Online commodity trading is an effective tool and a way of investment for portfolio diversification and beating inflation. Commodity trading is the profitable business for traders where goods are traded instead of stocks.
What is the commodity?
Commodity explained as the product that is present naturally and acts as input for a secondary market for trading purpose. Commodities can be classified as agricultural products like cotton, wheat, jute etc and non- agricultural products like crude oil, aluminium, zinc etc.
How to start with online commodity trading?
To start with the online commodity trading person has to sell and buy commodities on the individual choice and market data. To start with the trade in future firstly open commodity trading account with help of a broker or financial intermediary who allows using virtual platform for buying and selling
Some of the benefits of Online Commodity Trading
1. The online commodity market includes trading of metals, agricultural products, energy offers to diversify opportunities for traders, manufactures, exports and imports to establish successful online commodity trading platform.
2. Commodity price solely depends on supply and demand of commodities. This gives ideas to understand when to invest for the particular commodity.
3. Investment in online commodity trading helps to diversify traders portfolio as online trading is carried out all over the world.
4. Indian commodity market is open for 14 hours a day, unlike stock market. Therefore online commodity market covers timings of major commodity exchange and provides ample of opportunities to trade online.
Online commodity trading can be categorized into four
1. Agricultural- This category includes agricultural products such as food crops cotton, soybeans, corn. Industrial crops like lumber, and wool
2. Energy- This category includes natural petroleum products such as crude oil, gasoline, natural gas, heating oil, and electricity.
3. Metals-This category includes metals like gold, silver, aluminium, nickel, zinc, steel etc.
4. Environmental- This category includes products such as carbon emissions, renewable energy certificate etc.
What causes the fluctuation in the price of online commodity trading?
1. Demand and supply of commodity- The developing countries like India and China require a large number of commodities for economic growth hence these countries require the large number of commodities for developing the variety of basic goods, raw material, livestock, metal to build infrastructure. Therefore increase demand for the commodities increases the price while decrease demand for commodities lows down the price of commodities.
2. Currency movement- If the value of dollars falls as compared to other currencies. It takes more dollars to purchase commodities than it does when the price is high and vise-versa.
3. Weather- Weather plays important role in fluctuation of the price of the commodity. In extreme rainfall causes the limit in crops which turns the price to be high. In winters the use of heating oil and natural gas increase the price of these commodities.
Why choose Gill Broking?
Online Commodity trading could be successful if done in the right way. But sometimes bad luck or bad timing or lack of awareness can easily sink returns. At Gill Broking, we help to select the right business by understanding business, investment requirements and take decisions accordingly. We help to decide your goal and plan investment strategies accordingly. We bring you with the latest updates and online commodity trading facilities to carry out your business in the right way. Get the facilities of SMS alerts plus cell in addition to trade which gives instant updates of online commodity trading market. Start your online trading today!!