online commodity trading


Online Commodity trading gains a good popularity and it’s easy to start the procedure knowing that you can now manage your finances in the right way. Once you decide to start online commodity trading you need to choose a broker who can help you to handle the features coming out with all positive aspects. Make sure the commodity market broker has ample knowledge of online commodity trading and thus you can get access to all real-time benefits. Also, it’s important to know the commission rates depending on which you can make a right choice. You can also opt for Interactive Brokers and Options Express ensuring that you can now get familiar with all optimistic facets as you need.

Doing the Documentation Work

First, you have to come out with the documentation work that helps you to open a Trading account successfully. You need to provide a disclosure of your detailed financial information analyzing the risks involved in the process. You must keep a constant update of the market trends that give you a clear idea of knowing how to handle the investment properly. In addition, you have to understand the risks involved according to which you can manage a successful online commodity trading followed by a suitable investment.

Getting Approval

Next, you need to get approval to start online commodity trading and now you have to fund your account in order to begin the operations. Now, you need to prepare a detailed trading plan featuring the smarter approaches that aid you to deal with the features in your way that gives you the ultimate confidence. Often you can find simulations that help you to practice the online commodity trading before you make an investment. It’s good to choose your commodity options trading after doing detailed research and you must avoid overtrading, which may lead to a certain loss. Make sure you gain good profits that inspire you to come out with next trades exploring all effective solutions.

In this way, you can now begin online commodity trading enhancing the business opportunities in real time. You must know the future contracts depending on which you can buy and sell the commodities same day by learning the benefits of trading.

Commodity Trading Online

Online Commodity trading is an elegant and encouraging form of investment. This business has many similarities with stock trading, but the biggest difference is the asset that is traded. Instead of buying shares of a company, online trading has focused on buying and trading commodities like gold, silver, etc. Commodities trading in India is traded like stocks where traders and investors trade and invest to earn good profits.

The goods are either cultivated or produced naturally in the environment. Some examples of trading commodities in India are gold, silver, zinc, copper, aluminium, lead, cotton, crude oil, natural gas, etc. In general, the most traded commodities are oil, gold, and silver, and these are covered in both international and national markets along with several other commodities. The prices of these goods are mainly based on their supply and demand. Traditionally, the most important players in the online commodity market in India were large companies. However, there are many individual investors who now have access to these markets via the internet. Large companies and corporations need consumer goods to operate – clothing manufacturers need cotton, supermarkets and restaurants need livestock, and construction companies need wood.

Strategy for Buying commodity 

To profit from the online commodity market, investors must buy or trade the commodity at the right time depending on the rise or fall of the price. Investors can use several methods to trade commodities. First, commodities can be traded with futures, which are contracts that dictate the purchase or sale of a commodity at a specific price. Commodities Trading online in India can also be traded using options – this means that the commodity is bought or traded on a specific date and price.


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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).

Names and contact details of all Key Managerial Personnel including Compliance Officer

Sr. No.Name of the IndividualDesignationContact NumbersEmail Id
1 Charanpreet GillCEO/
2 Charanpreet GillWhole Time
3 Charanpreet GillCompliance
4Manpriya GillDesignated
5Kewal GillDesignated

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