Category: Commodities

Commodity Arbitrage – Types & Strategies in India

Commodity arbitrage is like playing a game of “buy low, sell high” — but across two markets at the same time. Usually, traders wait for a favorable price movement to exit their positions but this is not the case with commodity arbitrage. Traders spot price mismatches across different markets, strike fast, and turn price gaps into quick profit.

In this blog, we will explain the concept of commodity arbitrage in detail along with its types, advantages, risks, etc.

What is Commodity Arbitrage?

Commodity arbitrage is a method by which traders make profits by taking advantage of the difference in commodity prices in different markets. For example, if gold is available at a lower price in one place and at a higher price in other simultaneously, the trader buys gold from the market with lower price and sells it in the market with higher price. In this way, a good profit can be made without taking much risk.

Key features of Commodity Arbitrage

Direct profit: When you get the goods at a lower price and sell them at a higher price, you can realize a quick profit.
Increases Market Efficiency: Arbitrage reduces the price gap between different markets, making the market more transparent.
Risk identification: A correct understanding of this helps traders avoid purchasing in overpriced markets and avoid potential losses.

Types of Commodity Arbitrage

Different types of commodity arbitrage are listed below:

1. Spatial Arbitrage

Spatial arbitrage is a situation when the price of the same commodity is in different markets at different geographical locations. In this situation, traders buy the commodity from a place where the price is low and sell it where the price is high. In a country like India, where there are regional differences in taxes, transportation costs and demand-supply, this strategy can be particularly effective.

2. Temporal Arbitrage

Temporal arbitrage is a strategy to take advantage of changes in prices based on time. In this, traders buy a commodity when its price is low and sell it in the future, when the price rises.

For example, if the June contract of crude oil is cheap and the July one is expensive, then an experienced trader can make a profit from this price difference.

3. Inter-Exchange Arbitrage

Sometimes the price of the same commodity is different on two different exchanges such as MCX and NCDEX. By taking advantage of this price disparity, traders can make a profit by buying at a lower price on one exchange and selling at a higher price on the other. This strategy is usually more useful in agri commodities due to lower liquidity.

4. Cash and Carry Arbitrage

This strategy takes advantage of the difference in prices of the spot market and the futures market. In this, the trader buys the commodity in the spot market and sells (shorts) the same commodity in the futures market. It is effective only when the futures price is higher than the spot price. Make sure the difference between the spot and futures prices cover the carry cost (such as storage, financing).

5. Statistical Arbitrage

This is an advanced strategy in which traders take advantage of price imbalances using statistical and mathematical models. It often involves analysing the relationship between co-related commodities (such as copper and zinc) and trading in case of any divergence to make a profit. This strategy is more popular among quant traders using automated systems.

Read Also: Tax on Commodity Trading in India

Commodity Arbitrage Strategies in India

Here is a simple and accurate description of the major commodity arbitrage strategies used in India:

Calendar Spread Arbitrage : This strategy seeks to profit from the price difference between two futures contracts of the same commodity with different expiry dates. Traders take a long position in one contract and a short position in the other.

Inter-Commodity Arbitrage : This is applicable when price divergence is observed between two related commodities, such as crude oil and natural gas, or gold and silver, based on a historical or statistical relationship. If this relationship breaks temporarily, traders can profit by taking long positions in one commodity and short in the other.

Regulatory Arbitrage : In India, regulatory arbitrage opportunities arise due to differences in regulations, tax structures, and delivery policies of different states or exchanges. Traders analyze such regulations and buy and sell in different markets so that the overall regulatory burden or cost is less. However, this strategy is adopted only by experienced traders and dealers.

Algorithmic Trading : This is a modern technical strategy that uses programmed software and algorithms to spot arbitrage opportunities in the market in milliseconds. In this, traders automate their trades by using quantitative models, volume data, and price movements in real-time. This strategy can be extremely profitable in active commodity markets or exchanges such as MCX, provided the system’s speed is fast and transparent data feed.

All these strategies are designed keeping in mind the structure and trading behavior of the participants of the Indian commodity market.

Commodity Arbitrage Example

Suppose an experienced trader noticed a slight difference in the spot price of gold and futures price of Gold on MCX. This small difference can also give good profits with the right strategy and timing.

Gold Price in Spot Market: ₹97,000 per 10 grams

Gold Futures Price in MCX: ₹97,800 per 10 grams

Price difference: ₹800 per 10 grams i.e. ₹80,000 per kilogram

Trading process

Spot the opportunity: The trader caught this difference in price and immediately prepared a trading plan.
Purchase: He bought 1 kg of gold in the spot market at ₹97,000 per 10 grams for ₹97,00,000.
Logistics and other expenses: Suppose the total cost including transport, insurance, GST etc. is about ₹10,000.
Sale: He also sold one Gold Futures contract trading at ₹97,800 per 10 grams. The underlying asset for Gold Futures contract is 1 kg of gold. The trading position is held onto until the contract expires.

Profit calculation at Futures Contract Expiry:

Sale price = ₹97,80,000

At contract expiry, the trader can deliver 1 kg of gold in exchange for ₹97,80,000.

Total cost = ₹97,00,000 + ₹10,000 = ₹97,10,000

This was the initial outlay.

Net profit = ₹97,80,000 – ₹97,10,000 = ₹70,000

This is a simple yet effective commodity arbitrage strategy (cash and carry), where you can profit without taking too much risk. If you have real-time market data and knowledge about arbitrage strategies, such opportunities can yield good profits.

