain on the next trade. The markets will frequently mess with your head during the time you decide to do this. Sure enough, the market makes a $ 500 move in your way and so reverses. You end up getting out at breakeven, as you didnt want to handle your stop up too tight.
This could happen over and over again. The more than times you change your gain objectives, the bad things will become. It is best to stick with the same gain scheme. If you have a high ease that you can be successful taking $ 500 gains and $ 250 losses, then stick to it. Dont worry about a market making a $ 2000 movement and missing out on gains. That will only drive you nuts. There will always be another trade coming in the future. If you have a profit and loss scheme that works, dont mess with it.
There is one pinch that I commend traders to do. You can assess the average daily reach over a period of time of 10 or 20 days and correct you profit end goal consequently. In time of high unpredictability, you might want to have an objective of $ 700. In periods of low volatility, you might want to lower the target to $ 350. I wouldnt make changes too frequently, but this gives you some ideas for tweaking your formula.
It is important for a trader to stay In the Zone so to speak. This means focus on taking your little slice of gains out of the market. Dont get greedy or egotistical and think you have to get every last penny of every movement. That type of thought is what gets traders to get mixed up and second-guess their trading. It clutters up their ideas and finally gets them to generate losses.
some of the biggest deviations between successful and unsuccessful people. understand five of them :.
1. Successful people adopt change. Unsuccessful people fear it. "Adopting change is one of the hardest things a individual can do," . With the planet acting quicker and technology speeding up at a speedy fastness, it's essential that we adopt these changes and accommodate, rather than fear them, deny then, or hide out from them, he says. Successful people are able to do just that. 2. Successful people speak about thoughts. Unsuccessful people speak about people. Alternatively of dishing the dirt specialized in people - which gets you nowhere - successful people talk about ideas. "Sharing ideas with other individuals will only make them better," 3. Successful people admit responsibility for their losers. Unsuccessful people fault other individuals. Truly successful leaders and business people experience both ups and downs in their lifetimes and careers. But they always admit duty for their losers. Kerpen says faulting other individuals solves not anything. "It just puts other individuals down and perfectly no good comes from it.". 4. Successful people give other individuals all the credit for their victories. Unsuccessful people take all the credit from other individuals. Letting people have their instants to shine needs them to work harder, and, accordingly, makes you look better as a leader or teammate. 5. Successful people want other individuals to have success. Unsuccessful people in secret hope other individuals fail. "When you 're in a company with a group of people, in order to be successful, you all have to be successful," . That's why the most successful people do n't wish for their loss of life ; they want to see their workfellows win and develop.
Other major deviations : successful people exude joy, share data and info, read every day, and continuously learn, while unsuccessful people exude anger, hoard data and info, see TV every day, and fly by the seat of their pants. FINAL WORDS, I KNOW THERE ARE LOTS OF OTHER MAJOR IMPORTANT THINGS IN BETWEEN SUCCESS AND UNSUCCESS BUT THESE WERE JUST VERY IMPORTANT I FELT. YOU CAN COMMENT ON OUR COMMENT BOX IF YOU HAVE ANY SUGGESTION.
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A set of small -, mid -, and large cap US indices broke to new statistical levels this calendar week after shaking off a set of market-rattling geopolitical events, including Russia's appropriation of Crimea and additional derogation in the Chinese renminbi. Friday was also a triple-witching options expiry day, implying monthly stock, index, and quarterly index future options all expired at the same time. Traders can await overhang from these expirations on Mon.
