Guide to Commodity Trading

Where Do We Need To Go To Trade-In Commodity Futures?

There are three choices. All three options mentioned below have electronic trading and settlement systems and a national presence.

1) The National Commodity and Derivative Exchange. 

2) The Multi Commodity Exchange of India Ltd. 

3) The National Multi Commodity Exchange of India Ltd. 

 

How Do I Choose My Broker?

 

Many established equity brokers have requested membership with NCDEX and MCX.

Commodity Futures Services Are Offered By: 

1. Enrich Financial solution Pvt Ltd 

you can also choose any broker from the members of the mentioned exchanges

What Is The Minimum Investment Needed?

The minimum amount can start from Rs 5,000. 

We require money for margins payable upfront to exchanges through brokers.

The margins range from 5-10 per cent of the value of the commodity contract.

We can start trading at Rs 5,000 with Enrich Financial solution. 

Different brokers have different packages for clients.

Trading in bullion ( gold & silver ) 

The minimum amount required is Rs 650 and Rs 950 for the current price of approximately Rs 9500 for gold for one trading unit (10 gm) and about Rs 6,500 for silver (one kg).

Agricultural commodities' prices and trading lots vary from exchange to exchange (in kg, quintals, or tonnes). 

The minimum funds required to begin will be approximately Rs 5,000.

Do I Have To Give Delivery Or Settle In Cash?

Exchanges have both options. The cash and delivery mechanisms are available. We can choose the options. 

Cash Settlement Of Contract:

When placing the order, we need to specify that we don't propose to deliver the item.

If we plan to take or make delivery, we need to have the required warehouse receipts.

The option to settle in cash or through delivery can be changed as many times as we want till the last day of the expiry of the contract.