Commodity market is a platform there many assets are buying by holders and sellers by brokers. Everyone can make trading in that platform. Its have the very simple process of trading. You can earn money simply if you have good adviser and enough money to invest and can make hold for long time if required. In the commodity market seller/broker and buyer/holder make a contract deal for a proper time period.
As like normal human thinking for dealing same strategies are applied here. Every commodity market investors want to buy at lowest price and sell at highest price for to maximum profit. For example suppose that you want to buy gold because you believe that the price of gold will rise. You could then buy gold and store them,wait for them to go up in price, and then sell them at a profit.But if your analyzing wrong and gold price go down then you will be in loss.
Commodity market trading have options to trade in this market as like Agricultural assets, Energy assets, Metal assets. In the Metal assets two types of metals are includes Precious metals (Gold, Platinum, Silver and Palladium) and industrial metals (Copper, Lead, Zinc, Tin, Aluminum, Nickel, Aluminum alloy, Steel). The Indian commodity market achieved first rank in Silver, the second rank in Gold, Natural Gas and Copper and achieved third rank in crude oil futures in all over the world.
A commodities exchange is an exchange where various commodities and derivatives products are traded. Most commodity markets across the world trade in agricultural products and other raw materials. Commodity exchange usually work in future based contract. All commodity investors make sell and buy contract to make profit deal.
In India 6 commodity exchange established-
1. Ace Derivatives and Commodity Exchange (ACE) for Agricultural
2. India Commodity Exchange Limit (ICEX) for Energy, Precious metal, Base metal, Agricultural products
3. Multi Commodity Exchange (MCX) for Energy, Precious metal, Base metal, Agricultural products
4. National Multi Commodity Exchange of india limited (NMCE) for Precious metal, metal, Agricultural
5. Bhatinda Om & Oil Exchange Ltd. (BOOE) for Agricultural products
6. National Commodity and Derivatives Exchange (NCDEX) for all
Metal Commodity
Metals are used in all areas of industry and construction, from the building of houses and factories to the fabrication of machines, electronics and consumer goods. Some metals also have value either as components of jewellery. Metals are divided in two parts for commodity trading.
1.Precious metals:- Gold is best metal which are traded in commodity market. Gold is mostly used for jewelery and its have increasing demand for industrial purpose. Indian exchange MCX had achieved second rank in around the world. Another precious metal traded on the world commodity market is silver. The Indian commodity market achieved first rank in Silver. It has the same uses of gold. Platinum and Palladium both are precious metal for industrial uses.
2.Industrial Metals:- There are many metals used in industrial processes that are traded as commodities. Some like copper, lead and tin are using from long time. Other industrial metal commodities, like zinc, aluminum, steel, nickel and molybdenum, are newer but key to many modern industrial processes.
How to invest in Metal commodity market? that’s process explain in these 10 steps for beginners-
Step 1: Locate a brokerage house with a reputation for service.
Step 2: Fill a demat account opening form with a registered brokerage house and a member with the national commodity exchanges. You could require PAN card, address proof and passport size photos.
Step 3: Be clear of the rules and regulations especially transaction costs.
Step 4: Choose the right brokerage plan that optimizes your costs, brokerage fees ranging from 0.03% to 0.08% on contract value.
Step 5: Be clear of the service deliverables from your broker.
Step 6: Insist on regular reports and special knowledge/training opportunities.
Step 7: Set aside funds for commodity investing, but remember not at the cost of other traditional investing avenues.
Step 8: Focus on a few commodities, gather requisite knowledge and pay up the initial amount for margin money, account opening charges and annual maintenance charges.
As like normal human thinking for dealing same strategies are applied here. Every commodity market investors want to buy at lowest price and sell at highest price for to maximum profit. For example suppose that you want to buy gold because you believe that the price of gold will rise. You could then buy gold and store them,wait for them to go up in price, and then sell them at a profit.But if your analyzing wrong and gold price go down then you will be in loss.
Commodity market trading have options to trade in this market as like Agricultural assets, Energy assets, Metal assets. In the Metal assets two types of metals are includes Precious metals (Gold, Platinum, Silver and Palladium) and industrial metals (Copper, Lead, Zinc, Tin, Aluminum, Nickel, Aluminum alloy, Steel). The Indian commodity market achieved first rank in Silver, the second rank in Gold, Natural Gas and Copper and achieved third rank in crude oil futures in all over the world.
A commodities exchange is an exchange where various commodities and derivatives products are traded. Most commodity markets across the world trade in agricultural products and other raw materials. Commodity exchange usually work in future based contract. All commodity investors make sell and buy contract to make profit deal.
In India 6 commodity exchange established-
1. Ace Derivatives and Commodity Exchange (ACE) for Agricultural
2. India Commodity Exchange Limit (ICEX) for Energy, Precious metal, Base metal, Agricultural products
3. Multi Commodity Exchange (MCX) for Energy, Precious metal, Base metal, Agricultural products
4. National Multi Commodity Exchange of india limited (NMCE) for Precious metal, metal, Agricultural
5. Bhatinda Om & Oil Exchange Ltd. (BOOE) for Agricultural products
6. National Commodity and Derivatives Exchange (NCDEX) for all
Metal Commodity
Metals are used in all areas of industry and construction, from the building of houses and factories to the fabrication of machines, electronics and consumer goods. Some metals also have value either as components of jewellery. Metals are divided in two parts for commodity trading.
1.Precious metals:- Gold is best metal which are traded in commodity market. Gold is mostly used for jewelery and its have increasing demand for industrial purpose. Indian exchange MCX had achieved second rank in around the world. Another precious metal traded on the world commodity market is silver. The Indian commodity market achieved first rank in Silver. It has the same uses of gold. Platinum and Palladium both are precious metal for industrial uses.
2.Industrial Metals:- There are many metals used in industrial processes that are traded as commodities. Some like copper, lead and tin are using from long time. Other industrial metal commodities, like zinc, aluminum, steel, nickel and molybdenum, are newer but key to many modern industrial processes.
How to invest in Metal commodity market? that’s process explain in these 10 steps for beginners-
Step 1: Locate a brokerage house with a reputation for service.
Step 2: Fill a demat account opening form with a registered brokerage house and a member with the national commodity exchanges. You could require PAN card, address proof and passport size photos.
Step 3: Be clear of the rules and regulations especially transaction costs.
Step 4: Choose the right brokerage plan that optimizes your costs, brokerage fees ranging from 0.03% to 0.08% on contract value.
Step 5: Be clear of the service deliverables from your broker.
Step 6: Insist on regular reports and special knowledge/training opportunities.
Step 7: Set aside funds for commodity investing, but remember not at the cost of other traditional investing avenues.
Step 8: Focus on a few commodities, gather requisite knowledge and pay up the initial amount for margin money, account opening charges and annual maintenance charges.
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