Advantages of Commodity Arbitrage Trading

The advantages of commodity arbitrage trading are:

Low Risk: This trading approach is relatively low risk, which can benefit both new and experienced traders.
Quick Profits: Using commodity arbitrage, quick profits can be made from the difference in market prices of the same commodity by buying in one market and selling in another market instantly.
Consistent Returns: With a little planning and data analysis, consistent good returns are possible.

Risks and Challenges in Commodity Arbitrage

Commodity arbitrage is often considered a safe trading strategy, but there are some risks and challenges that need to be taken care of. If these are ignored, losses can occur.

Market fluctuations : Commodity prices can change very quickly. From the time you spot a trading opportunity to the time you complete the trade, the prices can change. The profits due to time lag can either be reduced or completely eliminated.

Additional expenses : Transaction costs such as brokerage, taxes, transportation and other fees can reduce your profits to a great extent. Sometimes these expenses become so high that arbitrage is no longer profitable.

Restrictions of rules : SEBI and other organizations keep a strict watch on commodity trading on exchanges. Improper knowledge about margin requirements and other trading regulations can cause losses.

Conclusion

Commodity arbitrage is a trading technique that focuses on earning profits by taking advantage of price disparities of the same commodity across different markets or periods of time. There are several types prevalent in India such as Spatial Arbitrage, Inter-Exchange Arbitrage, Temporal Arbitrage, and Cash & Carry. Each arbitrage strategy comes with its own risks and rewards, and their correct evaluation is essential for successful trading.

An effective arbitrage strategy requires deep market understanding, data-driven decision-making, and accurate execution. Also, transaction costs, regulatory guidelines, and market volatility must be taken into account. It is advised to consult a financial advisor before trading.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	What is Commodity Market in India?
2	Best Online Commodity Trading Platforms in India: Top 10 Picks for Traders
3	Stock Market vs Commodity Market
4	Understanding Commodity Market Analysis
5	Top Major Commodity Exchanges in India

FAQs

What is commodity arbitrage?
It is a trading strategy in which profits are made by taking advantage of the difference in prices of the same commodity at different markets or times.
Is commodity arbitrage legal in India?
Yes, it is a legitimate trading strategy as long as all the regulatory rules are followed.
Which exchanges allow commodity arbitrage in India?
Traders can use the MCX (Multi Commodity Exchange) and the spot market to execute commodity arbitrage strategies.
What are the major types of commodity arbitrage?
The main types are: spatial, cash and carry, temporal, inter-exchange, and statistical arbitrage.
How much profit can one make through arbitrage trading?
It completely depends on the price difference, transaction cost and timing. Usually the profit margins are limited due to high liquidity.

May 23, 2025

Top Major Commodity Exchanges in India

Commodity exchanges in India allow people to trade commodities such as gold, oil, and agricultural products conveniently and in an organized manner. These exchanges ensure transparency in commodity prices and promote fair trade practices.

Among the major commodity exchanges of India, the Multi Commodity Exchange (MCX) is the largest one as it deals with the majority of trades in the commodity segment. But did you know there are other exchanges that facilitate trading in commodities as well? In this blog, we will discuss the major commodity exchanges in India and the factors to consider before trading in commodities.

What is a Commodity Exchange?

A commodity exchange is a marketplace where standardized derivative contracts of various commodities are traded. These include oil, gold, and agricultural products, etc. These derivative contracts enable manufacturers, farmers, etc., to hedge their exposure, and speculative traders to take advantage of future price movements.

Physical delivery of the commodity occurs only after the contract has expired, and trading primarily involves commodity derivative contracts. The market value of global commodities is enormous and is projected to grow at a CAGR of 2.70%, reaching $163.21 billion by 2030.

Traders trade futures and options contracts on major commodity exchanges instead of physical commodities. Futures contracts are legally binding agreements between two parties to buy and sell the underlying at a predetermined date and price. Futures contracts for crude oil, natural gas, gold, etc., account for most transactions.

Major Commodity Exchanges in India

Some of the most common major commodity exchanges in India include:

1. Multi Commodity Exchange of India (MCX)

MCX is one of India’s largest commodity exchanges with a huge trading volume. It came into existence in 2003. Metals such as gold, silver, and copper can be traded as futures and options contracts. They can also be used to trade crude oil and natural gas, as well as agricultural commodities like cotton.

Its high-tech trading platform enables price discovery with full transparency, enabling effective risk management. Traders can access the MCX platform through a huge network of brokers associated with it.

2. National Commodity and Derivatives Exchange (NCDEX)

NCDEX was established in 2003, and it primarily deals with agricultural commodities. It enables farmers and traders to hedge items such as wheat, barley, spices, and oilseeds.

This commodity exchange enables stakeholders such as farmers and FMCG companies to hedge against price variations and obtain a stable income or control the costs of raw materials. Moreover, NCDEX also offers traders an opportunity to speculate on the price movement of commodities to generate profits.

3. National Multi Commodity Exchange (NMCE)

NMCE began as the first online commodities exchange in India in 2002. It offered trading in coffee, rubber, oil seeds, and spices through futures contracts. It merged with ICEX in 2017, and as a result, it became the third-largest commodities exchange in India. The merger enhanced market liquidity, ensuring seamless and transparent transactions.

