Commodity Market in India:
Commodity trading in India has a long history. In fact, commodity trading in India started much before it started in many other countries. However, years of foreign rule, droughts and periods of scarcity and Government policies caused the commodity trading in India to diminish. Commodity trading was, however, restarted in India recently. Today, apart from numerous regional exchanges, India has four national commodity exchanges namely, Multi Commodity Exchange (MCX), National Commodity and Derivatives Exchange (NCDEX), National Multi-Commodity Exchange (NMCE) and Indian Commodity Exchange (ICEX). The regulatory body is Forward Markets Commission (FMC) which was set up in 1953.
The commodity market rally began in early 2002 and continued until mid-2008. Between 2005 and 2008, it saw accelerated growth due to rising demand from emerging economies, capital infusion from non-commercial players and financial investors, and phenomenal growth in trading on commodity exchanges, the report said.
How to invest in commodity market
More and more people are willing to enter and invest in commodity market to earn profit because it is beneficial and convenient. If a person who has no knowledge about commodity, how to invest in commodity then he/she can get online Tips on internet or can get Commodity Tips on mobile.
A commodity is any primary good that includes agricultural products, fuels, and metals, traded in plenty on an exchange. Commodities trading are a sophisticated form of investing. It is similar to stock trading but instead of buying and selling shares of companies, an investor buys and sells commodities. Like stocks, commodities are traded on exchanges where buyers and sellers can work together to either get the products they need or to make a profit from the fluctuating prices. Commodity trading is buying and selling of futures and the future options.
Commodity trading is not easy as you would think, but if you do it well, you will be doing good money with this kind of trades.
It's not a place where you can just throw in your money without guidance. There are many companies in the market providing Commodity Tips for market. They provide calls in all sectors of commodity market with high percent of accuracy. Tips are provided by experts team which is very helpful for subscribers. It works like a catalyst to increase you business.
Some Steps for Trade in Commodity Market in Indian
1. Locate a brokerage house with a reputation for service.
2. Fill a Demat account opening form with a registered brokerage house and a member with the national commodity exchanges. You could require PAN card, address proof and passport size photos.
3. Be clear of the rules and regulations especially transaction costs.
4. Choose the right brokerage plan that optimizes your costs, brokerage fees ranging from 0.03% to 0.08% on contract value.
5. Be clear of the service deliverables from your broker.
6. Insist on regular reports and special knowledge/training opportunities.
7. Set aside funds for commodity investing, but remember not at the cost of other traditional investing avenues.
8. Focus on a few commodities, gather requisite knowledge and pay up the initial amount for margin money, account opening charges and annual maintenance charges.
9. Clear any or all doubts now set stop loss and book profit levels.
10.Get ready for investing and track your success and losses all the time.
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