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Empowering Growth through Commodity Trading

Commodities are raw materials agricultural products that can be bought and sold on commodity exchanges. They include products such as gold, silver, aliminum, oil, palm oil, cotton, black pepper, crude oil and natural gas. Commodity trading can be highly profitable but involves risks due to volatile prices influenced by various factors such as supply and demand, geopolitical events, and weather conditions. Traders can use various methods such as futures, options, and exchange-traded funds (ETFs) to invest in commodities. Commodity investing is also available through commodity ETFs and mutual funds. Understanding commodity basics can help traders and investors make informed decisions and manage risk.

Mini Future Contracts

Commodity mini futures contracts are a type of financial instrument that allow investors to trade on the future price of various commodities, such as gold, and silver. MCX (Multi Commodity Exchange) in India recently launched mini contracts for crude oil, natural gas, aluminum, zinc and lead. These contracts have a smaller size compared to regular contracts, making them more affordable for small investors. Mini contracts can help in increasing the participation of retail investors in the commodity futures market. These contracts are smaller in size than regular futures contracts, making them a more accessible option for individual traders. Mini futures contracts typically have lower margin requirements and allow for greater flexibility in trading positions. They also provide a way for investors to hedge against price fluctuations in commodity markets. By trading commodity mini futures contracts, investors can gain exposure to commodity markets and potentially profit from price movements while managing their risk.

Commodities Market

Introduction to commodities

Start by introducing your readers to the world of commodities. Explain what commodities are, what types of commodities are traded, and how they are bought and sold on commodity exchanges. This can be a good way to set the stage for more in-depth discussions of specific commodities. Traders can use the commodity calculator before buying any commodity.

Understanding commodity prices

One of the key factors that drive commodity trading is price.Prices can be affected by various factors, including supply and demand, geopolitical events, and weather conditions. Help your readers understand how commodity prices work and what factors can influence them.

Trading commodities

If your readers are interested in trading commodities, they’ll need to know how to get started. Provide an overview of the different types of commodity trading, such as futures, options, and exchange-traded funds (ETFs), and explain how each one works. You might also offer tips on how to choose a broker and how to manage risk.

Gold and precious metals

Gold and silver are one of the most popular commodities and for good reason. It’s a safe-haven investment that can help protect against inflation and economic instability. Cover the basics of gold trading, including how to buy and sell gold, how gold prices are determined, and what factors can affect gold prices. You might also discuss other precious metals such as silver, platinum, and palladium.

Oil and energy

Oil is another popular commodity that can be highly profitable but also volatile. Cover the basics of oil trading, including how oil prices are determined, what factors can affect oil prices, and the different types of oil contracts that are traded. You might also discuss other energy commodities such as natural gas and coal.

Agriculture commdities

Agricultural commodities such as mentha oil, palm oil, cotton, RBD palmolin, cardamom, castor seeds, and coffee are traded on commodity exchanges and can be affected by factors such as weather conditions, supply and demand, and geopolitical events. Help your readers understand how agricultural commodities trading works, what factors can affect prices, and how to get started trading these commodities.

• 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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