Did you know?

Some of the other commodity exchanges in India in the past were:

Indian Commodity Exchange Ltd. (ICEX): In 2024, SEBI revoked ICEX recognition, allowing it to exit the commodity markets.
ACE Derivatives and Commodity Exchange Ltd.: In 2019, SEBI allowed ACE Derivatives and Commodity Exchange to shut operations after the exchange failed to come up with a strategy to increase trading volumes. This decision was made after there was nearly a two-year trading suspension on the exchange.
Universal Commodity Exchange (UCX): The exchange came into existence in 2012, but due to low trading volumes, SEBI allowed it to shut operations in 2014.

Different Types of Commodity Trading

Commodity trading can be done using futures, options, spot, spread, and derivative trading. Usually, such trades are conducted through commodity trading platforms. An overview of the different types of commodity trading are:

Futures Trading: Futures trading features futures contracts of a commodity. The buyer of the futures contract agrees to purchase the underlying commodity at a specific date for a pre-determined price. Futures contracts are used by traders to generate profits by predicting price changes and by farmers and manufacturers to manage risks associated with changing commodities prices.

Spot Trading: Spot trading involves purchasing or selling physical commodities immediately. Here, delivery takes place immediately after the purchase; without having to wait for future delivery dates, traders can swiftly close deals. This way, they can obtain commodities at a faster pace.

Options Trading: Options trading involves options contracts, i.e. calls and puts. An option grants the holder the right but not an obligation to buy or sell the underlying commodity at a predetermined price on a specific date. These contracts allow traders to manage risks and profit from market changes.

Other Derivative Contracts: Other derivative contracts include financial instruments such as swaps and forward contracts. These derivative instruments are different from other derivative instruments as these can be customized according to the specific requirements of the parties involved. The payoff structure can be modified after mutual agreement between the parties.

Things To Consider Before Trading in Commodities

An individual should consider the below-mentioned factors before trading in commodities:

Regulation: Ensure that the commodity exchange you use is SEBI-regulated for a secure and transparent trading experience. This safeguards your assets and allows you to trade in a well-regulated environment with strict regulations in place.

Broker Selection: Choose a reliable broker with low brokerage fees, excellent customer service, and a strong track record in commodity trading. A trustworthy broker streamlines the trading process, provides insightful analysis, and assists you in making wise judgments.

Liquidity: When trading, choose commodities with high liquidity to facilitate quick buying and selling. Good liquidity facilitates quick transactions and lowers price impact, enabling you to initiate or exit trades with minimal delays or losses.

Costs: Before you begin trading, be aware of the brokerage costs. Being aware of these costs upfront helps in efficient budgeting, profit maximization, and the avoidance of unforeseen charges that may affect your total returns.

Read Also: Pros and Cons of Commodity Trading

Conclusion

Major commodity exchanges, like MCX and NCDEX, support trading in a wide range of commodities. These primarily include metals, energy, agriculture, etc. These commodity trading platforms allow farmers, manufacturers, and FMCG companies to protect themselves from price fluctuations and contribute to India’s economic growth. These commodity exchanges have high trading volumes along with strict risk management systems in place, ensuring market stability. However, it is important to consult a financial advisor before trading in commodities.

Gold Rate in Top Cities of India	Silver Rate in Top Cities of India
Gold rate in Ahmedabad	Silver rate in Ahmedabad
Gold rate in Ayodhya	Silver rate in Ayodhya
Gold rate in Bangalore	Silver rate in Bangalore
Gold rate in Bhubaneswar	Silver rate in Bhubaneswar
Gold rate in Chandigarh	Silver rate in Chandigarh
Gold rate in Chennai	Silver rate in Chennai
Gold rate in Coimbatore	Silver rate in Coimbatore
Gold rate in Delhi	Silver rate in Delhi
Gold rate in Hyderabad	Silver rate in Hyderabad
Gold rate in Jaipur	Silver rate in Jaipur

Frequently Asked Questions (FAQs)

What is a commodity exchange?
A commodity exchange is a marketplace where traders buy and sell commodity derivative contracts, such as futures and options, for hedging and speculation.
Which are the major commodity exchanges in India?
The major commodity exchanges in India include the Multi Commodity Exchange (MCX), National Commodity and Derivatives Exchange (NCDEX), and National Multi Commodity Exchange (NMCE).
What is the role of commodity exchanges in India?
Commodity exchanges facilitate transparent and organized trading of commodity derivative contracts, providing platforms for price discovery, risk management, and hedging for manufacturers, farmers, and traders.
What are futures contracts in commodity trading?
Futures contracts are legally binding agreements between two parties to purchase or sell the underlying asset at a predetermined price and date. These are used for risk management and speculation.
What factors should be considered before trading in commodities?
Before trading in commodities, consider factors like regulation, broker reliability, liquidity, and costs. These ensure a secure and efficient trading experience.

April 3, 2025

The Pros and Cons of Commodity Trading

Commodity trading is the process of buying and selling of commodities such as gold, crude oil, copper, etc., in spot markets or derivative markets. Commodity trading has numerous advantages as it helps market participants diversify their portfolios, speculate on future price movements, etc.

However, commodity trading can result in significant losses as prices can change suddenly due to certain factors such as weather, global demand, political events, etc. This makes it difficult to predict how much profit or loss a trader might make.

