Commodity Trading

This is perhaps the oldest trading in the world of financial markets which dates back to as old as the 16th century. This is the simple process of buying and selling a large range of instruments which include metal, oil, gas, and even farm products. Such trades can take place in the spot or derivatives market. There are two main segments in which commodities are segmented. One is hard commodities which include metals, crude oil, etc. and second is soft commodities that have limited shelf life like wheat, soybean, coffee, etc.

Commodity Trading in India

This type of trading is evolving at a rising state in India retail investors are contemplating the various risks and rewards associated. There are three major commodity trading exchanges in India on which a variety of products are bought and sold:

There are 2 other exchanges available as well for other commodities:

The trade timings are flexible in comparison to the stock market and exchanges are open from 9 AM to 11.30 PM IST from Monday to Friday.

Why should you invest in Commodities?

There is no manipulation in discovering the prices due to the present advancements of online trading.

There are low margin requirements that attract retail customers to enter this market.

There is a good scope of hedging the portfolio with the commodities due to a negative correlation.

No counterparty risks are involved as the trading takes place on exchanges.

Why should you invest with FINDOC?

Diversify your portfolio with an ample of products provided by our platform in the commodity trading.

Make the best use of high leverage provided to our valued customers.

Access to our advanced Technical as well as Fundamental research that aids you to take the correct decision in the wide world of the commodities.

Endure myfindoc on any of the devices including mobile phones, tablets, computers, etc.

The platform is highly equipped with state-of-the-art technology which ensures real-time actions.

Never get stuck with any trading issues with our dedicated customer service team.

Open your commodity trading with the user trading completely paperless platform with modern age technology.

Frequently Asked Questions

Which commodity is best for trading?

With over 10 products that are offered in the country, it can be difficult to choose the most appropriate commodities for trading. For this purpose, the parameters like liquidity and volatility are considered. Crude Oil is the best commodity for trading in India followed by Gold. Such products boast diversity and growth along with rising demand over the years. The trading can be facilitated by the futures as well as spot contracts.

What are the commodities traded in MCX?

The MCX or Multi Commodity Exchange provides the option to trade in the array of products namely: Metal - Aluminium, Copper, Lead, Nickel, Zinc, Brass Bullion - Gold, Gold Mini, Gold Guinea, Gold Petal, Gold Petal, Gold Global, Silver, Silver Mini, Silver Micro, Silver 1000. Agro Commodities - Cardamom, Cotton, Crude Palm Oil, Kapas, Mentha Oil, Castor seed, RBD Palmolien, Black Pepper. Energy - Crude Oil, Natural Gas.

How do I buy commodities?

Trading or investing in commodities can be challenging as compared to the stock of a company. This is because commodity trading involves products that are physical in nature. There are four major ways to include commodity in your portfolio. One is buying the commodity in the spot market with cash, two is trading via a commodity futures contract, three buying ETF units of the commodity funds, and fourth investing in the shares of those companies that produce the commodity.

What is the most profitable commodity?

For the past few years, crude oil has been the most profitable commodities. In the year 2019, crude oil was the topmost traded commodity in MCX which accounted for almost 32% of the MCX’s turnover which is equal to a large amount of Rs. 66 lakh crores. The prices of this product are affected by global factors along with political turmoil in the Middle East. As history speaks, there has never been an oversupply which negatively affects the cost of the product.

How are commodity prices calculated?

The commodities rely largely on their demand and supply mechanism due to its tangible nature. Similar to the valuation of any product the economy, the commodities are also priced similarly. The market price displayed in the news is usually the futures price which can be different from the actual spot price. The future price is calculated by adding the storage cost and deducting the benefits yield from that commodity.

What is the minimum amount required for commodity trading?

Stepping into the world of investing in commodity trading does not require a large capital. You can start with as low as Rs 5000 in which you are required to pay upfront margins to the brokers. Also, the amount depends upon the commodity segment you are interested to trade into. In comparison, the fund requirement for this asset class is lesser as compared to the others.

