What is commodity trading in India?

The process of electronically buying and selling commodities in the commodity exchanges is the commodity trading meaning.

Which are the types of commodities that I can trade in India?

Commodities are classified into the four categories - bullion, metals, energy, and agriculture. When it comes to commodities trading in India, you can trade in the following. - Bullion - gold and silver - Metals - copper, zinc, aluminium, lead, steel, and nickel - Energy - crude oil and natural gas -

How to invest in the commodity market?

You can invest in the commodity market by either purchasing commodity futures or commodity options. Also, you have the option to purchase futures contracts or options contracts of commodity indexes as well.

Is there any limit to the quantity I can trade/hold in any given commodity at any point in time?

Yes. Commodity exchanges set maximum permissible limits on the quantity of a commodity that can be traded or held. This limit varies from one commodity to the other.

Is there any limit to which live commodity prices can rise or fall in a day?

Yes. In the commodity market, both upper and lower price limits are set for each commodity. And if the commodity prices are found to be breaching these upper or lower limits, trading on the said commodity is stopped for a brief period of time.

Is there any limit to the quantity I can trade/hold in any given commodity at any point in time?

Yes. Commodity exchanges set maximum permissible limits on the quantity of a commodity that can be traded or held. This limit varies from one commodity to the other.

How do you trade agricultural commodities?

There are two primary ways in which you can trade in agro commodities - through commodity derivative contracts or through commodity index derivative contracts.

Is commodity trading profitable in India?

Profitability on commodity futures contracts or options contracts depends on your position and the market movement. If the market movement ends up being favourable to you, you can make significant profits

COMMODITY TRADING ONLINE

Commodity trading brings a basket full of diverse avenues for investment, away from the traditional avenues of equity, bonds and real estate. Based on the historical data, adding commodities exposure to your existing portfolio helps you increase the returns while lowering the risk. Commodities have very little or negative correlation with other asset classes.