In this blog, we will discuss the pros and cons of commodity trading, which will help you make smarter trading decisions.

Pros of Commodity Trading

The pros of commodity trading are:

1. Protection Against Inflation

Commodity trading provides a powerful hedge against inflation. Market participants can use derivative contracts to protect their portfolios against inflation. Furthermore, futures contracts allow traders to lock in the price of a commodity for a transaction at a future date. This helps them fix the cost of raw materials and mitigate the impact of rising inflation.

When inflation rises, the price of raw goods rises, and these can specifically include goods like oil, metals, and agricultural items. For example, for a business reliant on raw materials for its manufacturing activities, it is essential to control the input costs. If inflation is expected to rise, the company can buy the futures contracts of the specific raw material and basically fix their buying price for a transaction at a future date.

2. Portfolio Diversification

Commodities are usually traded through futures and options on platforms like MCX. These contracts are not strongly correlated with traditional assets, such as equities and bonds. For example, commodities like gold or oil often perform well when stock markets are underperforming, thus decreasing your portfolio’s overall risk.

3. Opportunity During Global Events

Global events can cause significant price movements in commodities. Trading on exchanges like MCX provides the opportunity to profit from such volatility, as global crises frequently impact commodities prices.

4. Higher Returns

Commodity trading offers margin trading, which means traders can hold a large position with a small capital. If prices move favorably, the profits are significant. However, leverage is also associated with increased risk, as if prices move in the opposite direction, losses can be significant.

5. Transparent and Fair Pricing

Commodity trading often occurs on regulated exchanges such as MCX, ensuring transparent pricing and no price manipulation. All trading takes place on electronic commodity trading platforms, which helps prevent price manipulation. This increases the market participant’s confidence and makes the market more transparent and trustworthy.

Gold Rate in Top Cities of India	Silver Rate in Top Cities of India
Gold rate in Ahmedabad	Silver rate in Ahmedabad
Gold rate in Ayodhya	Silver rate in Ayodhya
Gold rate in Bangalore	Silver rate in Bangalore
Gold rate in Bhubaneswar	Silver rate in Bhubaneswar
Gold rate in Chandigarh	Silver rate in Chandigarh
Gold rate in Chennai	Silver rate in Chennai
Gold rate in Coimbatore	Silver rate in Coimbatore
Gold rate in Delhi	Silver rate in Delhi
Gold rate in Hyderabad	Silver rate in Hyderabad
Gold rate in Jaipur	Silver rate in Jaipur

Cons of Commodity Trading

The cons of commodity trading are:

1. High Risk of Loss

Commodity trading involving futures and options can be risky. This is primarily because of the leverage involved, which is why even small price movements can result in big losses.

2. Price Volatility

Commodity prices can fluctuate rapidly. This can be due to a variety of factors, such as weather, regulatory changes and world events. Just for instance, a natural calamity can harm crops or halt oil production, which can increase prices.

Similarly, a reduced demand for a specific commodity can cause price declines. These unexpected price swings are difficult to forecast. Even experienced traders sometimes struggle with these unpredictable price changes, making commodity trading dangerous and complex to manage.

3. Requires Deep Knowledge

Successful commodity trading requires a thorough grasp of market trends, supply and demand dynamics, etc. This helps you make wise trading decisions, particularly when trading in futures and options.

For example, price swings can be induced by political upheaval in OPEC nations. Because of the turmoil, oil prices may rise or fall significantly, making wise trading decisions extremely tough.

Things to Keep in Mind Before Trading in Commodities

You should remember the following points before trading in commodities:

A higher trading volume in a specific commodity means more market participants are actively buying and selling, which can lead to bigger price changes. It also results in more trading opportunities.
Know how much risk you’re willing to take. High-risk trades can give you more profit, but they also carry a higher chance of losing money.
Keep a close watch on the price trends of commodities. Prices of some commodities can go up fast and drop just as quickly, which makes them risky.
Don’t put all your money into one commodity. Spreading your trading positions across commodities reduces risk and increases your chances for profit.

Conclusion

Commodity trading on platforms such as MCX can provide lucrative trading opportunities. However, trading in commodities also involves risks as commodity prices can be extremely volatile. This is due to variables such as weather, politics, and global demand, which make these markets unpredictable.

Understanding how prices change is critical for success in commodities trading helps you stay on top of market trends. Knowing your financial objectives and the amount of risk you’re prepared to accept is critical.

Choose which commodities to trade and look for strategies on how to take advantage of price fluctuations effectively. Understanding your risk tolerance is crucial. Diversifying your trading positions across many commodities reduces risk.

Stay updated, monitor market movements, and alter your trading plan when necessary. With the appropriate strategy, you can make well-informed trading decisions, helping you achieve your financial goals.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Understanding Commodity Market Analysis
2	What is the Timing for Commodity Market Trading?
3	Risks in Commodity Trading and How to Manage Them
4	5 Tips for Successful Commodity Trading
5	Stock Market vs Commodity Market

Frequently Asked Questions (FAQs)

What is commodity trading?
Commodity trading is the buying and selling of raw materials like gold, oil, and agricultural products in spot or derivative markets to profit from price fluctuations and hedge against risk.
What are the key advantages of commodity trading?
Commodity trading offers protection from inflation, portfolio diversification, and potential high returns. Futures contracts can be used to lock in prices, and market volatility during global events creates additional trading opportunities.
What risks are involved in commodity trading?
Commodity trading carries high risk due to leverage and unpredictable price volatility. Market price changes due to weather, global demand shifts, or political events can result in significant financial losses.
How does commodity trading act as a hedge against inflation?
Commodity trading, particularly through futures contracts, enables traders to lock in prices. This strategy protects against rising raw material costs during inflationary periods.
What should traders consider before engaging in commodity trading?
Traders should assess risk tolerance, monitor market trends, diversify positions, and gain deep market knowledge. Understanding supply and demand dynamics is crucial for making informed trading decisions.

