COMMODITY TRADING ONLINE
Commodity trading brings a basket full of diverse avenues for investment, away from the traditional avenues of equity, bonds and real estate. Based on the historical data, adding commodities exposure to your existing portfolio helps you increase the returns while lowering the risk. Commodities have very little or negative correlation with other asset classes.
- Secured Trading Experience
- Intraday and Positional Advice
- Daily and Weekly Market Reports
- Dedicated Advisory Team
The process of electronically buying and selling commodities in the commodity exchanges is the commodity trading meaning.
You can invest in the commodity market by either purchasing commodity futures or commodity options. Also, you have the option to purchase futures contracts or options contracts of commodity indexes as well.
Commodities are classified into the four categories – bullion, metals, energy, and agriculture. When it comes to commodities trading in India, you can trade in the following. – Bullion – gold and silver – Metals – copper, zinc, aluminium, lead, steel, and nickel – Energy – crude oil and natural gas – Agriculture – cotton, cardamom, crude palm oil, mentha oil, rubber, kapas, chana, barley, bajra, wheat, guar seed, guar gum, castor seed, soybean, turmeric, coriander, moong, maize, paddy, jeera, mustard seeds, sesame seed, gur, and more.
To start online commodity trading, you need to first open a trading and demat account with a trustworthy broker such as Motilal Oswal. Once you’ve opened an account, you can then proceed to invest in the commodity market online through the trading portal of your broker. That said, you can also use commodity trading apps of your broker to conduct trading through your smartphone.
Yes. Commodity exchanges set maximum permissible limits on the quantity of a commodity that can be traded or held. This limit varies from one commodity to the other. Here’s one of the best commodity trading tips that you can use. When buying commodities, to know the maximum permissible limit for a given commodity, all that you need to do is visit the commodity exchange’s website and read through the contract details of the desired commodity.