Monday 29 January 2018

Trading and Investing in Commodity Market




This is the exchange for Trading commodities; as same as the NSE/BSE is for trading stocks of companies. You can trade gold, silver, and other precious metals along with agriculture commodities like cotton, coffee etc

To Trade Commodities with India’s leading Commodity discount broker, open a free commodity trading account today! It is an independent and open commodity exchange based in India. It was established in the year 2003, Mumbai.

Some suggestions to trade in the commodity market that a trader must follow are:
  • Define certain strict limits to define your damage.To start trading wait for the right time.
  • Don’t change your way of reaction toward trading as we can see that markets trade in the same direction for a long duration of time.
  • Expert consultant from a good advisory and follow his Commodity trading tips for trading. Judge them on the basis of their reputation and the accuracy they provide in their tips. And also do not change your advisor on an initial and little damage as the stock market is a highly volatile place and your advisor or consultant is the only ones who can help you in the worse condition.

How is the spot price of a commodity determined?

Prices are captured and collected at identified basis centers by getting price quotes from various variants in the market and the overall chain system representing various levels viz. farmer, grader, miller, auctioneer, importers, traders etc, and then the prices are circulated after eliminating the outliers. This eliminated price is used for the settlement of derivative contracts on the MCX at the expiry of the contract.


As compared to other markets in the recent years, commodity market has performed comparatively better than other markets like bonds, equity or currency. However, the participation in future trading in Indian commodity market is very low as compared to other countries still it marks their footprint over the global market.  Commodity trading includes gold, silver, lead, nickel, zinc, aluminum, copper, crude oil, natural gas, menthol, soybean, guar seed, turmeric, cumin seed, palm sugar, gram, mustard seed and more.

It is advised to get commodity trading tips and commodity trading news from a well-known stock advisory company which provides essential tips. They have data about the market which is based on research by using various technical tools & experience.



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