February 25, 2025

What is the Commodity Index?

A commodity Index tracks the price movements of a basket consisting of different kinds of underlying commodities. Commodity indices help traders and investors create benchmarks that reflect the overall performance of the commodity market.

In this blog, we will give information about the commodity index, its types, and major commodity indices in India.

Commodity Index: An Overview

A commodity index represents essentially a weighted index that gauges the price performance of a certain group of commodities. Commodity Indices are meant to expose traders to the wide world of commodities. Some of the most frequently traded commodities in the portfolio might include crude oil, natural gas, gold and silver.

Commodity indexes are different from other indexes. This is because their returns usually depend only on the price changes of the commodities in the index. Unlike stocks or bonds, commodities don’t pay dividends or interest. As commodities don’t offer these payouts, the commodity index returns are solely based on the price performance of underlying commodities.

Types of Commodity Indices

Here are some common types of commodity indices:

1. Broad Commodity Indices

These indices cover a broad commodity universe across different sectors. In India, the MCX iCOMDEX Composite index tracks the performance of crude oil, zinc, gold, etc., thereby covering energy, base metal, and precious metal sectors. The most prominent global broad commodity index is the S&P GSCI (Goldman Sachs Commodity Index). It encompasses 24 commodities, ranging from energy to agriculture to metals.

2. Sector-Specific Commodity Indices

These indices focus specifically on commodities of certain sectors such as energy, agriculture, and other products. In India, the MCX iCOMDEX Base Metal index tracks the performance of Aluminium, Copper, Lead and Zinc. Globally, the S&P GSCI Electric Vehicle Metals Index is a well-known index that tracks the performance of cobalt, copper, aluminium, nickel, and iron ore.

3. Single Commodity Indices

These indices show the price performance of a specific commodity, such as gold, crude oil, etc. For example, MCX iCOMDEX Gold tracks the performance of gold. Other examples of single commodity indices in India are MCX iCOMDEX Silver, MCX iCOMDEX Zinc, etc.

Benefits of Commodity Indices

Some of the most common benefits of commodity indices include:

1. Diversification

Trading in commodity indices is an excellent way for portfolio diversification. By trading in a commodity index, a trader gains exposure to multiple commodities, reducing the risk of relying on the performance of a single asset class. For instance, the MCX iCOMDEX Base Metal index has futures contracts with a ticker symbol named MCX METLDEX, which consists of futures contracts of aluminum, copper, lead, nickel and zinc as its underlying.

2. Inflation Hedge

Commodities, particularly precious metals like gold and silver, have long been considered a hedge against inflation. When inflation rises, the price of commodities like gold and oil often increases. Trading in futures contracts of Indian commodity indices such as MCX iCOMDEX Bullion and MCX iCODMEX Base Metal can help traders safeguard their portfolios during inflationary periods.

3. Economic Indicator

Commodity indices also serve as indicators of economic health. Since commodities are essential for industries like manufacturing, construction, etc., their prices are often tied to the overall economic conditions. By monitoring commodity indices, traders can gain insights into global demand and supply trends.

4. Access to Commodity Markets

While commodity trading can be capital-intensive, access to ETFs provides cost-effective options. By investing in ETFs of specific commodities such as gold and silver, you can gain exposure to commodity price movements without having to deal with the complexities of trading individual commodities or managing physical assets.

Gold Rate in Top Cities of India	Silver Rate in Top Cities of India
Gold rate in Ahmedabad	Silver rate in Ahmedabad
Gold rate in Ayodhya	Silver rate in Ayodhya
Gold rate in Bangalore	Silver rate in Bangalore
Gold rate in Bhubaneswar	Silver rate in Bhubaneswar
Gold rate in Chandigarh	Silver rate in Chandigarh
Gold rate in Chennai	Silver rate in Chennai
Gold rate in Coimbatore	Silver rate in Coimbatore
Gold rate in Delhi	Silver rate in Delhi
Gold rate in Hyderabad	Silver rate in Hyderabad
Gold rate in Jaipur	Silver rate in Jaipur

Major Commodity Indexes: An Overview

Multi Commodity Exchange (MCX) offers 12 commodity indices in total, consisting of composite indices, sectoral indices, and single commodity indices. Indices are given below:

Composite indices: MCX iCOMDEX Composite index
Sectoral Indices: MCX iCOMDEX Bullion index, MCX iCOMDEX Energy index and MCX iCOMDEX Base Metal index.
Single Commodity Indices: MCX iCOMDEX Gold index, MCX iCOMDEX Copper index, MCX iCOMDEX Crude Oil index, etc.

Trading indexes allow you to avoid focusing on specific commodities. It’s an easy method to track the market while minimizing risk. Commodity indices, whether in metals, energy, or agriculture, are an excellent starting place for inexperienced traders.

How to Invest in a Commodity Market Index?

