MCX/NCDEX - Profit and Loss Calculation:
We have created four sections/tables to understand the profit and loss when you trade in MCX or NCDEX. We have calculated the profit and loss for certain products for your understanding purpose only.
When you open an account with commodity broker, ask about Brokerage (Commission) and negotiate as much as possible. On a longer term, if you see your Brokerage (Commission), it will be in lakhs of rupees. Usually commodity brokers will try to charge higher Brokerage (Commission) based on their quality of service provided to you.
In tables, prices that we have mentioned are in INR (Rupees).
Section1: Profit Calculation for MCX Commodity
Section2: Loss Calculation for MCX Commodity
Section3: Profit Calculation for NCDEX Commodity
Section4:: Loss Calculation for NCDEX Commodity
Assumptions for calculation purpose:
- Commodity Name: The name of the commodity.
- Lot Size: Set by exchanges. The lot size may change also in near future.
- Transaction: All transaction are long calls (Buy and Sell) or Short Calls (Sell and Buy).
- Bought Price: The price at which commodity is bought.
- Sold Price: The price at which commodity is sold.
- Brokerage (Commission): Brokerage (Commission) charges by the brokers ranges between .03% and .05% or even lesser. For calculation purpose, we have taken .03% as the Brokerage (Commission).
Brokerage (Commission) = (Bought Price * Lot Size * .0003) + (Sold Price * Lot Size * .0003).
- Gross Profit/Loss:
(Sold Price - Bought Price) * Lot Size.
- Net Profit: Gross Profit - Brokerage (Commission).
- Total Loss: Loss + Brokerage (Commission).
Commodity Tips Syntax
Profit, Brokerage for MCX Traded Products