Know to Trade Commodities Online by Following Basic Trading Process Including Gill Broking Trading commodities online have gained popularity nowadays among many investors. In online commodities trading not only trades are carried out in a much quicker manner with the aid of real live broker but also commissions are much minimum as well. However, benefits to trading commodities online are great as the investors can easily be aware of any hidden threats by using this simple method of trading. Trading commodities online also even allow you to do instant trading without making any with any live broker for the placement of your orders. Almost everything that is probably needed to trade commodities is widely available within an online commodity trading account, such as commodity news, commodity trading charts, or any technical analysis programs. One of the main disadvantages of trading commodities online is that a new investor may face any sorts of danger in trading online commodities and thus probably need the help of lots of homework and a mentor as well. Therefore, choosing the right online commodity broker is very crucial decisions that will surely enhance your trading career. Thus, selecting an efficient broker not only fulfills your requirements but also compensates any shortcomings in your trading career to lead it towards success

Know How to Trade Commodities Online by Following Basic Trading Process

Commodities together with their other related standardized financial products are basically traded on exchanges between financial institutions and investors, even online due to the popularity of the internet. However, how to trade commodities online on your own will need you a strong understanding of the market as well as you should go through the following steps.

1. Educate yourself about trading commodities online

Trading commodities online have originated for many years and mainly based on the exchange of commodities online with the selling of futures contracts so that the manufacturers can easily purchase contracts to guarantee the input of production price at a future date. However, investors are there in the global trading market to observe the price alteration in commodities online and related securities.

2. Learn to take risks in trading commodities online

The tradition of trading commodities online trading is considered much riskier than any sorts of stock trading as most of the online commodities are purchased on margin rates in the form of futures contracts. This actually referred to the fact that the trader typically invests money on loan by paying a minimum amount for a huge number of commodities. However, this also means that you can have the chance to lose an ample amount of money and even sometimes, you need to make up the loss that is actually much more than that you have initially invested.

3. Study and use different chart patterns and technical analysis to know about trading commodities online

Before you start trading commodities online, you need to thoroughly study various commodity trading charts so that you can visually identify trends or patterns involved in such trading process. These patterns will surely help you to see whether a commodity is at the topmost position or just bottoming out. Identifying the various trends of trading will also even aid you to decide whether you want to buy and sell commodities. Now, once you have developed such trading ideas utilizing charts, next step is to take a detailed look towards trading using technical analysis, which actually includes the process of predicting the direction of a price of a commodity by observing the behaviour of its past price activity, i.e., changes in price rates or volume.

4. Update yourself about commodity trading platform

Trading commodities online will definitely need you an account with a specialized type of futures trading platform that is available in numbers over the internet. Although there are several disreputable platforms, therefore, ensure that you do a thorough research before choosing the correct one. The platforms also even offer trading tools as well as different cost structures for traders, thus, you need to compare options before you choose one according to your requirements.

5. Need to develop the right trading methodology

Using technical analysis or studying chart patterns are just not enough to devise the system of trading commodities online. A few more things you need to consider before executing any trades including exit strategies, setting up entry, or even developing stop orders to safeguard your money that possess the ability to sell a security automatically as soon as the price decreases below a definite level. When you are trading commodities online, you need to develop good money-management skills simply to preserve your capital money. Most importantly, you should always avoid overtrading, which may enhance your overconfidence in making too many unprofitable trades into one of them profitable in a much quicker manner.

6. Test your trading system

Just don’t be in a hurry to invest your money at great risk. Instead, you need to test your online commodity trading process thoroughly. You can observe by going through your system whether it is absolutely fair to use it actually in the marketplace. Even, you will see that most online brokerage firms provide their clients with free of testing trade service for 15 days or a month. Furthermore, the simulated trading option is equipped with different features like real-time indicators or real-time quotes and charts.

7. Open up an online trading account

While starting trading commodities online you need to fill up the application form of any brokerage firm online and thus wait for the approval. Just keep in mind that a minimum-balance requirement is present that you should meet first. You can also ask your hired broker regarding the minimum balance needed for the company.

8. Opt for light leverage

You also even needed to lessen your risk by reducing the leverage that you actually need. At first, you need to entitle much less than the actual worth of any futures contracts, especially if you are new or inexperienced in the commodity trading market. You need to trade with one or two contracts at a time for the first time to limit your risk as well as leverage. By doing such things, you can easily avoid the pitfalls that sometimes affect numerous online commodities traders.

