Name: Commodity Trading
Brand: Motilal Oswal
SKU: 7
Rating: 4.7 (212 reviews)

Regd office : Motilal Oswal Tower , Rahimtullah Sayani Road , Opposite Parel ST Depot , Prabhadevi, Mumbai -400025; Tel No.:022 3980 4263. Correspondence Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 -3080 1000. Registration Numbers: MCX 29500, NCDEX -NCDEX-CO-04-00114. FMC Unique membership code : MCX : MCX/TCM/CORP/0725, NCDEX: NCDEX/TCM/CORP/0033. Website: <a style="color:#0056b3" href="https://www.motilaloswal.com/" >www.motilaloswal.com</a> Investment in Commodities is subject to market risk and there is no assurance or guarantee of the returns. Please read the Risks Disclosure Document and Do's & Don'ts prescribed by the commodity Exchanges carefully before investing. Details of Compliance Officer: Name: Ms Sharmilee Chitale, Email ID: <a href="mailto:sc@motilaloswal.com" style="color:#0056b3">sc@motilaloswal.com</a>, Contact No.:022-38281085.

 

Customer having any query/feedback/ clarification may write to <a href="mailto:query@motilaloswal.com" style="color:#0056b3">query@motilaloswal.com</a>. In case of grievances for Commodity Broking write to <a href="mailto:commoditygrievances@motilaloswal.com" style="color:#0056b3">commoditygrievances@motilaloswal.com</a>

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Commodity Market Live - Online commodity prices and trading in commodities market at Motilal Oswal. Get updates on live commodity prices and learn all about online commodity trading here. Invest in commodity market today to get the most out of your investments.

Commodity Market Live: Commodity Prices And Commodities Trading Online - Motilal Oswal

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Gold prices witnessed a fall from the high of ~$1810, amidst fed's hawkish comments regarding the economy and assurance to the market about the Fed's tapering timeline. He added that the monthly purchases are expected to end by mid-2022. Although, gold is still trading in a higher range around ~$1790 mark amidst inflation concerns, China's troubled property sector and updates regarding U.S.-china trade war giving confidence to the market. Although, there are news regarding multiple outbreaks in atleast 11 China's provinces and there are expectations of new cases rising further as areas affected by Covid outbreak may expand, hence updates on the same will be important. Today metals have stayed on a positive note after they extended their downward path on Friday, pressured by uncertainty over China's moves to dampen down coal prices and as speculators squared positions ahead of the weekend.

Commodity Daily

Bullions continue to show strength amidst slightly lower dollar move, inflation concerns and uncertainties regarding China's troubled property sector. There was a slight pressure seen on the prices amidst rise in the yields and Positive weekly jobless claims. The data yesterday was reported lower than expectations hence putting pressure on the gold prices. Evergrande had missed two coupon payments on its dollar bonds on Sept. 29, starting the clock on 30-day grace periods for payment. Base metals complex saw selling pressure as Evergrande crisis threatens to hit demand in China. With the property sector representing nearly a quarter of Chinas economic output, the collapse of company could send shock waves across the commodity sector. The power crunch in China and electricity price hikes in Europe have raised concerns about supply shortages in base metals, some of which have inventory levels at multi-year lows.

Gold prices rose for a second day in a row on the back of a weaker dollar and supply chain concerns. Although, the volatile bullion 'silver' did outpace the gains of gold posting its biggest two day run up since Jul'21. Apart from inflation expectations, weaker U.S. economic data and updates regarding U.S. - China trade war and IMF's report to cut the growth forecast for the Asia- Pacific region by 1.1% from its previous outlook, also supported the gains for bullions. Two U.S. Federal Reserve officials said that while the central bank should begin winding down its stimulus measures, it was too soon for interest rate hikes. Russias gold reserves stood at 73.9 million troy ounces as of the start of October, as compared to 73.8 million Troy ounce at the start of September. Market participants today will focus on the weekly jobless claims data and if it is reported better than the expectations it could support the metal prices.

