Commodity derivativies comparise of raw-materials and product that can be traded on special commodity exchange across the country , commodities expands your inveting horizon from inveting in a metal company to travelling in metal itself.
Trading in commodity derivativies provide unique market opportunities for the wider section of participats like : inveters, hedgers, arbitagers, traders, manufactures, phanters , exporters and importers, while trading commodities trough a exchange, there is no transportation charges, no insurance costs, no storage charges and complete security when you traded through an exchange, you can trade in commodity at normal cost and carry, the investment I paper from as any as you want. The fundamental for commodities is quite simple : price is function of demand and supply.
All investors have to submit their proof of identity and proof of address along with the prescribed account opening form.
.::. 5 Reasons why trading in commodities can Benefit you
It’s only demand and supply. You don’t have to truble yourself with Balance sheets , p/l statement , ED/TDA or other analysis.
Market Direction can be easily predicted. Seasonality patterns quite often provide client in both short and the long term player.
Supports are known, only resistance matters ! The minimum support price acts as a statutory support for many commodities.
No Dollar/rupee premium /discount , No hedging on NYMEX. Indian commodity derivatives hedge both forex and commodity specific risk at a single cost.
No risk Factors commodity trading isn’t exposed to problems such as insinder trading and has no company specific risk.
