INSUBCONTINENT EXCLUSIVE:
Kolkata: Indian Commodity Exchange (ICEX) has reduced the tick size of all three diamond future contracts on its platform as traders were
getting less opportunity to reverse their position or move out of their initial position
Tick size is the minimum price change between different bid and offer prices of an asset traded on an exchange platform
It is the minimum price difference that must exist at all times between consecutive bids and offer prices.
ICEX has revised the tick size to
tick size from October 8 to November 26 this year, we have seen more than 300 per cent increase in average daily turnover (ADT)
ADT in the period has increased by 313.38 per cent to Rs 64.28 crore in the period from October 8 to November 26 from Rs 15.55 crore in the
Ajoy Kedia, MD, Kedia Commodity, said that if the tick size is larger, traders and investors generally hesitate to enter
Liquidity on ICEX has increased due to the tick size and also because the market was pretty much eventful over the past few months
There has been positive data coming from big consumer markets such as the US, which is one of the biggest buyers of diamonds
So the data points from such markets impact our domestic diamond industry
Kedia said volatility in rupee has also affected diamond prices
Diamond prices are correlated to the rupee, hence volatility in diamond has also increased and there have been a good jump in diamond
