Commodity trading is the practice of trading in commodity products, which are the raw materials and resources that are used for making refined goods. These materials include natural gas, steel, iron, cotton, silver, pulses and grains.
Commodities are typically traded on certain exchanges, and the volatility of commodity prices in the market opens up trading opportunities. Traders can also utilise leverage for magnifying their gains. Additionally, the schedule flexibility and portfolio diversification that commodity trading allows for make it a lucrative investment for traders.
What should you keep in mind while trading commodities?
As a commodity trader, it’s essential to consider factors like price or leverage risk, risk management strategies and other contributing elements. Commodity prices fluctuate with changes in supply and demand and manufacturing as well as consumer trends. Hence, before investing in your market you should know the fundamentals of types of commodities and contracts, along with an in-depth understanding of the market. With financial transactions and trading being moved online and to various digital platforms these days, there are some benefits that a trading website or a commodity trading app can offer. In order to find the best commodity trading app, make sure to assess all the features of the app. Here are five features or advantages of using a commodity app.
Advantages of using a commodity trading app
1. Power trading: With the help of an app traders can create multiple positions across different segments, and manage them all from the same app or even one single screen. Ideally, the best commodity trading app manages to integrate all your areas of interest in one place for the sake of efficiency. An app like the MO trader app can make squaring off open positions an instant and hassle-free process.
2. Real-time updates: Trading apps can provide real-time updates that simplify performance tracking. You can get total Mark to Market (MTM) updates as well as overall margin updates to keep track of limit utilisation, a feature offered in the MO app. This will help you stay ahead of the game and find the right opportunities at the right time.
3. Market News: Not only can you get updates on your expiry week actionable, but also the latest news on stocks, open positions, available limits, pending orders and margins. Getting instant access to verified news across companies, markets, industries and stocks in your portfolio help you make informed decisions.
4. Get quotes and price alerts: With an app, not only can you get detailed Market Depth and Technical summaries, you can also access Open-high-low-close charts (OHLC) and Interactive Charts to observe price movements. The weekly and monthly technical indicators will keep you up to date. A useful feature of a commodity price app such as the MO trading app is the ability to set up a notification system for price alerts at your desired price level for a particular script or exchange, and you will be notified through your app and even email.
5. Advanced search and selection mechanism: Certain apps and online platforms have a global search feature, which you can peruse and add the scrips you are interested to your watch list. Apps make placing buy or sell orders a matter of a single tap on the screen, and having access to real-time market feed further simplifies the process.
Conclusion
Every investor and trader has different goals and having an app that can present all the market opportunities in one place can help you find the options best suited to your needs and preferences. The MO trader App not only encompasses all the above-mentioned features but also has additional plus points like the slice order feature, access to over 19 technical market screeners, options matrix in a single screen, detailed real-time trading reports and customizable screen display.
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