Some Investment tips about commodity trading, how do you buy and sell, how beneficial will it be for you

Invest in commodities to diversify your portfolio. Just like we buy and sell shares on BSE-NSE, commodities, spices, gold, etc. are traded on commodity exchanges MCX and NCDEX.

This is called commodity trading. This is slightly different from trading inequities. Commodity trading is mostly in the future market. Commodity trading requires investors to open separate Demat and trading accounts.

Just like we buy and sell shares on BSE-NSE, commodities, spices, gold, etc. are traded on commodity exchanges MCX and NCDEX. This is called commodity trading. This is slightly different from trading inequities.

Commodity trading is mostly in the future market. Commodity trading requires investors to open separate Demat and trading accounts.

There is a fundamental difference between commodity and stock market trading. 

You can buy shares once and sell them even after many years. 

But the commodity is traded for only two to three months. 

Therefore, it is necessary to follow a fixed period when buying or selling a deal.

It is like equity future trading. Future trading is a deal between two parties to buy, sell, which is exchanged at today's price at the future price. Commodity trading takes place with national-level online monitoring and surveillance mechanisms.

In MCX and NCDEX, commodity futures contracts are purchased on an exopod cycle basis for one, two, and three months. According to experts, one should also invest in commodities along with equity to diversify the portfolio.

However, retail and small investors should be cautious in investing. market. Volatility and little information can overwhelm money. Investors need to know the cycle and what factors affect the commodity market.

The commodity market in India is growing rapidly with an annual turnover of Rs 25 lakh crore. It is mainly a leveraged market. Small and medium investors can also do commodity trading through small margin money.

Commodities can be divided into four main categories:

Precious Metals:

Gold, Silver, Platinum.

Base metal

Copper, zinc, nickel, lead, tin, and aluminum.

Energy:

Crude Oil, Natural Gas, ATF, and Gasoline.

Spices

Black pepper, coriander, cardamom, and cumin, turmeric, and cayenne pepper. Others: Soya seeds, mentha oil, wheat, and gram.

Currently trading in 95 commodities

Time of Commodity Trading: Trading in 95 commodities is allowed in a country other than the stock market. The time of forwarding market commodity trading is different. Its regulator in the stock market (FMC) is.

The largest commodity trades from 9.15 am to 3.30 pm Monday to Friday. The major trading metal in the exchange MCX is in energy. At the same time, the trading of agriculture commodity is Monday to Friday 10 daily exchange volume of 17,000-20,000 crores.

It is from 5 o'clock in the morning, while in metal and energy. NCDEX arrived in December 2003. In this, trading in Agri trading takes place from 10 am to 11.30 pm. It is on Saturday. The daily exchange volume is 2000 to 3000 crores. All commodity trading takes place from 10 am to 2 pm.

Commodity Trading time different from the stock market

The time of commodity trading is different. Trading takes place in the stock market from 9.15 am to 3.30 pm Monday to Friday. At the same time, the agricultural commodity is traded from 10 am to 5 pm Monday to Friday, while in metal and energy.

Trading runs from 10 am to 11.30 pm. All commodity trading takes place from 10am to 2pm on Saturdays.