The release of the FOMC's economical projects and inputs from Janet Yellen at her first press conference as Fed head have stimulated substantial volatility in interest rates. On Friday, FOMC talkers played down Yellen's comment that the Fed would begin growing its standard interest rate six calendars month after it discontinued its asset purchase programme. Next calendar week, the markets will be giving keen attending to eight addresses from various FOMC members. If the addresses were to clear up any of Yellen's inputs, they would likely be a convinced accelerator for equities. Next calendar week has three important economical data accounts in the US : Feb durables, personal spending, and new-home sales. Studying the harsh weather during the calendar month, there's a risk of missing prospects to the downside with all three accounts. Manufacturer prices already reported for Feb pointed to a important retardation in trade services, which ever implies that long lasting and capital goods orders for the calendar month may prove similar helplessness. Improvement retail sales for Feb rose 0.3 % month-over-month. www.commodityoperator.com The third and final estimation of fourth-quarter domestic GDP will be published on Thursday. Economics expert are requiring a slight increase in the quarterly annualized growth rate due to a sizeable decrement in the current account shortfall for the quarter. Economics expert are now requiring growth will be 2.7 % in the quarter, up from the most recent government-reported estimation of 2.4 %. This coming Sunday, the advance estimation of China's Mar HSBC Market manufacturing PMI will be published. Basically because of the recent retardation in China's economical activity -- a dip attributed to the Lunar New Year holiday, which ever usually shuts factories for much of Feb -- it's very likely any convinced movement therein index ends up being a convinced accelerator for Chinese risk pluses on Mon. The written report will be published on Sunday at 9:45 p.m. EDT. Earnings season has not officially started for the first quarter, so the coming calendar week will only feature a few accounts. Companies of note include Walgreen (NYSE : WAG), Paychex (NASDAQ : PAYX), Gamestop (NYSE : GME), and PVH Corp (NYSE : PVH). Mon, Mar 24. US Economics (Time Zone : EST). 08:30 Chicago Fed - expected 0.10, prior -0.39. 09:45 Markit US Manufacture Preliminary PMI - exp 56.5, prior 57.1. 11:00 Fed to purchase $ 500m - $ 750m notes in 11 to 20-year range. 11:30 Treasury selling $ 25b 3-month, $ 23b 6-month bills.
Fedspeak. 09:00 am Stein addresses in Washington. Global Economics (Time Zone : GMT). 01:45 CNY HSBC Markit Flashing Manufacture PMI (Mar advance). 09:00 EUR Eurozone Manufacture & Services PMI (Mar advance).
Tuesday, March 25.
US Economics (Time Zone : EST). 09:00 FHFA Home Price Index (Jan) MoM - exp 0.5 %, prior 0.8 %. 09:00 S&P CS 20-City Complex MoM - exp 0.60 %, prior 0.76 %. 09:00 S&P CS YoY - exp 13.40 %, prior 13.42 %. 10:00 Consumer Trust - exp 78.5, prior 78.1. 10:00 Richmond Fed - exp 3, prior -6. 10:00 New Home Sales - exp 445K, prior 468K. 11:00 Fed to purchase $ 1b - $ 1.25 b notes in 22 to 30-year range. 11:30 Treasury selling 4-week bills. 1:00 Treasury selling $ 32b 3-year notes. Fedspeak. 4:00 pm Lockhart addresses in Atlanta. 7:00 pm Plosser addresses in New York.
Global Economics (Time Zone : GMT). 05:00 JPY Small Business Trust. xEOL .09:00 EUR German IFO Current Assessment, Expectations. 09:30 GBP CPI.
Wednesday, Mar 26.
US Economics (Time Zone : EST). 07:00 MBA Mortgage Applications. 08:30 Durable Goods Orders (Feb) - expected 0.7 %, prior -1.0 %. 08:30 Durable Goods ex Transports - exp 0.3 %, prior 1.1 %. 08:30 Cap Goods Orders Nondef Ex Air - exp 0.5 %, prior 1.7 %. 08:30 Cap Goods Shipments Nondef Ex Air - exp 1.0 %, prior -0.8 %. 09:45 Markit US Services PMI Preliminary - exp 5.40, prior 53.3. 11:00 Fed to purchase $ 2.25 b - $ 2.75 b notes in 7.5-10-year range. 11:30 Treasury selling $ 13b 2-year FRN. 1:00 Treasury selling $ 35b 5-year notes.
Fedspeak. 2:00 am Bullard addresses in Hong Kong on monetary policy. 8:20 pm Bullard addresses in Hong Kong on monetary policy.
Global Economics (Time Zone : GMT). 07:00 EUR German GfK Consumer Trust. 07:00 CHF UBS Consumption Indicator.
Thursday, Mar 27.
US Economics (Time Zone : EST). 08:30 Initial Jobless Claims - expected 322K, prior 320K. 08:30 Continuing Claims - exp 2882K, prior 2889K. 08:30 GDP Annualized QoQ (4Q final) - exp 2.7 %, prior 2.4 %. 08:30 Core PCE QoQ - exp 1.3 %, prior 1.3 %. 10:00 Pending Home Sales MoM - exp 0.1 %, prior 0.1 %. 11:00 Kansas City Fed - exp 5, prior 4. 11:00 Fed buying $1b-$1.25b bonds in 22 to 30-year range
12:45pm George speaks in Kansas City Global Economics (Time Zone: GMT) JPY Jobless Rate JPY CPI JPY Retail Sales CNY Leading Index 09:30 GBP GDP (4Q final) 10:00 EUR Eurozone Economic Confidence