General Rules for Trading
- Beginning account balances:
- Preliminary Round: NPR 300,000
- Final Round: NPR 300,000 (Preliminary round results do not impact the final round starting account balance. All team accounts are reset after the preliminary round.)
- All teams are required to execute at least 3 trades (three round turns as a minimum) per day in any listed commodities or a combination of these listed products. Daily required minimum is five trades, consisting of an entry (long or short) and an exit. The number of contracts traded is limited to the margin requirements posted in the rules.
- Teams are penalized NPR 1,000 per day for every day they make less than 3 trades.
- Teams are penalized NPR10,000 if they trade outside the specified contract months. Teams may only trade GOLD, SILVER CRUDE OIL AND COPPER ANY MONTHS
- A standard commission is charged for each trade as per traded contract (side).
- If a team loses 80% of it’s available account balance in one day, the account is locked for the remainder of the trading day.
- All accounts should maintain proper margin at all times, including the practice round. Margin rates fluctuate daily.
- If a team’s available balance drops below the required margin level, only orders that reduce or exit a position will be accepted.
Challenge Specific Definitions
- Trade – one trade is defined as a leg in, leg out round-trip. You are required to make 5 trades per day which equals 5 round-trips.
- Open equity – the unrealized gain or loss of an open position.
- Marked to market – the most recent day’s settlement price.
- Daily account value – based on the closed trades at the end of the day and does not reflect open trade equity of positions.
Commission – The standard commission charge shall be imposed to every trades execute by each team.
- Not completing 3 required trades per day – NPR 1,000 per day
- Open contracts at the conclusion of a round – NPR 1,000 per contract plus commission expenses on the open contracts. Open trade equity profit and loss will also be calculated to determine the final account balance. TDs settlement shall be made on Mark to Market basis.
- Trading outside the specified contract months – NPR 10,000 per contract. Teams may only trade GOLD, SILVER, CRUDE OIL AND COPPER
Profit and Loss
Profit / Loss Calculation Example:
If you buy 10 lots of NYMEX Crude Oil at $71.43 and liquidate the position by selling 10 at $72.27, you have made $0.84 (points) on 10 lots. The price per tick for NYMEX Crude Oil is $10.00. The following procedure provides an elementary example of calculating profit or loss.
* Refer to the Contract Specifications page for calculation details.
** Always use the decimal point in the calculation.
Step 1: Calculate Point Difference
Sell Price (72.27) – Buy Price (71.43) = Point Difference (.84).
Step 2: Calculate Profit/Loss
Point Difference (.84) * Contract Size (1,000 ) * # of Contracts
(10)= Profit/Loss (8,400)
Buying and Selling
- · If you buy to initiate a position, your account is “long.”
- · If you sell to initiate a position, your account is “short.”
- · If you are long 10 lots of April Crude Oil, you can sell 10 lots of April
- · Crude Oil to liquidate the position and become “flat”.
- · You can also increase your position or reverse and go short 10 contracts by selling 20.
- · Open positions are marked to market (the most recent day’s settlement price). You do not realize a profit or loss until you liquidate your position.
- · To calculate your profit or loss, you should use the criteria specific for each commodity.
- · All executions should be manually recorded and checked daily against the DCX trade log.