Commodity Trading - Share India
Open Free Demat Account
*T&C ApplyHow Can You Invest in SGB?
Even in the most hostile cases, gold has performed better than other strategic assets. It is frequently purchased as part of a portfolio diversification strategy to lessen losses from other asset classes. Investors begin investing in gold in different forms after realizing its potential. In addition to being purchased in physical form, gold can be invested in Sovereign Gold Bonds (SGBs). These bonds are a better option than actual gold because they provide periodic interest and market value at maturity. Before you start thinking about SGBs as a possible investment, let’s learn how to invest in SGB online.
What Is Commodity Trading?
If you are tracking the stock markets, you will observe several phenomena, like the relationship between stock prices and raw materials (commodities). For example, when crude oil prices shoot up, you will see a meaningful decline in the stock prices of those companies relying on crude for their daily operations. Even the best companies’ stock will get impacted.
In such a scenario, wouldn’t it be nice if you could bet on the price of crude oil increasing? The thing is, you could do that by trading in the commodity markets, yet many people don’t do that. So, let’s look at how you can profit from such situations by learning more about commodity trading.
The Role of Economic Indicators in MCX Trading
In the world of commodity trading, where prices fluctuate based on numerous factors, economic indicators play a crucial role in guiding traders. The Multi Commodity Exchange of India (MCX) is a significant platform where various commodities such as gold, silver, crude oil, and natural gas are traded. Understanding economic indicators can give traders an edge […]
What Role Do Central Banks Play in Setting Gold Rates?
The relationship between central banks and gold prices is a complex one, with the former often playing a pivotal role in shaping the latter. Central banks, as custodians of their nations’ economies, wield significant influence over various financial markets, including the precious metals market. This article delves into the multifaceted ways in which central banks […]
Commodity Market Trading Timing in India
Trading in commodities may be thrilling and fast-paced, but you need to know when to act. You must be aware of the opening and closing times of the commodities markets in order to succeed in this industry. Knowing when to purchase and sell may make or break your profits, whether you’re a seasoned trader or just getting started.
To help you keep on top of things and make wise trading decisions, we’ll cover all you need to know about the MCX timing and trading hours of the commodities markets in this post.
What Are the Most Traded Commodities in India?
Food, metals, oils, and other items that people use on a daily basis are included in the category of commodities. Commodities can be bought and sold and have a dynamic nature. Simply put, commodity markets are locations where people can purchase, sell, or exchange commodities. In India, commodity trade first appeared in 1875.
Although foreign invasions, government regulations, natural disasters, etc, led to a decline in commodity trading. However, compared to other types of the stock market, commodity trading has performed well in the past and is still gaining popularity. SEBI has been overseeing the commodity market’s regulation since 2015. There are a number of items traded nowadays. In this article, we shall look at the best commodities to trade in India.
How to Trade Commodities
The online commodity trading platform lets you invest in precious metals as well as daily necessities and earn profit each time their value increases or decreases. While long-term trades allow you to profit from price increases, short-term trading lets you buy high and sell low.
Trading online in commodities is an effective method to hedge against geopolitical and inflationary events. Investors can also diversify their portfolios, significantly lowering their risk of squandering capital. The market for commodities generally works in opposition to the capital markets. For instance, if inflation rises or GDP declines, the shares of companies could slide, while commodities may show extraordinary strength.
How Is Gold Price Determined in India?
Indians are known for many things across the globe, their culture, hospitality, food, colorful festivals, bollywood, dance……. and the list is endless.
What Is the Importance of the Commodity Market in India?
Commodity markets in India play a significant part in our country’s economy. These markets enable the trading of various commodities such as agricultural harvests, metals, and energy products. We have conducted research and narrowed down to some key roles that display the importance of the commodity market in India. Below, we have jotted down some of these key roles of the Indian commodity market.
Top Four Trading Commodities in India
Commodity trading allows you to buy and sell commodities y products similarly to stock trading, which allows you to do so with company shares. The purpose of this trading is to make money by buying and selling commodities in response to changes in the commodity market.
The practice of trading commodities has changed over time. Additionally, a huge variety of commodities are available on the market right now. Later in this article, let’s look at the top commodities to trade in the Indian market.
Understanding the Role of a Commodity
A commodity is a raw resource or primary agricultural product that can be purchased or sold, such as gold, silver, crude oil, natural gas, and agricultural crops like wheat, rice, cotton, and others. Indian investors frequently trade commodity through platforms like the Multi Commodity Exchange (MCX) and the National Commodity and Derivatives Exchange (NCDEX). Topics we are going to discuss later on in this article.
List of Commodities that Are Permitted for Futures Trading
India’s commodity futures market has been there for more than a century. In order to trade cotton derivative contracts, the Bombay Cotton Trade Association formed the first regulated futures market in 1875. Institutions for trading in oilseeds, food grains, etc.used this as their model for trading. Between the First and Second World Wars, the Indian futures market expanded quickly. Numerous commodity exchanges were flourishing nationwide. They traded futures contracts in a variety of commodities like cotton, groundnut oil, jute, rice, and precious metals like gold and silver. Now, all these items are also available for futures trading. So, let us find out the list of commodities in mcx (Multi Commodity Exchanges) of India allowed for futures trading.