Gold traded steady after sliding from the top of $1800 it touched last week on the back of positive U.S. economic data and uptick in dollar and yields. Last week, bullions did witness a push on the upside from higher U.S. CPI data proving the 'gold being an inflation hedge' dialogue. Although, lower than expected jobless claims and positive Retail sales data which was marked at 0.7 against the expectations of -0.2%, weighed on the prices. Most Fed policymakers agree the central bank could start reducing its monthly bond purchases as soon as next month, they are sharply divided over inflation and what they should do about it. On data front, China's economy grew slower than expected in Q3, which is supportive for the gold prices. Today, Investors will keep an on the U.S. Industrial production data which if recorded lower than the expectations it could support the bullions. For the day we except, Gold on MCX, to hover in the range of Rs.

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The commodity market is where products like oil, gold, metals or agricultural commodities are traded. Here, instead of finished products, traders deal in primary products or raw materials. Due to the higher risk of crashes or rallies, the market is also subject to a lot more speculation than the stock market.&nbsp; Hence, every investor or trader looking to foray into the commodity market must be prepared to face adverse circumstances. While the risks that come with trading commodities cannot be eliminated, there are certain ways to avoid or minimize losses. Here are some tips that can help you create a commodity trading strategy that minimizes risk and maximizes gains.

<ul>
	<li>Ways to Avoid Losses When Trading Commodities</li>
</ul>

1. Diversify

Keeping in mind your financial goals, your best bet would be to diversify your portfolio. It is vital that investors do not put all their eggs in one basket, as that could lead to significant losses without any financial buffer. Invest in a variety of assets to avoid this, and determine your risk-reward profile early on to ward off speculative traders.

2. Pay Attention To Market Movements

This is one of the most fundamental commodity trading tips. In order to make the most of your investments, you should constantly keep an eye on the market fluctuations. Not only will this help you pick the right strategies, but it will also steer you clear of common mistakes such as panicked decisions or following a herd mentality.&nbsp;

3. Maintain Stop Loss

Risks associated with market volatility can be minimized with the help of a stop-loss order. This order regulates the trade orders once the price has hit a certain amount. Without a stop-loss order, investors can sustain considerable losses which can force them out of the market. As soon as the market tilts in your favour, begin trailing your stop-loss point.&nbsp;

4. Go Slow And Steady

Traders and investors who lack the know-how about market movements and trading tend to slip up and book profits in a panic. Or they may keep using an ineffective strategy in fear of exacerbating their losses. Ideally, one should not close in on a winning trade too hastily. You should keep revising your stop-losses and try to maximize your gains. Remain patient and do not give in to panic as that will only affect your decision-making adversely.&nbsp;

Conclusion

In order to maximize your commodity trading profit, do thorough research and use your resources to keep track of market movements, stop-losses, strategy efficiency and so on. In-depth knowledge about the market and the world economy is essential to developing a trading strategy that will work in your favour. With the help of technical analysis, experience and a&nbsp; fundamental understanding of commodity trading, you can capitalize on more and more commodity trading opportunities. If you wish to pursue <a href="https://www.motilaloswal.com/invest-in-commodities-market">commodities trading</a>, ensure that you do so through a reputed platform.

Related Articles:&nbsp;<a href="https://www.motilaloswal.com/article-details/can-the-commodity-markets-provide-cues-for-equity-trading-/1446">Can the commodity markets provide cues for equity trading</a>&nbsp;|&nbsp;<a href="https://www.motilaloswal.com/article-details/beginners-guide-to-agri-commodity-trading/5124">Beginners Guide to Agri Commodity Trading</a>&nbsp;|&nbsp;<a href="https://www.motilaloswal.com/blog-details/5-successful-commodity-trading-strategies/1240">5 Successful Commodity Trading Strategies</a>&nbsp;|&nbsp;<a href="https://www.motilaloswal.com/blog-details/role-of-commodity-markets-in-india/1305">Role of Commodity Markets In India</a>&nbsp;

&nbsp;