What are the top 5 commodities in the world?

Commodities markets are extremely famous with traders around the globe as enough opportunities are present because of the high volatility in prices. The trading in these products are much attainable and simple to understand/ The top 5 most traded and popular commodities in the world are the following: Crude Oil Coffee Natural Gas Gold Brent Oil

Commodity Trading Blogs

What are commodity futures?

A cotton farmer is expecting to produce a good quantity this season and is looking for the buyer. Company A is the leading textile industry and a potential customer for the cotton farmer. Here, Company A can use commodity futures to lock in a price for buying cotton at a date in the near future. Like other commoditie....

Read More

5 tips for commodity trading

Commodity trading India is like old wine in a new bottle. A variety of assets like gold commodity trading have existed much before the stock or bonds in our economy. One of the major difference both is that the stock market deals with the finished products while the commodity market has unfinished products like gold,....

Read More

The Basics of Commodity Trading in India

Commodities are goods used in everyday life which are movable and exchangeable. Commodity trading refers to the buying or selling of commodities or various financial instruments based on the commodities.In today’s scenario, amidst the dominance of the stock market, commodity trading in India has been escalating contin....

Read More

Disclaimer The information contained in this file is provided for informational purposes only, and should not be construed as legal advice on any matter. The content and interpretation of the law addressed herein is subject to revision. We disclaim all liability in respect to actions taken or not taken based on any or all the contents of this file to the fullest extent permitted by law. Every effort is made to avoid errors. In spite of that, errors and discrepancies may creep in. It is expressly stated that neither Findoc Investmart Private Limited nor any of the contributors of updates will be responsible for any damage to anybody on the basis of this document. Readers are, therefore, requested to cross check with the original sources e.g. Government publications, Orders, Judgments etc., before taking any action or making any decision. These services are being provided through our group companies Findoc Capital Mart Pvt Ltd and Findoc Finvest Private Limited

img
img
img
img
img
img

Important Message The information contained in this file is provided for informational purposes only, and should not be construed as legal advice on any matter. The content and interpretation of the law addressed herein is subject to revision. We disclaim all liability in respect to actions taken or not taken based on any or all the contents of this file to the fullest extent permitted by law. Every effort is made to avoid errors. In spite of that, errors and discrepancies may creep in. It is expressly stated that neither Findoc Investmart Private Limited nor any of the contributors of updates will be responsible for any damage to anybody on the basis of this document. Readers are, therefore, requested to cross check with the original sources e.g. Government publications, Orders, Judgments etc., before taking any action or making any decision. These services are being provided through our group companies Findoc Capital Mart Pvt Ltd and Findoc Finvest Private Limited

Attention Investors
  • 1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.
  • 2. Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.
  • 3. Pay 20% upfront margin of the transaction value to trade in cash market segment.
  • 4. Check your securities / MF / bonds in the consolidated account statement issued by NSDL/CDSL every month.
No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries forrefund as the money remains in investor's account."
Prevent Unauthorized Transactions in your demat account --> Update your Mobile Number with your Depository Participant. Receive alerts on your Registered Mobile for all debit and other important transactionsin your demat account directly from NSDLon thesame day.....issued in the interest of investors."
KYC is a one-time exercise while dealing in securities markets-once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary." | (As instructed by SEBI, We hereby declare that we do engage in proprietary trading in all segment across the exchange.)
Effective communication & Speedy redressal of the grievances a. Register on SCORES portal b. Mandatory details for filing complaints on SCORES: i. Name, PAN, Address, Mobile Number, Email ID c. Benefits: i. Effective communication ii. Speedy redressal of the grievances link: https://scores.gov.in/scores/Welcome.html

FINDOC INVESTMART PVT. LTD./FINDOC FINVEST PVT LTD.

Registered Office :

SCO 210-211, Sector 34-A Chandigarh-160022

Corporate Office :

4th Floor, Kartar Bhawan, Near PAU Gate No.1, Ferozepur Road Ludhiana -141001.