You can invest in the commodity market index in the following ways:

Mutual funds and ETFs can be used to invest or trade in commodities, such as gold and silver.
Another way of trading in commodity indices is through futures contracts. Futures contracts of MCX iCOMDEX Bullion and MCX iCODMEX Base Metal index are available for trading.
Futures and options contracts of specific commodities, such as gold, silver, crude oil, copper, etc., are also available for trading.

Conclusion

Commodity indices help market participants track the performance of the underlying commodities and also provide a way to diversify their portfolio through investing and trading in ETFs, mutual funds, futures and options. In India, MCX provides 12 commodity indices, which consist of composite indices, sectoral indices, and single commodity indices. However, it is advised to consult a financial advisor before investing or trading in commodities.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Best Commodity Trading Platforms in India: Top 10 Picks for Traders
2	What is the Timing for Commodity Market Trading?
3	Risks in Commodity Trading and How to Manage Them
4	5 Tips for Successful Commodity Trading
5	Types of Commodity Market in India

Frequently Asked Questions(FAQs)

What is a commodity index?
A commodity index tracks the price movements of a basket of commodities, helping traders and investors measure the overall performance of the commodity market.
What are the types of commodity indices?
Commodity indices are categorized into broad indices, sector-specific indices, and single commodity indices.
How do commodity indices help in portfolio diversification?
Commodity indices provide exposure to multiple commodities, reducing dependence on a single asset class and thereby enhancing risk management and diversification.
Why are commodities considered an inflation hedge?
Commodities like gold and oil tend to increase in value during inflationary periods, making them effective in preserving purchasing power.
How can one invest in commodity indices?
Investors can trade through mutual funds, ETFs, or futures and options contracts of sectoral indices like MCX iCOMDEX Bullion and MCX iCOMDEX Base Metal.

February 24, 2025

Types of Commodity Market in India

The commodity market plays a crucial role in the global economy. Here, derivative contracts of commodities are traded. It provides a platform for producers and consumers to manage risks and, at the same time, allows traders to take advantage of price movements.

Commodities are bulk-produced raw materials. These can be wheat, soybean, or precious metals. They must meet certain quality and quantity standards to be eligible as an underlying asset of the derivative contracts. These derivative contracts are traded widely among multiple buyers and sellers.

In this blog, we will discuss the types of commodity markets in India.

What is a Commodity Market?

A commodity market is a platform where commodities such as gold, silver, crude oil, agricultural products, etc., are bought and sold. These transactions can happen either via spot transactions or through derivative contracts.

These markets act as bridges between the sellers and buyers of commodities. This way, producers can sell their goods and also hedge against the volatility in the prices while consumers can get the commodities needed at the cheapest price possible.

Types of Commodity Market in India

The commodity market in India can be broadly classified into different types. Some of the common types of commodity markets include:

1. Spot Market

The spot market, or cash market, is a marketplace where commodities are bought and sold for immediate delivery. This market is characterized by physical transactions. Here, buyers and sellers negotiate prices based on the prevailing market conditions. The buyers often take possession of the commodity immediately after the payment has been made.

2. Derivatives Market

Futures

Futures contracts allow you to trade, buy or sell commodities for delivery in the future. The market allows buyers and sellers to enter contracts to purchase or sell a particular commodity at a specified price at a predetermined date.

Options

An option is a type of financial instrument that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price, known as the strike price, on or before a set expiration date.

Options are of two forms:

Call Options: Give the holder the right but not the obligation to buy the asset.
Put Options: Give the holder the right but not the obligation to sell the asset.

Options can be traded before expiration. However, the actual transfer of the asset occurs only after the option is exercised.

Forwards

Forwards contracts are similar to futures contracts but differ in one key aspect. Futures contracts are traded on organized exchanges and have a standardized contract size. On the other hand, forward contracts are over-the-counter (OTC) financial instruments, due to which these contracts are negotiated directly between buyers and sellers.

Gold Rate in Top Cities of India	Silver Rate in Top Cities of India
Gold rate in Ahmedabad	Silver rate in Ahmedabad
Gold rate in Ayodhya	Silver rate in Ayodhya
Gold rate in Bangalore	Silver rate in Bangalore
Gold rate in Bhubaneswar	Silver rate in Bhubaneswar
Gold rate in Chandigarh	Silver rate in Chandigarh
Gold rate in Chennai	Silver rate in Chennai
Gold rate in Coimbatore	Silver rate in Coimbatore
Gold rate in Delhi	Silver rate in Delhi
Gold rate in Hyderabad	Silver rate in Hyderabad
Gold rate in Jaipur	Silver rate in Jaipur

Types of Commodities in the Commodity Market

The commodity market in India offers a wide range of commodities for trading. Here are the types of commodities in the commodity market:

Agricultural commodities: These include grains (e.g., wheat, chana), oil and oilseeds (e.g., soybeans, mustard seeds), spices (e.g., coriander, turmeric), etc.
Energy commodities: These comprise crude oil and natural gas.
Metal commodities: These are commodities made of metal, such as precious metals (gold, silver), base metals (copper, aluminium), etc.

