Commodity trading is easy and completely online.
You often hear about trading in the stock market. Similar trading is done in the commodity market. Commodity Marks are global platforms where traders buy and sell primary products instead of manufactured goods or services. Commodity markets mainly deal with derivatives instruments such as futures and options, which are the agreement executed at a predetermined price on the future date. Like stock markets, commodity prices fluctuate based on global demand and dynamics of supply, and their current rates are easily available on commodity exchanges. If you are also interested in trading in this market, then you can start trading by opening your account.
Commodity trading account opening process
Opening a commodity trading account with a reputed broker is the first step to become a commodity trader. According to Groww, there are some procedures for this, which has to pass:
Start it completely by filling the MCX account opening form provided by the broker. The following document will be required for verification of evidence of identity and evidence of address. The executive member-client agreement prepared on non-judicial paper underlines the services, fees and responsibilities of the broker. Ensure that the broker legally approves it and you pay the implemented stamp duty and registration fee. This may include professional account details, ITR V, Form 16, bank details (last six months) or net worth or demat holding certificate. Link your demat account to enable uninterrupted credit or debit of derivative instruments. Deposit checks for margin deposits, which vary according to the broker. Confirm the required amount in advance.
Learn what you get the benefits of this account
Commodity trading is easy and completely online. You can trade any internet-capable device, such as a smartphone or laptop. The high liquidity of the commodity market ensures that assets can be easily purchased or sold, as needed. Commodity is highly leveraged, allowing you to trade with minimal capital and even increase potential benefits from small price movements. Commodity has a low correlation with equity stock, making them an effective way to diversify your investment portfolio. Commodity often performs well during high inflation, as their prices usually grow with inflation pressure. However, it is important to understand that commodities are more unstable than other investments. In India, the commodity market is regulated and transparent, which ensures a safe trading environment. Commodity prices fluctuate due to factors such as supply and demand, inflation and economic health. Global infrastructure projects have recently increased demand, which have had a positive impact on commodity prices and related industries. Traders have to deposit only 5–10% of the contract value as margin, which helps them to achieve a larger position with relatively low capital compared to other asset classes.
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