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!!

Start Trading Now

Share this Post

Get The Latest Updates

Related Posts

The Share Market A Guide to Trading (2)

The Share Market: A Guide to Trading – Gill Broking

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

We are here to assist you !
Fill out the form and Start Trading...