Commodity Trading Platforms

In India, commodity trading is facilitated by various exchanges and platforms. Some of the commodity trading platforms include:

National Commodity & Derivatives Exchange (NCDEX)
Multi Commodity Exchange of India (MCX)

Benefits of Commodity Trading

Commodity trading offers several benefits, including:

1. Diversification

Commodity trading provides access to numerous commodities, which allows traders to spread risks more effectively. They can trade commodities like metals, energy, and agriculture and reduce their reliance on a single sector as these commodities serve as raw materials for multiple sectors of the economy. Commodities are traded all over the globe, which makes them less susceptible to market manipulation. Commodities enable traders to pursue trading opportunities in multiple financial assets and thus limit exposure to a specific financial instrument or sector.

2. Hedging

In commodity trading, hedging guards against unexpected price volatility. Through forward contracts, businesses can fix the cost of their raw materials, helping them maintain consistent financial performance.

Hedging helps traders lessen their exposure to unfavorable market movements. This tactic reduces the risk of adverse price fluctuations causing significant losses.

3. Liquidity

Commodity markets are extremely liquid. This allows traders to execute transactions quickly with minimum price impact. High trading volumes ensure that trades are completed without delay. This liquidity makes it simple to buy and sell assets, which is of extreme importance when trading in large quantities.

4. Transparency

The transparency of commodity markets is excellent. The commodity exchanges in India provide an easy-to-use platform and effective trading environment. Real-time price updates guarantee precision and reliability.

Everybody has access to market data, thereby promoting well-informed decision-making. Transparency reduces the possibility of unfair practices and manipulation. It enables traders to confidently assess conditions and take decisive action.

Strategies for Successful Commodity Trading

To succeed in commodity trading, it’s essential to develop a well-defined trading strategy. Here are some strategies to consider:

Fundamental analysis: This involves examining the core elements that influence commodity prices, i.e., the supply and demand dynamics, weather conditions, and international events.
Technical analysis: Charts and technical indicators can be utilized to recognize patterns and trends in commodity prices and get an idea of future price trends.
Risk management: Employ stop-loss orders and position sizing to manage risk and reduce possible losses.
Diversification: Engage in trading different commodities and apply a range of trading strategies to avoid concentration risk.

Conclusion

Commodities trading through spot transactions and derivative contracts offer a large number of businesses and traders an opportunity to buy, sell and trade commodities. Staying informed about the various types of commodity markets, types of commodities, and trading platforms opens up a lot of trading opportunities.

A well-defined trading strategy used with proper risk management can help you capitalize on trading opportunities offered by the commodity market in India. Consult a financial advisor before trading in commodities.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Understanding Commodity Market Analysis
2	What is the Timing for Commodity Market Trading?
3	Risks in Commodity Trading and How to Manage Them
4	5 Tips for Successful Commodity Trading
5	Stock Market vs Commodity Market

Frequently Asked Questions (FAQs)

What are the main types of commodity markets in India?
India has spot markets for immediate delivery and derivatives markets, including futures, options, and forwards, where commodities are traded as underlying assets of derivative instruments for future delivery.
What types of commodities are traded in India?
Commodities in India are classified into agricultural (wheat, soybeans, spices), energy (crude oil, natural gas), and metals (gold, silver, copper, aluminium), traded across different commodity exchanges.
How do futures and forward contracts differ in commodity trading?
Futures contracts are standardized and traded on regulated exchanges, while forward contracts are private, over-the-counter (OTC) agreements with customizable terms between buyers and sellers.
What are the key benefits of commodity trading?
Commodity trading offers diversification, hedging against price fluctuations, high liquidity, and market transparency, enabling traders to reduce risk and take advantage of price movements.
What strategies can improve success in commodity trading?
Successful traders use fundamental analysis (supply-demand, weather, global events), technical analysis (charts, indicators), risk management (stop-loss, position sizing), and diversification across multiple commodities and strategies to minimize losses.

February 21, 2025

Tax on Commodity Trading in India

With the introduction of commodity transaction tax (CTT), commodity trading in India slowly turned a new page, altering how investors speculate in the market. Not only has this tax made trading more expensive, but the nature of the markets has also shifted as well.

So, let’s have a look at the effects taxation on commodity trading has on your trading strategy and financial planning.

Effects of Trading Costs and Market Behavior

The Commodity Transaction Tax (CTT) in India was introduced on 1 July 2013. This tax on commodity trading was announced during the Budget 2013 by the former Finance Minister P. Chidambaram. This levy is a carbon copy of the Securities Transaction Tax on equities and is created to ensure that there is equality in taxation across different financial securities. You have to pay these charges as a seller of the non-agricultural commodity derivatives.

Currently, the CTT rate is 0.01%, a seemingly tiny amount. But when trading in high volumes, these small percentages can account for huge amounts. The result of this increase in trading costs has been a tangible impact on the behavior of market participants. Volumes have been dipping noticeably among high-frequency traders and speculators who trade on small profit margins and rely on sheer trading volume.

Now, each trade costs more, and traders are carrying out fewer but more incisive trades. If this shift continues, it could lead to a less liquid market, which may, in turn, reduce the popularity of commodities trading.

Different opinions have emerged about the impact of the CTT on the efficiency of the market. Critics say it may keep small investors and hedgers away from the market, thus upsetting the proper functioning of the market.
A few traders have shifted to agricultural commodities that are outside the ambit of CTT. This shift is in line with other emerging trends in trading patterns and calls for a better analysis of the effects of taxes on the trading behavior of market participants.

