Commodity market


Commodity market works on the similar principle of the usual market where people can buy and sell commodities same day for gaining some good profits. It’s a virtual space where you can easily get familiar with the market trends according to which you make an investment earning the profits improving your business set up.

Strategies to Use

You can use a future contract trading where there would be an agreement between the buyer and seller where the buyer has to pay the amount as agreed at the time of the transaction. The amount is paid after the seller delivers the specific commodity on the decided date in future. Now, you have to choose the commodities that help you to manage higher finances making you feel confident.

Commodities used in future trade include:

  • Agricultural products like wheat, rice, corn etc.
  • Natural resources like crude, gas, oil etc.

So, you can opt for the right one knowing that you can keep a good pace with the market trends that aid you to manage the facets without any worries.

Commodity Exchanges

In India there are six commodity exchanges:

  • Multi Commodity Exchange (MCX)
  • National Commodities and Derivatives Exchange (NCDEX)
  • National Multi Commodity Exchange
  • ACE Derivatives Exchange
  • Indian Commodity Exchange
  • Universal Commodity Exchange

Since 2015 SEBI is the regulatory body of all these exchanges ensuring that all investors can do a safe business. An investor now can make a successful investment using bourses that help the person to comprehend the features in the right way. It’s always important to learn the diversities of the market helping you to get access to all real-time benefits. In addition, you can explore cross commodity options trading where you can maintain a balance with the trading features of other countries helping you to do a smarter trade.

If the price goes up by 2% your investment increases by 20% whereas if the price goes down by 2% your profit is affected by 20%. On the other hand, if you have sold a certain number of commodities, you would make a profit of 20% if the price lowers by 2% and your investment goes down by 20% if the price gets a hike of 2%.

In the online commodity market, the government regulates the commodity market with various laws, rules, and guidelines to deal with Indian businesses. Commodities are mostly traded on stock exchanges. This includes trading in commodities such as futures, options, forwards, swaps, and any other financial instrument or contract, or derivative linked to commodities or indices or based on the prices of any commodity.


How online Commodity Trading Works?

The Indian stock market offers several options for investing in stocks. If you are looking for a more stable investment option, the Indian commodity market is a great option for you.

Information has been received from the exchange about the current offers and offered prices of the goods in question. This information is obtained from the retailers who send these offers and promotions. The Indian commodity market has three main segments which include:

A) Stock exchanges render a platform for buyers and sellers of commodities online. These exchanges maintain a list of commodities that they add regularly based on supply and demand models. You can trade these commodities on an exchange either at a broker’s office or online from the comfort of your home.

B) Brokers are also active participants in the Indian commodity market. They take care of all transactions between buyers and sellers of capital risk according to the agreement they have with their clients called “Agreements”.

C) Commodities are also traded with forward contracts between farmers and exporters/importers who wish to protect against price fluctuations.

In Brief

The Indian commodity market is one of the largest and fastest growing in the world. It is also one of the largest commodity markets in India and offers excellent opportunities for those looking to capitalize on commodity market investments.

You May Read Also- Important Tips to Begin Trading the 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).

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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