What is Intraday Trading

Commodity intraday trading denotes buying and selling of commodities that too within the same day. Besides this, the intraday commodity is regarded as a secure alternative when compared with Equity same day trading. A consumer can get into the commodity market with a very low margin, for instance, X% of the contract worth. A person must have an online trading account in order to carry on intraday trading.

There are four basic principles with every trading strategies, which must be borne in mind while intraday trading. They are:

1) Trade with the drift,

2) Cut losses short,

3) Let earnings run and

4) Handle risk.

Be sure to include each and every one of these prerequisites in your trading strategy for achievement.

Tips for intraday trading in commodities

Commodities trading are a futures-dependent market and it means that you will bet on the direction you suppose the market is heading. It is believed to be a ‘speculative market’ as the entire trading is dependent on assumption and you simply cannot make out what will occur. The bright part is that there are merely 2 directions either up or down. When trading you should not concentrate on the real price but you need to perceive the direction in which the market will move. Below are mentioned a few important intraday trading tips for you to follow:

  • Spread your holdings

While broadening your holdings is an axiom for any type of investment, it is predominantly appropriate for commodities trading, where anything may end up in the wrong. The main attracter to this kind of market is the potentiality for large profits. Together with this advantage comes the matching sized danger for enormous losses. Rather than going all out to claim all the profits thereby losing huge, plan to diversify. When you have different instruments then it lets you seek high profits at the same time as a palliating risk.

  • Trade ETF’s

You can deal with the commodities market without really trading in commodities. For this, you can use instruments called exchange-traded commodities, or ETF’s. These instruments actually act like mutual funds of the commodities market.

  • Stake in the futures market

There are diverse issues that source commodities prices to shift up or down, so you should not use your know-how of stock investment in this market. The prices of commodities that increase today may not be good for you to buy, as they can fall drastically tomorrow. Commodities prices are time and again cyclical, so the method to make money is to find out which commodities prices will increase tomorrow or maybe next week.

  • Good News may not be good

When there is good news in the industry is most likely that such news will regularly sway the prices of the commodities in a negative manner. This is unreasonable however imperative to bear in mind while trading. Never do the mistake of taking positive news stories as indications for an increase in the commodities price. For instance, if a gold mining company locates a new mine with loads of prospects, the company’s share prices will surely increase, nevertheless the cost of gold will reduce due to the laws of supply and demand as surplus supply will decrease the prices of that commodity.

Start your intraday trading in commodities with Gill Broking as we will assist you to make excellent trading decisions. Our innovative products, as well as our years or rewarding experience, will make your intraday trading very interesting. We provide a variety of products which will help you to attain volume slabs quicker as well save on brokerage.

Also, Read – Intraday Trading Indicators | Intraday Trading Time Analysis | All About Orders

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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/MD011-40345555admin@gillbroking.com
2 Charanpreet GillWhole Time Director011-40345555gillbroking@gmail.com
3 Charanpreet GillCompliance officer011-40345555compliance@gillbroking.com
4Manpriya GillDesignated Director-1011-40345555manngill04@gmail.com
5Kewal GillDesignated Director-2011-40345555fvwealth@gmail.com

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