February 19, 2010
How Commodity Trading Works? How Do I Trade Online?
How commodity trading works[If possible please give me answer specific to india]? How do i trade online?
and whether only margin trading is possible in commodities or cash trading is also possible online?
You’re insane. Buy commodities as a diversifier and inflation hedge only, and as part of a larger diversifed portfolio. They should make up no more than 5-10% of your portfolio, depending on your personal risk tolerance. They are VERY volatile, so keep that in mind. The best way to do it is through a diversifed commodities fund, like the DWS Scudder Commodity Securities Fund.
Hope this helps!
–J.
try a search engine
Try NCDEX http://www.ncdex.com
The commodity trading is similar to trading of shares. In India there are two major commodity exchange MCX http://www.mcxindia.com & NCDEX http://www.ncdex.com
You can approach any local broker or visit the above mentioned websites for further details.
Commodity marketing is dealing in commodities/consumables. In Indian context, trading in rice/potato/cumin(jeera)etc is all commodity trading.I dont have much idea on this but yes if u can wait for some time till Reliance starts its R- Trade (most likely 6-6-2006)u will be able to go for online trading for commodities also.Also check out http://www.futures.tradingcharts.com
yes, you can trade in commodities online in india. you need to open an account with an online brokerage first of all and you need to give a few documents like PAN number, address proof, a cancelled cheque and entry fee. try sharekhan.com. they have this facility. you can trade on margin as well as cash