Personal Finance Blog India –

Nickel Futures At MCX India:

Nickel is known for its in different or unique trends from other base metals and highest volatility.Its mostly used in steel industry so trend is always set by demand-supply scenarios across steel industry.It is also used as alloying material with other metals like zinc as well for electroplating.

Brief History of Nickel:

1.Nickel was discoved in 1751.

2.Have a little industrial value till Faraday discovered that alloying nicel strengthens iron in 1820.

3.Added industrial value when Nickel-steel was discovered in 1885.

4.In 1979,nickel was the seventh base metal to be traded at London Metal Exchange.

5.Prices become much more volatile during the abnormal conditions like mine strikes,lower supply and soared from $2 to $8  per pound in 1988.

6.Prices touched life time high of nearly $21 /pound in 2007

7.Now in 2011 prices are currently trading at $8.30 / pound.

Important Golbal Nickel Exchanges:

Exchange Product LotSize
LondonMetal Exchange Nickel 6 MT
MCXIndia Nickel 250 Kg.

Profit-Loss calculation:

Buy Price(Rs/Kg) Sell Price(Rs/Kg) LotSize Profit/Loss(Rs) Brokerage* Net P/L
900 920 250 Kg 5000 130 4870
900 880 250 -5000 130 -5130

*Assuming brokerage rate of 2 paisa per Rs100 transaction.

// Effeective from 25th Dec 2011,mcx have started trading in nickel mini contract with lot size of 100 kg.

As usual,nickel offers good trading opportunities for individuals and who uses physical nickel for industrial application purposes,but remember the risk associated with it.


Category: Commodities


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