9. Read more about commodities to develop new trading ideas

You need to make a habit to read about the different financial news on trading commodities online daily so that you can easily get a clear picture or idea about the function of the global trading market. You can also even find out whether the price of the commodity rises or drops every day and by what exact amount. You can learn about the price of any commodities whether has been trending up for the past days or not, due to the uncertainty of the global trade investors. Furthermore, various financial news will also let you aware of the fact that whether futures contracts are going to expire or not.

10. Understand the different forms of securities and contracts about trading commodities online

A trader can usually predict about online commodities prices on a number of factors. However, online commodities are hardly traded in a physical manner. The logistics involved in trading actual online commodities are also even quite complicated. Instead, most of the market participants thus buy contracts or securities associated with online commodities. Some of the financial products include Commodity stocks, Exchange Traded Funds (ETFs), Commodities futures, or Mutual funds.

Basics of Online Commodity Trading

Online commodity markets have extended exponentially and its turnover has increased manifold in the past decade. The foremost reason for the dynamic growth in trading online commodity markets has been the desire of making high profits as well as the lucrative opportunity for traders to enhance their investment to reduce risk. However, before you make an investment in the online commodity market, you need to understand the basics of trading commodities online.

The basics of trading online commodities also include some types of commodities that can be easily stored, such as oil, corn, or gold. In contrast, there are a few commodities like milk that possesses a very short shelf life. Acquiring the basic knowledge of online commodity trading for a given number of commodities will give your sufficient understanding to trade with them in the future. Moreover, every trader should also update himself regarding the decisions of a number of producers or buyers of online commodities that will ultimately control the trading markets of various online commodities. Therefore, most of the variation in commodity prices is not at all based on the fundamental reason of demand or production as it may also vary due to the anticipation of global trading market factors by a large number of buyers or sellers. Thus, successful trading commodities online require the ability to expect the activity of other traders present in the commodities market. Utilizing chart patterns or technical analysis aids a new trader to forecast where the commodity trading market is actually going mainly because the various trading patterns in the prices of online commodities tend to repeat at a regular interval. Knowing the basic analysis patterns will help you to trade in a smart way together with the useful knowledge to do trading and making profit successfully from trading commodities online.

Trading successfully in online commodities, most of the traders should start to learn the elementary rules of commodity trading online. Trading commodities are nothing but trading with futures commodities. Producers, as well as the processors of online commodities, purchase or sell futures contracts to be delivered on a certain date at any time in the next week, months or years. Even, the producers or the processors are also typically getting around their investment risk and aiding in providing a stable trading market for any online commodities. Furthermore, investors can trade with the same commodity futures contracts by purchasing or selling futures or they can choose buying or selling options on different futures contracts. Therefore taking training in trading commodities online is really a good start for studying the basics of commodity trading. For the interested new traders, there are various options in trading online commodities markets, which will not only offer basic knowledge but also provide the deeper insight from different experience traders of the global trading market.

More about Gill Broking

Brokerage firms serve every investor clients who want to trade in online commodities, public stocks, and many other securities, generally by hiring traditional online commodity brokers or any full-service firm’s agent stockbrokers to execute a bond trade or stock.

If you are new to the financial markets of trading commodities online and also even prefer to invest in a smarter way then you need to follow Gill Broking, one of India’s most prominent financial services mediators to aid you in every possible way like an expert guidance. Today, Gill Broking has progressed online commodity trading to a new grade by combining with customized services, appropriate investment plans, and digital safety in all types of payments. Therefore, Gill Broking is India’s most incredible allocation system as well as the biggest commodity house providing an exclusive variety of online commodity trading services together with various investment solutions. Gill Broking actually believes that it offers its clients the best possible trading service either in terms of trading with online Commodity Exchange or simply fulfilling each of their requirements. Even, such type of broking process will also help new or old traders to invest properly in different commodities, stocks, mutual funds, free investment advisory, digital trading platforms at a much cheap brokerage fee. As a matter of the fact, with the use of recent advanced technology, Gill Broking has been able to provide all their clients with the ultimate perspective for profitable trading in all sorts of the trading market combined with connected information. In short, Gill Broking is offering a state-of-the-art knowledge, inquiry in broking, counseling to earn more profits, and extensive support in research to open up new trading opportunities for every client.

Bottom line

Trading online commodities are actually not for the faint-hearted traders. However, it has the capability to secure your investments against all sorts of inflation. With the help of only a few accurate predictions as well as calculations, you can easily earn a high amount of returns in the global online commodity market trading of different online commodities.

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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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