Commodity Trading

Commodities Traded in India Online

Below are the list of commodities that are traded in Indian commoditiy exchange.

Benefit and Advantages Offered by Online Commodity Trading

The biggest advantage of trading in commodities through Future contracts is ease of entering and exiting this type of investment. What exactly a trader is required to do is filling the margin requirements and executing the trade. Rest leave upon the exchange to check through your transaction from there.

Apart from the ease of doing trades, the other benefits offered by Trainers Stocks as an online commodity trading facilitator include:-

• Diversification of Portfolio:

  Commodities helps to diversify a portfolio. The return on commodity trading have not impact upon its performance, whatever the price bonds and equities are faring in the market. It has been seen that returns on commodity keeps on rising despite the fall in prices of primary asset class including bonds and stocks. For example, the price of gold keep on rising despite the fall in price of stocks in equity market.

• Protection against Inflation:

  Inflation makes an adverse impact upon commodity trading in comparison to financial assets like stock and bonds. With the deprecation in the cost of currency during inflation the real value of financial assets get eroded. However, the cost of commodities remain constant even during the period of high inflation.

• Hedging Against Risk:

  The biggest benefit offered by commodities trading include is hedging against risk, primarily, event risk. War like situation along with equities impact commodities, negatively. So, commodities trading acts as potential hedge against some event risks and easily meet out fluctuations in price of commodities.

• High Liquidity:

  The liquidity offered by commodities futures is very high and they are quite easier to buy and sell. An investor can easily liquidate his position whenever he feels like quitting it.

• Trading Even on Lower Margin

  The margin required for future contracts in commodities happen to be far lower required by a broker. The margin, thus, there happen to around 5–10% of the total value of the contract and is lesser than the margin required by other asset classes. Thus, a trader can take large positions even with a lesser capital in commodities trading.

• High Returns:

  Commodity markets are volatile. They can experience huge swings in prices. For example, war in a major oil-producing country like Iraq can cause oil prices to shoot up. Smart investors can take advantage of these price swings to make gains. Well-planned commodity investments can provide higher returns than investments in other assets.

• Easy Trading Facility:

  For commodity buying and selling, whether, on smartphone or from computer, doing it online is the easiest way to carry out transaction with an ease. What a trader required to follow is opening a trading account and can begin it from the comfort of home.

• Preserve Speculations at Fingertips:

  At the same time as doing buying and selling you will no longer most effective be capable of seeing the contemporary standings of commodities but can also be capable of reading via the speculations regarding them and how experts experience about their destiny trends. This allows you make a far higher and well-informed selection, thereby elevating your chances of creating an enormous amount of income.

• Automatic Commodity Buying and Selling:

  Consider yourself lacking out on excessively valued earnings just due to the fact you could not order for it to be bought simply in time. With online commodity buying and selling, you could now put your commodities on sale over a selected price using an automatic commodity buying and selling system.