Here are describing the general procedure of commodity trading in India.
Commodity Markets – Where, all goods and raw materials traded and exchanged under the market regulated commodity exchange, on this commodity exchange commodity product bought and sold by the standardized contract.
Commodities Trading – Commodity trading is the one type of investment of commodity products. It is more similar to stock market trading but, instead of selling and buying shares of companies. Traders can do deal with the commodity product. Like commodities, stocks are bought and sold on market exchanges, where sellers and buyers work each together find the commodity products and always make a profit with fluctuating prices.
Getting started with commodity trading:
This blog explains starting level commodity product trading. Do you have any doubt what the really commodity trading market is? The commodity market is? Commodity market exchange is? Then you are choosing in the accurate place. Here we will describe the commodity trading tips from the scratch.
What is a commodity trading?
Each & every product or goods, that can bought and sold in the marketplace that is called “TRADING”. In Commodity market trading, whole buying and selling are done by the Internet or online of commodity product with the help of retail customers / traders. These are the major commodity products are Silver, Copper, Gold, Nickel, Zink, Crude Oil, Lead and Natural gas.
Trade in Commodity Market:
There are 2 types of commodity trading are there:
Online trading: In the online trading you can trade using internet on your own and sell & buy independently.
Advantage: On this commodity trading no anyone is misguide you. The broker can offer very lower brokerage and provide Commodity Tips for reliable trading..
Offline trading: In the offline trading, trader and investor call the broking firm for the trade and find the reliable services and commodity tips for trading.
Advantage: In this trading you can buy and sell your contract or agreement anywhere by the phone call and broker can help you for right entry / exit
You can select the any option which is best for you.
MCX (Multi Commodity Exchanges)
NCDEX (National commodities derivatives exchange)
MCX – Multi Commodity Exchange of India Ltd is an electronic commodity futures market exchange established in the year of 2003 and operated in Mumbai. It is the 6th biggest commodity market trading exchange in the world. Global products like Gold, Crude Oil and Silver are buying and selling in this market exchange with the most volume & liquidity. Many brokers and adviser are available in the market that can provide good MCX Tips for trading and help for making reliable profit.
NCDEX – In the NCDEX, all types of Agri products like Soybean, Jeera, Chana, and Rmseed is traded by this exchange.
SEBI in equity market,
FMC – Forward market Commission.
Example for Online Trading:
Mr. Vijay wants to earn money by copper, so this, he can observe copper price movement and its daily updates and decided and purchased the copper at 425*1000 kg = 4, 25, ooo/-. He paid opening margin money of six percent at least 24,000/- only, according to his expectation the price is going to 430/- approx 5rs increases in the month. He calculates the profit as 5*1000 kg = 5000/-
So = 24,000 margin investment+ profit 5,000 = 29,000/- () his current CAPITAL amount.
If the prices come downside by 5rs that means he made a big loss approx 5000/-
Here, 24,000 margin investment- loss 5,000 = 19,000/- his present CAPITAL amount.
Choose Brokers – There are many broking firms available in the marketplace. It is very difficult for choosing the right broker. Several established stock market brokers have sought to register membership with MCX.
Minimum Investment Amount – We can start minimum Rs. 6000/- investment amount in the commodity market. Different commodities are different amount. It varies according to time. For example, if you wish for to trade in gold (100g), you require approximately Rs. 8, 000 and for zinc, you require approx Rs. 5, 500. But initial your trading with Rs. 10, 000/- will be supremely good.
Transferring whole money to buy and sell – You can frankly deposit to Net-banking, brokers firm account, Demand draft and checks are every possible way. Mainly brokers will permit to all of the options. Only some brokers have problem fir checks system.
Basic things to open trading account:
- Bank account
- PAN Card
- Address Proof
Basic needs for Trading – You have to reliable and high speed Internet connection and a good commodity market broking firm or advisory company such as TRIFID RESEARCH. The broker will install the trading software on your computer and teach you for managing the trading platform. Even broker provide you live MCX Tips, commodity tips and NCDEX tips. But the premium tips are b forever best and also you can make more profit.
Trading Time – The open time of MCX at 10 AM and close at 11.30 PM. In these times you can deal.
Example for NCDEX Commodity: There are many Agri products included in the NCDEX commodity. Here are describe the soybean trading and market updates and reliable NCDEX Tips.
Soybean Trading & Markets:
In the commodity soybeans are available in the three different categories, No.1 Yellow is sold at 6 percent over the agreement price No.2 Yellow is sold at agreement price, and No.3 Yellow is sold at 6 percent below the agreement price.
As a commodity purpose soybeans have many special features. Firstly, in the world market soybean trading is staying on boom level for soybeans are huge. In American country, only the cattle & pigs use over the 25 million tons of soybean food. This is produced from soybeans, in per year. Soybeans are as well regard as one of the top commodities to contract with for that grave about trading. The top levels of interest & demand, coupled with very high liquidity leave lots of room for either huge loss or immense gain on the commodity trading market. The derivative components of soybeans also have traded at the commodity market exchange. For example, soybean oil, so as a soybean possess a large deal of suppleness when trading future agreement.
The two most important markets for the soybean have first been food market and second is fuel market. Soybeans are mainly used as the foodstuff the whole world over for together humans & livestock where they are seen as an economical food additive. Many large food corporations rely on soybeans for the animal feed, involving chicken farmers, pig farmers and even big fish farmers, who can use a fish food make of corn & soybeans. Soybeans are furthermore used in the construct of biodiesel, which has calculated for a higher rate increase in the soybean options in the very last few years.
The china was the first country that can produce and cultivated soybeans. But at this time United States America is the biggest country in the world that can produce soybean, It is the around 32% weight age of the whole production of soybean in the world.
There are only 31 states in the America that produce soybeans, with the pinnacle 3 being Illinois, Iowa and Indiana. Another specific production area is Brazil, where soybeans are on an equivalent footing with sugar and coffee as one of the major exports of the country.
Many factors influence the rate of soybeans as a great commodity. As with the majority, if not everyone, Agri products, the weather plays most important role in the yearly yield of every crop. Very Poor weather previous to the any crop is harvested will effect in a lower give up of crops, which could indicate that speculators buying and selling soybean futures contracts could lose out. An important second factor that has arrived to prominence in new years is the increase of a wind-borne fungal illness knows as soybean corrosion. This again will inferior crop yield and excellence.
Another major factor to think about when trading in the soybean options is the requirement for corn as utilize as ethanol. As both soybeans and corn are used to manufacture bio fuel, if the ethanol demand is higher than the biodiesel then the all farmers will utilize all of their area fields to produce corn. This will consequently mean that the supply of the soybeans decreases, and soybean spot rate increases.