Someone might have said to you that online commodity trading will make your rich in no time. However, it is not as simple as that. If you really want to start earning a profit in commodity market then you would first need to understand the mechanism which is being followed by the Indian commodity market. It is only after which you will need to understand how to understand and learn where to invest and where not to invest. People have said to lose everything in the stock market and these were mostly the experienced people/ you cannot simply enter into the trading world without knowing about the whole thing.

So, basically, there are a lot of things that need to be understood well before you start investing your hard earned money in the online commodity market. There is no guarantee that you will earn profits every time you invest your money. It completely depends on your knowledge, the market and to some extent on your luck. If all these factors favour you, you will then be able to make money out of investing in the stock market.


The Indian commodity market has indeed one of the most complex mechanisms following which a person making profits gets the money delivered to his account. The process of online commodity trading begins when an investor invests his money by buying the shares of a particular company and selling it back at the right time. When one sells his shares back, the profits earned is delivered to his account. And if the person loses his money in the transition, the money is debited from his account automatically.

This whole process in Indian commodity market is called Trading Cycle.


The trading cycle of Indian commodity market can be broadly classified into three categories:

•    Trading

•    Clearing

•    Settlement


It is the process when a person invests his money in a particular company by buying the shares of the company. An experienced investor tends to invest in only those company which has a great track record in past and has a huge potential in future. Understanding these basic facts of online trading will help an investor to earn profits by selling the commodities back into the market also known as commodities exchange to earn profit. The trading process gets complete when the investor confirms his order and the money get debited from his account.


Clearing is the process where an institution acts as a mediator in between the buyer and the seller in order to maintain the authenticity of the transaction. The two such clearing houses in India are National Securities Clearing Corporation (NSCCL) managed by National Stock Exchange (NSC) and the other one is Clearing House (CH) managed by Bombay Stock Exchange (BSE). The clearing process involves a mediator to avoid any kind of fraud or malpractices between the buyer and the seller. These clearinghouses ensure that an investor gets his part of shares while the company gets their money. The money is never transferred directly from an investor’s account to the company’s account.


It is basically a part of the clearing process. When the complete transaction of the money and shares takes place efficiently, the clearinghouses then gives go-ahead for settlement. A settlement is only done after ensuring all the obligations of both the parties.

The tasks which are performed by clearinghouses during the settlement process are:

1.    Clearing all the trades.

2.    Ensuring pay-ins, if the shares are sold by the investor.

3.    Ensuring pay-out, if an investor buys shares from a company.

4.    Checking for any frauds or risks.


Now that you have learned how things are managed in the commodity market, you will now need to learn what you will need to do on your behalf. If you really are interested in online trading in commodity market, the first thing you will need to do is get in touch with a broker. Since the Indian stock market regulators do not allow an individual person to invest in the market hence you will need a broker to do so.

The brokers usually are the ones who are licensed and registered with the regulatory authority i.e. Securities and Exchange Board of India (SEBI). Once you register yourself with a broker, you can then trade freely in the stock market. Just remember to approach only those brokerage firms who have years of experience in online trading in the commodity market. In this way, you will be able to access their full support and guidance if necessary.

Or if you do not want to approach any private firm you can go with the banks. All the banks in India are registered under SEBI hence there is nothing that you need to worry about. After learning the basics and acquiring the knowledge, you are good to go ahead for commodity exchange to earn profit.

READ ALSO– 5 Ways & Tips To Make Money In Online Commodity Market

You may also like to read- Intraday trading Tips and Strategies to Earn the Profit

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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/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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