What are the requirements for trading in the Indian commodity Exchange (MCX)?

(MCX) Multi Commodity Exchange of India Ltd is the modern electronic commodity futures exchange. MCX was established in Mumbai in 2003 and has become the world’s sixth-largest commodity trading exchange.

In the commodity market, natural products or commodities are exchanged. The raw commodities are sold and bought in regulated contracts. Commodity trading is also a form of trading similar to stock trading.

Trading in commodities takes place in Exchanges either to own the product or make a profit using variable prices by buyers and sellers in the market.

How to Start Trading in Commodities? 

1. Opening A Trading Account.

A trading account can be opened with any broker in the industry. The fundamental requirements for opening a trading account are:

• Bank account

• PAN card

• Address proof

• A/c opening charges levied by the broker

2. Choosing a Stock Broker,

 There are many registered brokers available with MCX; you have to Choose “Enrich Money”.Hence their status and charges levied by them have to be checked.. The charges may consist of brokerage charges and a transaction charge.

Minimum Amount Investment: 

There is no fixed amount for investing in commodities.

It is mainly concerned with the type of commodity in which investment is made.

However, Rs.10 000 will be a good amount to start with.

Mode of Money Transfer for Trading: 

Money transfers can be done through net banking, cheques, and demand drafts.

What are the Basic Needs for Online Trading?

 Some of the basic requirements for trading include

• Internet connection

• Trading application installed on the machine or device

• Although brokers share daily tips; self-research is more important

• Receive tips from standard sources before commencing your trade

• Information-related articles and spot prices on commodities which are carried by financial newspapers are beneficial

• Websites related to trading offer tips for the commodity market

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H2: What is the Best Time Frame for Trading? 

The operating hours of MCX are from 10 am to 11:30 pm.

The working hours of the MCX exchange are regulated by Forward Markets Commission (FMC).

On the other hand, the registration of brokers with FMC is not mandatory.

FMC’s foremost duty is to deal with the exchange administration and examine when there is suspicion of any foul play.