Commodity market is almost similar to the stock market trading. Like in stock market we can trade in companies stock / future and options. In the other hand in commodity we can trade in commodities like Bullion, Metals, Energy and Agri Products.
Commodities market is also regulatory by SEBI now, earlier it was regulator by FMC. The major exchanges in India are:
1. MCX- Multi Commodity Exchange of India Ltd. was established in 2003.
2. NCDEX- National Commodity and Derivatives Exchange Ltd. was also established in 2003.
Commodity market is also like Future market, where the entire contracts have expiry date.
Who can trade in commodity market?
Anybody can trade in commodity market like stock market. But it is best who want to hedge their commodity between Spot and future markets like jewelers, Exporter-importer of any commodities which is available in Exchanges.
How to trade in commodity market?
Simply, you have to visit any broker firm, who is having commodity tickets like Sharekhan, Religare, Elite Wealth etc. To open and trading account you need some document like PAN Card, Bank Accounts etc.
How much investment need in commodity trading?
You can have an amount of low as 5000. It is depend on you, in which script you want to trade. There are Mega and Mini lots both are available. To trade in commodities need around 5% initial margin required on your exposure.
How to select which commodity is best for Buy or Sell?
To select commodity for trading you must know Technical Analysis or Fundamental Analysis Course. If you know that then it will be easy for you to trade in commodity market.
Join NIFM-which will give you complete solutions for share market. NIFM provides you so many courses. Those courses will help you to improve your trading skill. There are so many courses in NIFM which help you to create career in financial markets.
Call NIFM- 99103 00590, www.nifm.in
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