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Old 05-01-2016, 03:26 PM
mb3trades mb3trades is offline
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Default Opening Tick or MKT opening price

Hi,

Iam confused about the opening ticks in MCX which we see in market watch of trading platform and charts how and where we get reliable opening tick.

for example : yesterdays MCX-CRUDEOIL16JANFUT the open as per mkt watch is 2494 which is not seen and open tick in chart is 2519.

same as todays open in mktwatch is 2467 and opening tick in chart is 2472

please explain me why it happens and help if somebody has solution to find out original opening tick.



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Old 11-03-2016, 09:41 AM
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I know why this happens for NCDEX, maybe its the same for MCX.

Many commodities in India (and globally) dont have a spot price, like oil seeds, dairy products etc. For these commodities, only futures is traded. So the exchange uses the theoretical futures price which is calculated as:

Theoretical Future price = Cash price + Financing cost – Income on cash position

where
Cash price = Clean Price + Accrued Interest

This is also the daily settlement price for that commodity (DSP) where the mark to market settlement will take place. So the next day market opens at yesterdays DSP and then the price moves as per the orders flowing in. This is a makeshift mechanism to keep the trading fair for all the players, including commercials and speculators. Although DSP for equities is VWAP in most cases.

Crude has spot, still the exchange uses the calculated DSP for settlement, which is why you see 2 prices. The one on market watch is the yesterdays DSP which is the opening tick for the omnesys adapter server. The one you see on chart is first traded price.
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Last edited by Trademaniac; 11-03-2016 at 11:53 AM.
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