The trade has never seen such a worst phase. Consistent fall in the gold has dampened the sentiment. Though demand from Rajasthan also fell since last several months, rural demand which took a sharp downturn, is worrying traders. Rising default proved as a last straw on the camel's back. The wholesale trade has already halted since 1998 when three large traders became bankrupt. But lack of retail demand made traders a worried lot. Some traders have already diversified into other areas, while the rest are operating with very lowvolumes, said traders. While the volume in the cash market has dwindled, speculative trading in the global markets is increasing through point operators. Though small time traders lost heavily in COMEX, more and more such centres have come up. Trading can be done in almost all futures, from silver to sterling and coffee to cotton. "All what is needed is ample money and courage, in case there is a huge loss," said an analyst.When started, it was considered as a hedging facility against physical inventory, However, later on hedging took a backseat and the speculation became the chief activity for almost all importers. Small traders also followed the suit.

"Volatility in the global markets and absence of futures gave birth to COMEX. At present, there is hardly any importer who does not have a book with Dubai-based brokers,'' said a senior banker.

``Though importers preferred to be highly secretive about COMEX, it is no more a secret. More and more traders are opening such outlets. Small time traders wholacks knowledge of global derivatives are loosing money, but most of them still trade hoping against hope," quipped an insider.

COMEX: How it works

To take part in silver futures of New York Commodity Exchange (NYCE), orders has to be placed with a local broker. The broker is equipped with a Reuter screen, which gives realtime quotes of various commodities and currencies. He has contacts with Dubai-based broker and enroutes the deals to brokers in New York. The broker charges $20-30 from domestic traders.

The brokerage charge for gold and silver varies from $40 to $60 per contract. Tradeble lot for silver is 1,000 OZ, while for gold it is of 100 OZ. Deals are settled at the prevailing exchange rate, that is Rs 43.25 to Rs 43.30. For silver, gain or loss comes around Rs 2,250 a cent per one lot. All the positions are marked to the market at the end of the session.In the gold contract, traded lot is 100 OZ. Price quoted for gold is Rs 285.20 to Rs 285.70. Every move of a dollar translates in a gainor loss of Rs 4,250 per one lot, explained an operator.

As these trading points have become popular even small timers in remote pockets also trade in such exchanges. ``It's a very good system, you can use TEJI MANDI - Call and Put options,'' said a small operator. Most of them have obsession for trade, even when washout rate is as high as 90 per cent, reveals an analyst.