CAN WE MAKE MONEY BY DOING TRADING IN FUTURES & OPTIONS?

Online Commodity trading is the good way to earn profit but still considered a risky option by some retail investors. But if you can handle the trades in a proper way avoiding any overtrading you can make easy money that gives you the inspiration to go ahead exploring better solutions.

Doing Gold Trade

Gold is being traded all across the World using spot prices and derivatives, which include forwards, futures and options. You can thus earn a good amount doing the online gold trade that reveals the true benefits of doing commodity trade. In India, online commodity trading of gold is based on MCX and NCDEX division and these agencies come out with a national recognition that gives you the confidence knowing that you are completely safe.

On the other hand, you can also use gold ETF, which features gold in a paper or in a dematerialized form, where the value equals to one gram of gold. Coming to MCX gold is traded in a variety of contract sizes and thus you can choose the feasible one according to your needs. You can now trade as you want to analyze the risk conditions that make it easier to manage the aspects in your way. The contracts, which you can avail are like:

  • Gold mini contracts
  • Gold petals
  • Gold Guinea

You can thus get a clear view of gold trading options knowing which you can handle online commodity trading confidently learning the ways to make good money by eliminating the risk factors.

Have Patience

Once you start online commodity trading it may take a little time to get the profits and thus you have to wait for some time. Make sure you are on the right track and you can also seek the help of an expert knowledge that you get suitable profits following the market trends. And you must get familiar with the basics of technical analysis of online commodity trading ensuring that you can handle the trading facets without any difficulties. Technical analysis involves the use of candlestick charts that help you to prepare a detailed graph of market sentiment. You can thus make a prediction of online commodity market direction according to which can make proper investments that give you the ideal results.

You May Also Read- How to Initiate Commodity Options Trading in Online Commodity Markets

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It is, therefore, important to learn both the pros and cons of intraday trading to get a better idea of how this market works and how exactly you can grow your money. In this post, we will walk you through a few advantages and disadvantages of intraday trading. So, keep reading to learn more.

• Beware of fixed/guaranteed/regular returns/ capital protection schemes. Brokers or their authorized persons or any of their associates are not authorized to offer fixed/guaranteed/regular returns/ capital protection on your investment or authorized to enter into any loan agreement with you to pay interest on the funds offered by you. Please note that in case of default of a member claim for funds or securities given to the broker under any arrangement/ agreement of indicative return will not be accepted by the relevant Committee of the Exchange as per the approved norms.
• Ensure that pay-out of funds/securities is received in your account within 1 working day from the date of pay-out.
• Be careful while executing the PoA (Power of Attorney) – specify all the rights that the stock broker can exercise and timeframe for which PoA is valid. It may be noted that PoA is not a mandatory requirement as per SEBI / Exchanges.
• Register for online applications viz Speed-e and Easiest provided by Depositories for online delivery of securities as an alternative to PoA.

• Do not keep funds idle with the Stock Broker. Please note that your stock broker has to return the credit balance lying with them, within three working days in case you have not done any transaction within last 30 calendar days. Please note that in case of default of a Member, claim for funds and securities, without any transaction on the exchange will not be accepted by the relevant Committee of the Exchange as per the approved norms.

• Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your broker settles your account and, in any case, not later than once in 90 days (or 30 days if you have opted for 30 days settlement). In case of declaration of trading member as defaulter, the claims of clients against such defaulter member would be subject to norms for eligibility of claims for compensation from IPF to the clients of the defaulter member. These norms are available on Exchange website at following link: NSE, MCX

• Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin/ collateral MUST remain in the account of the client and can be pledged to the broker only by way of ‘margin pledge’, created in the Depository system. Clients are not permitted to place any securities with the broker or associate of the broker or authorized person of the broker for any reason. Broker can take securities belonging to clients only for settlement of securities sold by the client.

• Always keep your contact details viz. Mobile number/Email ID updated with the stock broker. Email and mobile number is mandatory and you must provide the same to your broker for updation in Exchange records. You must immediately take up the matter with Stock Broker/Exchange if you are not receiving the messages from Exchange/Depositories regularly.

• Don’t ignore any emails/SMSs received from the Exchange for trades done by you. Verify the same with the Contract notes/Statement of accounts received from your broker and report discrepancy, if any, to your broker in writing immediately and if the Stock Broker does not respond, please take this up with the Exchange/Depositories forthwith.

• Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the trading member, compare it with the weekly statement of account sent by broker and immediately raise a concern to the exchange if you notice a discrepancy.

• Please do not transfer funds, for the purposes of trading to anyone, including an authorized person or an associate of the broker, other than a SEBI registered Stock broker.

• Do not deal with unregistered intermediaries (who are not registered with SEBI/Exchanges).

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