Commodities

Commodities

Pakistan Mercantile Exchange (PMEX) offer a wide variety of globally positioned and traded products. This exchange enables investors for long term and short term investments.

There are two kinds of contracts offered by PMEX.

Deliverable Futures

• A contract which is settled through giving the actual delivery of the underlying commodity.
• These contracts are either cash-settled or physically delivered on the expiry date of the contract.
• The investor has the right to square off their open positions at any time before the expiry.
• The investor can book their profit/losses in term of cash.

Cash Settled Futures

• There is no obligation of giving/deliveries of underlying commodities after the expiry of contracts.
• The profit/loss transfer into the respective traders’ accounts on the final settlement day.

US Stocks

NASDAQ- 100:

Nasdaq-100 includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization. It proffers liquid benchmark contracts to manage exposure to the 100 tech-leading companies that make up the Nasdaq-100. Additionally, the Nasdaq-100 futures contract is $20 x the Nasdaq-100 index (1 lot) and has a minimum tick of 0.25 index points.

Dow Jones 30:

It comprises U.S. 30 blue-chip companies represented in the stock index based on the longest history with conservative profits. Dow 30 futures contract is $10 x the Dow 30 index (1 lot) and has a minimum tick of 1.00 index points.

S&P 500:

S&P 500 incorporates 500 of the largest companies of the U.S. economy and is also considered one of the best representations of the U.S stock market. The S&P 500 futures contract is $50 x the S&P 500 index (1 lot) and has a minimum tick of 0.25 index points.

Currencies

Currencies pairs are available in lot one size. 1 Lot = 100,000 units. For example, if you want to trade in 1 lot of 100,000 units of any currency pair, you have to pay for minimum margin (investment) as defined by PMEX and EIG.

Hedging

A hedge is an investment to reduce the risk of adverse price movements in an asset. Usually, a hedge consists of taking a counteract position in a related security. Hedging’s use is to protect one’s capital against the effects of inflation by investing in high-yield financial instruments, real estate, or precious metals.