Ways to avoid losses when trading commodities

Why <a href="https://www.motilaloswal.com/campaign/registrationoffers/Page242/SEM_Campaign18.html?utm_source=Google&amp;utm_medium=Search&amp;utm_campaign=B2C_Brand_Generic_Exact_OAO&amp;utm_adgroup=Motilal_Oswal_Demat_Account&amp;utm_term=motilal%20oswal%20open%20demat%20account&amp;utm_creative=535848403628&amp;utm_device=c&amp;matchtype=e&amp;loc_physical_ms=g&amp;adposition=&amp;gclid=Cj0KCQjwssyJBhDXARIsAK98ITR-bI8dUcCIJOeMMxeNyIB8SiaF970zB67KKQyEAZulVnxKtkpEDWEaAoMQEALw_wcB">Commodities Trading</a>?

The commodities market is important in every part of the world since countries are interdependent on one another for consumption and production.

Countries that are self-sufficient and create more items export them to other countries, and vice versa. This underlying necessity is what leads to burgeoning global trade and, as a result, the growth of the <a href="https://www.motilaloswal.com/invest-in-commodities-market">commodities trading</a> market.

What are the most important commodities in terms of trade?

<ul>
	<li>Globalization has made the world a smaller place to live in, and connection via sea routes, air routes, and other kinds of transportation has led to burgeoning trade between countries on opposite sides of the globe.</li>
</ul>

<ul>
	<li>For example, OPEC, Russia, and the United States of America account for more than half of world crude output, and <a href="https://www.motilaloswal.com/blog-details/Where-are-crude-oil-prices-headed-globally/1225">oil-importing</a> countries such as China and India are significantly reliant on these countries for their energy needs.</li>
</ul>

<ul>
	<li>More than 40% of worldwide soybean output is produced by the United States, Brazil, and Argentina, and these countries export a large amount of soybean to various regions of the world, resulting in a trading web.</li>
</ul>

<ul>
	<li>China and India are two of the world&#39;s largest gold users, and their reliance on imports of the yellow metal stems from this requirement. Furthermore, China is a major consumer of metals used in construction, such as steel, copper, lead, zinc, and nickel.</li>
</ul>

How do these transactions take place?

Because countries are interdependent, they devise a system to ensure that goods move smoothly and easily. These are trade agreements in which two or more countries agree on the parameters of their trade. They are in charge of determining the tariffs and levies that countries levy on imports and exports. All trade agreements have an impact on global trade.

As a result, trade agreements are divided into two categories: multilateral agreements and bilateral agreements.

<ul>
	<li>Multilateral Agreements - These agreements establish trade norms for multiple countries. Multilateral trade agreements, such as the World Trade Organization (WTO), the European Union (EU), and the North American Free Trade Agreement (NAFTA), shape international trade unions (North American Free Trade Agreement).</li>
</ul>

<ul>
	<li>Bilateral Agreements - These agreements establish trading norms between two countries.</li>
</ul>

Trade between China and the United States &ndash; Influences global attitude

<ul>
	<li>The current topic of global trade is China and the United States, who have been at odds for the past 17 months while negotiating a trade pact. China&#39;s overseas commerce has increased from $20 billion in the 1970s to almost $475 billion as of 2001, when it joined the World Trade Organization. It has expanded tenfold since then, to $4.5 trillion in 2018. Foreign trade accounts for around 35% of the country&#39;s GDP.</li>
</ul>

<ul>
	<li>China has a $300 billion annual trade surplus with the United States. In terms of bilateral trade, the US buys roughly $600 billion from China, with a record $378 billion bilateral trade deficit in 2018.</li>
</ul>

<ul>
	<li>While talks are ongoing, there is no guarantee that the US and China would reach a deal on trade concerns. In the current situation, China is the target of all trade and tariff wars throughout the world. As a result, China&#39;s participation in the commodities market is critical for global commerce and economic growth.</li>
</ul>

