Motilal Oswal Securities Ltd. (MOSL) Member of NSE, BSE, MCX, NCDEX, CIN no.: U65990MH1994PLC079418.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt. Which is a group company of MOFSL.Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt.
NEW DELHI: on Monday kicked off its segment, with 142 members on board. This is the first time a stock exchange is offering contracts in commodity derivatives in the country.The move is expected to help establish better linkages between the commodity derivatives market and underlying spot markets.
NSE will kick off commodity contracts from October 12, 2018.BSE, which will not charge for first 12 months, said it aims to be price setter for 10 commodity products in India.According to the exchange, its commodity derivatives platform will help efficient price discovery, reduce timelines and make it cost effective. The bourse also promised a user-friendly platform with robust risk management system and wider market penetration.In an interview with ETNow, a BSE spokesperson said pan-India physical delivery of commodities is the need of the hour. He said physical delivery of equity derivatives, too, should be encouraged.BSE is focused on creating an orderly commodities market, he said. BSE will conduct commodity trading from 10 am to 11.30 pm from Monday to Friday.On Monday, the exchange launched delivery-based futures contract in gold (1 kg) and silver (30 kg).
Initially, it will offer derivative contracts only in non-agriculture commodities.NSE has also received Sebi approval for introducing derivative contracts on Gold 1 Kg, Gold Mini 100 gm and Silver 30 kg on its commodity derivatives platform.“On the face of it, commodity trading on equity exchanges is a welcome step, as all assets can be offered to clients under one roof. However, replicating or trying to create liquidity for the same contracts which has huge liquidity elsewhere can be a huge challenge. Unless there is a clear benefit or advantage to clients to shift to these exchanges, it looks unlikely that there might be migration or new liquidity,” Gnanasekar Thiagarajan of Commtrendz Research told ETMarkets.com.BSE also said talks were on with brokers for extending trading hours in equities.
Failing to extend equity trading hours will be unjust to investors, the BSE spokesperson said.
After-hours trading is the period of time after the when an investor can buy and sell securities outside regular trading hours. Both the New York Stock Exchange (NYSE) and the normally operate between 9:30 a.m.
Eastern Time. Trades during the after-hours session can be completed through electronic exchanges anytime between 4:00 p.m. And 8:00 p.m. Eastern Time. These electronic communication networks (ECNs) match potential buyers and sellers without using a traditional stock exchange. After-hours trading takes place after the markets have closed. Post-market trading usually takes place between 4:00 p.m.
And 8.00 p.m., while the pre-market trading session ends at 9:30 a.m. Electronic communication networks make after-hours trading possible.
Risks associated with after-hours trading include less liquidity, wide spreads, more competition from institutional investors, and more volatility. After-hours trading allows investors to react immediately to breaking news and is much more convenient.Who Can Trade During the After-Hours Session?.
Less Liquidity: There are far more buyers and sellers during regular hours. During after-hours trading, there may be less trading volume for your stock, and it may be harder to convert shares to cash. Wide Spreads: A lower volume in trading may result in a wide spread between bid and ask prices. Therefore, it may be hard for an individual to have his or her order executed at a favorable price. Tough Competition for Individual Investors: While individual investors now have the opportunity to trade in the after-hours market, the reality is that they must compete against large institutional investors who have access to more resources than the average individual investor. Volatility: The after-hours market is thinly traded in comparison to regular-hours trading. Therefore, you are more likely to experience severe price fluctuations in after-hours trading than trading during regular hours.