Commodity Market

What is the Commodity Market?

Imagine a huge digital version of a local Mandi or wholesale market. Instead of trading shares of a company (like Reliance or Tata), you are trading raw materials that the world uses every day. When you trade here, you are basically betting on whether the price of things like Gold, Oil, or Jeera will go up or down.

Why should I even care about commodities?

• Safety: When the stock market is doing badly, Gold often does well. It's like a "spare tire" for your investments.
• Beat Inflation: If the price of petrol or food goes up, your commodity trades might actually make you money.
• Small Start: You don't need the full price. If you want to trade ₹1 Lakh worth of Gold, the exchange might only ask you for ₹10,000 as a "security deposit" (called Margin).

When can I trade? (The Timings)

The commodity market is perfect for people with day jobs because it stays open much longer than the stock market!

• Monday to Friday: It opens at 9:00 AM.
• The Night Shift: Most items (like Gold and Oil) trade until 11:30 PM (or 11:55 PM in winter).
• Agri-items: Most farm products (like Spices) stop earlier, usually around 5:00 PM.

What can I actually trade?

It's usually split into four simple buckets:

1. Bullion: Gold and Silver.
2. Energy: Crude Oil (petrol source) and Natural Gas.
3. Metals: Copper, Aluminum, and Zinc (used in buildings and wires).
4. Agri: Things from the farm like Cotton, Rubber, and Spices.

Who is allowed to trade?

Pretty much any Indian adult! As long as you have a bank account and a PAN card, you can get started. It’s used by everyone from big jewelers and farmers (to protect their prices) to regular people looking to make a profit.

Where does the trading happen?

In India, there are two main "digital halls" for this:

• MCX: This is the most popular one. It’s where almost all the Gold, Silver, and Oil trading happens.
• NCDEX: This is the specialized market for agricultural products like Soybeans or Guar seed.

What are the most popular items in India?

The Big Three that most beginners start with are Gold, Silver, and Crude Oil. They are the easiest to buy and sell because there are always thousands of people trading them at any second.

Do I need a separate account?

Not a separate Demat Account, but a separate switch. You can use the same trading account you use for stocks, but you have to ask your broker (like Motilal Oswal) to activate the Commodity Segment. Because it’s a bit more advanced, they will ask you to upload a simple document like a 6-month bank statement to prove you're ready.

How do I buy my first commodity?

1. Activate: Log into the MO RIISE app and enable "Commodities."
2. Add Funds: Move some money into your trading wallet.
3. Search: Type "GOLD" or "CRUDEOIL" in the search bar.
4. Pick a "Lot": You don't buy 1 gram; you buy a "Lot" (a fixed amount).
5. Click Buy: Just like a stock, click buy and set your price!