A Complete Trading Guide In Commodity Trading

[MahindraI]

thanks for the information about ncdex but i think a success investment can only achieve after we did some research

 

[Rinchen Bhutia]

ur thread 4 begginners is some what interesting. Would u mind explaining how 2 make entries in those buy and sale boxes?

 

[mihirgadre]

Hi, I am interested in commodity trading. I already have a Demat with Motilal Oswal for stocks. Can I use the same for commodity trading?

 

[rohan82]

no you have to open a seprate a/c for commodity

 

[ashu.wifi]

Iam an newbie and i dont understand this step 5

reason is i used to understand that if i buy a thing suppose potato with price of 1 rs per kg with lot size of 100kg if potato price goes 2 rs per kg then i"ll get 100 rs of gain isnt?ofcource u wil have to pay to yours sub-broker

Pls anybody explain my confusion?

 

[rohan82]

Thanks ncdx for such a good information

 

[atharsh]

Dear All,

Can you please clarify what is that meaning "VARIANT PER TICK" in commodity trading?

Please help me.

ATHARSH

 

[Rajwant6109]

Hi Traders....

I am looking that lots of people are interested in Commodity Trading looking @ the returns it provide in short time.

This thread is for Beginers who dosent have any idead about commogity trading and also dont know how to trade in futures Trading!!!

Step1> U need to open an account with a broker who is Registered with MCX OR NCDEX.

Step2> After doing that, u need to select one or more than one commodities that u r interested in trading..
like, gold, silver, crude, guar, chana etc..

Step3> Now.... For a given commodity,, u have 3 to 6 contracts open that are identified by month and expires on a fixed date on that month. eg. gold sept,oct etc...

Step4> All u need to do is place an order either to buy or sell(u can do both without owing physical quantity).
Every commodity has a minimum trading size.
eg. gold has 100 gms(mcx) to 1 kg(ncdx), silver 30 kg, guar,chana 10 tons(1000 kg). There for u can buy/sell minimun one or multiple of tick size..

Step 5> Now the payment Funda..
Futures trading is purely margin based trading similar in stock market.. Every commodity has a specified margin value by the exchange that is to b paid by you for trading.
The margin varies from 5% to 20%. Exchanges do change the margin periodically when market goes too much speculative...

Step6> Example:
lets say..I want to buy ncdx Chana sept contract currently trading @ 1920 Rs per quintal. I placed buy 1 lot(minimum) that is 10 tons. so the total amount calculated is 1 lack 90 thousands for 1 lot. So u hav to pay your broker only 6% of it. that is roughly 12000 Rs per lot..

If u dont sell that day itself and hold it, than your profit and loss will b calculated on "CLOSING MARKET PRICE".
so if the contract closes say 1910. that is -10.. so u have made a net loss of 1000 Rs. Simply saying every 1 rs gain or loss counts to 100 Rs profit/loss. (buying an selling one lot will cost u roughly 170 Rs brokerage)

Step 7>profit and losses are autometically debit/credited in your account on daily basis.. If your margin amount has fallen short.. ur broker will rang u up for a cheque.

step 8> Dont forget to square off your posotions before the contract expires. Otherwise u may need to give/take physical delevery og the good or face a penealty by the exchange..

I think i have explained a lot of things.. If any reader still have any query.. can ask on this thread...
views welcome...
u can visit my thread in commoditis--->grains for few tips

Readers dont forget to RATE this Thread..

Dear Member ,

First of All I would Like Say Thanks to You for Posting Such Good knowledge.Even though I am a New Traders in Commodity Market which regards I want to ask some questions from You.

1. What is Intraday, Future and Option Trading ?
2. What is the meaning of Target Price ?
3. What factors can affect up and down Price of Gold,Silver,Copper,Zinc and Kapas ?

Regards,
Rajwant

 

[joysuryas]

Hi All,

Can any body tell me how to trade commodities in international market from India?

Thanks

Joy

 

[Arpit1648]

Hello Everyone.