Expert Commodities Investment Strategies -Motilal Oswal

What are the fundamental commodities trading investment strategies

Commodities Trading Strategies

A commodity is a marketable, transportable object created to meet certain requirements or purposes. Goods and services are examples of economic commodities. The core economic sector, rather than produced goods, is traded on a commodities market. The tactics listed below may be used as a starting point for your commodities trading.

  • Online Commodity Trading With Moving Averages: The moving average is one of the most popular technical methods in commodities and the stock market. Moving averages are the most often utilized approach for determining the market's trend as well as establishing support and resistance levels.
  • Futures and Options Trading: Any approach might be suitable and operate in the market because of the combination of future and choices. Using options with futures makes the deal more conventional, yet it produces excellent results.
  • Trading Commodity Spreads: A spread is purchasing a commodity and simultaneously selling the same or a comparable commodity. It chops down the risk of purchasing a pure commodities investment quite drastically.
  • Specializing on a Single Commodity: Keeping track of all the commodities might be tough, since there are roughly thirty actively traded commodities. As a result, focusing on trading just one kind of commodity and profiting from it is a good move. For example, gold is one of the most profitable commodities to trade. It is constantly in use, and the prices fluctuate on a daily basis. Whether you're a day trader, a long-term trader, or an investor, this provides the finest trading opportunities.
  • Commodity Trading Breakouts: One of the finest tactics for trading in trending markets is to trade breakouts. In order to develop a new trend, the market must break out of something in this commodities approach. The method is a little difficult to grasp since not every trend will work in the long term.

Commodity trading is one of the riskiest but most lucrative types of stock market trading. The Indian blend offers a wide range of goods to trade. One may earn money as a day trader, a long-term trader, or an investment.

What are commodities futures and how do they work?

Commodity trading in India occurs on either the spot or futures markets. Commodity trading takes place on spot marketplaces in real time and for cash. Follow commodity futures prices in real time to see how they fluctuate. Buyers and sellers exchange commodities in the futures market based on a standardized contract that considers future pricing. Futures contracts are traded electronically, and they may be paid in actual currency.

What are the names of the commodities exchanges?

There are commodities exchanges in India, such as the NCDEX, MCX, and ICEX.

Selecting a suitable commodities broker

When it comes to commodities trading, you must choose the correct partner broker. There are many brokers, but only a select handful may become lifelong friends. Motilal Oswal provides commodities trading services to its customers. Trading of commodity derivatives in terms of futures and options is part of the tailored commodities trade and investment services provided by a competent and informed team of specialists.

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