Related Articles:&nbsp;<a href="https://www.motilaloswal.com/article-details/can-the-commodity-markets-provide-cues-for-equity-trading-/1446">Can the commodity markets provide cues for equity trading</a>&nbsp;|&nbsp;<a href="https://www.motilaloswal.com/article-details/beginners-guide-to-agri-commodity-trading/5124">Beginners Guide to Agri Commodity Trading</a>&nbsp;|&nbsp;<a href="https://www.motilaloswal.com/blog-details/5-successful-commodity-trading-strategies/1240">5 Successful Commodity Trading Strategies</a>&nbsp;|&nbsp;<a href="https://www.motilaloswal.com/blog-details/role-of-commodity-markets-in-india/1305">Role of Commodity Markets In India</a>&nbsp;

Understand How Commodities Trading in India and Global Trade work

Commodities are one of the more lucrative asset classes in the market right now. They not only help you hedge your risk, but are also good for generating profits from their short-term price movements. Over the years, commodity trading has caught on quite nicely in India, with an increasing number of individuals participating in the process.&nbsp;

And since the commodity market in India opens at around 9 AM and goes on till 11.30 PM, it is a very good contender for <a href="https://www.motilaloswal.com/blog-details/best-intraday-trading-tips-and-strategy/1866">intraday trading</a>. If you&rsquo;re wondering how to trade intraday in the commodity market, then this article is for you. Let&rsquo;s start with some things that you should consider while taking part in commodity intraday trading.&nbsp;&nbsp;&nbsp;

<ul>
	<li>How to do intraday trading in the commodity market?&nbsp;</li>
</ul>

Here are a few pointers that you should always keep in mind when partaking in intraday commodity trading.&nbsp;

1. Keep your focus on a few commodities&nbsp;

When trying to partake in commodity intraday trading, it is important to restrict your focus down to just a few commodities. Since each commodity and the factors that influence them are unique, trying your hand at multiple commodities can get you into trouble. Therefore, before you go out for intraday commodity training, pick just a couple of commodities and stick with them throughout.&nbsp;&nbsp;

2. Pay attention to global news

Now, once you&rsquo;ve picked out the commodities that you would like to trade in, the next step is to read up on the news, both domestic and global, that can influence the price of these commodities. For instance, if you&rsquo;re planning to start commodity intraday trading with <a href="https://www.motilaloswal.com/blog-details/how-to-make-money-trading-crude-oil-in-5-easy-steps/20195">crude oil</a>, you should ideally keep yourself abreast of all the developments that happen in middle-eastern and OPEC countries.&nbsp;

3. Be aware of correlation between asset classes

There are many commodities that enjoy both positive and negative correlation with other assets. For instance, gold and the U.S. Dollar has a negative correlation. What this essentially means is that when the U.S. Dollar strengthens, gold weakens and vice versa. Getting into commodity trading, armed with this knowledge can help you go a long way.&nbsp;&nbsp;

4. Understand monsoon data

The price of agricultural commodities like paddy, maize, chana, and others are heavily dependent on the monsoons. A less than ideal monsoon season could spell a bad harvest, which in turn will reduce supply and lead to an increase in the price. The converse is also true. So, before you start intraday commodity trading, it is advisable to be aware of the monsoon data and outlook.&nbsp;

Conclusion

Now that you&rsquo;re aware of how to trade intraday with commodities, why don&rsquo;t you go ahead and give it a shot right away? That said, keep in mind that you would need a trading and demat account to participate in <a href="https://www.motilaloswal.com/invest-in-commodities-market">commodity trading</a>. If you don&rsquo;t have one already, get in touch with Motilal Oswal. You can open one for free within just a few minutes.&nbsp;

Related Articles:&nbsp;<a href="https://www.motilaloswal.com/article-details/can-the-commodity-markets-provide-cues-for-equity-trading-/1446">Can the commodity markets provide cues for equity trading</a>&nbsp;|&nbsp;<a href="https://www.motilaloswal.com/article-details/beginners-guide-to-agri-commodity-trading/5124">Beginners Guide to Agri Commodity Trading</a>&nbsp;|&nbsp;<a href="https://www.motilaloswal.com/blog-details/5-successful-commodity-trading-strategies/1240">5 Successful Commodity Trading Strategies</a>&nbsp;|&nbsp;<a href="https://www.motilaloswal.com/blog-details/role-of-commodity-markets-in-india/1305">Role of Commodity Markets In India</a>&nbsp;

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