Taxation Strategy for Profits

The CTT is not the only commodity trading income tax. You also need to know how your profits and losses are taxed. Profits from buying and selling derivative contracts of a particular commodity are classified as business income in India, not as capital gains under the Income Tax Act. The classification carries strategic implications. If your commodity trading profits are speculative (i.e., cash-settled derivatives) in nature, then these profits can only be offset against speculative losses. You can’t offset these losses against income from non-speculative trading activities, which involve the delivery of physical commodities at the expiration of the derivatives contract.

However, non-speculative trading involving the actual delivery of commodities is more flexible. In this case, you can offset speculative and non-speculative profits with losses, offering greater scope for tax planning while trading commodities. Speculative business losses can be carried forward for 4 years, while other non-speculative losses can be carried forward to set off future speculative and non-speculative gains for 8 years.

Traders playing the long game can use these rules to minimize their commodity trading income tax liability over time. In the event of a year with more losses than gains, this strategy can save you a lot of tax. This only works if traders keep detailed records of their transactions and keep them separate from speculative and non-speculative activities. Beyond aiding tax planning, this also ensures compliance with tax regulations, avoiding penalties for misrepresentation or oversight.

Regulatory and Fiscal Policy Implications

The use of CTT was done in line with a fiscal approach concerning taxation of commodity transactions. The tax was launched in 2013 with the view to reduce speculation and, at the same time, increase government revenues.

However, the policy has attracted criticism. Critics argue that it hurts the competitiveness of Indian commodity exchanges against global counterparts.

This is particularly important given that, unlike many other markets around the world, India levies a higher transactional cost. The trading volumes have been significantly affected by the commodity trading income tax.

Market research indicates that India’s commodity trading volume lowered after 2013, which could be a result of CTT. There is still controversy over the issue of reconsidering or eliminating the CTT.
Advocates of CTT see it as contributing both to market stability and revenue, while opponents look at its detrimental effect on efficient market functioning. To investors and brokers, it is vital to keep up with regulatory changes.
This means that to adapt to current policies, it is not only necessary to respond to change but, more importantly, to anticipate how fiscal change might impact existing trading strategies and the market.

Market regulations compel market players to consider various techniques and strategies in the management of risk and taxation to break even and avoid violation of the law.

Read Also: What is Commodity Market in India?

Conclusion

The Indian commodity trading landscape witnessed a significant reduction in trading volumes due to the implementation of CTT in 2013. Moreover, the classification of gains and losses as speculative and non-speculative further complicates the taxation procedure.

Understanding the taxation treatment of trading profits and losses enables traders to better handle capital gain tax on commodity trading by updating their trading strategies for managing profits and losses. However, it is necessary to consult a financial advisor before trading in commodities.

Gold Rate in Top Cities of India	Silver Rate in Top Cities of India
Gold rate in Ahmedabad	Silver rate in Ahmedabad
Gold rate in Ayodhya	Silver rate in Ayodhya
Gold rate in Bangalore	Silver rate in Bangalore
Gold rate in Bhubaneswar	Silver rate in Bhubaneswar
Gold rate in Chandigarh	Silver rate in Chandigarh
Gold rate in Chennai	Silver rate in Chennai
Gold rate in Coimbatore	Silver rate in Coimbatore
Gold rate in Delhi	Silver rate in Delhi
Gold rate in Hyderabad	Silver rate in Hyderabad
Gold rate in Jaipur	Silver rate in Jaipur

Frequently Asked Questions (FAQs)

What is the Commodity Transaction Tax (CTT) in India?
The Commodity Transaction Tax (CTT) is a tax on non-agricultural commodity derivatives, introduced on July 1, 2013, at 0.01% per transaction.
How are profits from commodity trading taxed in India?
Profits from commodity trading are classified as business income under the Income Tax Act. Speculative profits (cash-settled trades) are taxed differently from non-speculative profits (delivery-based trades), affecting tax planning strategies.
Can speculative and non-speculative losses be carried forward?
Yes, speculative losses can be carried forward for 4 years, while non-speculative losses can be carried forward for 8 years. Non-speculative losses can be offset against both types of profits.
How has the introduction of CTT affected commodity trading in India?
CTT has increased trading costs, leading to lower market liquidity. Many traders shifted to agricultural commodities, which are exempt from CTT, making Indian commodity exchanges less competitive globally.
What should traders consider for better tax planning in commodity trading?
Traders should maintain records, use loss carryforward rules, and stay updated on tax policies. Consulting a financial advisor helps optimize tax strategies while ensuring compliance with regulations.

February 18, 2025

Understanding Commodity Market Analysis

In the world of trading, the commodity market has a prominent place. Commodities include agricultural products, energy resources, metals, etc. For traders, the commodity market offers an opportunity to earn profits by creating long and short positions in the futures and options contracts. However, understanding this market requires extensive knowledge about the factors that influence the commodity market, such as economic data releases, geopolitical events, etc.

In today’s blog, we will explain various commodity trading tips.

What is Commodity Market analysis?

Analysis of the commodity market is a process in which a trader studies and interprets all the factors that can influence the prices of commodities. The main aim of analyzing the commodities market is to get insights into the market trends and make informed trading decisions.

There are two major ways to analyze any financial asset: fundamental and technical. Let’s look at the two approaches used in more detail to analyze the commodities market.

Fundamental Analysis in the Commodity Market

What it is: The main objective behind conducting a fundamental analysis of the commodities market is to understand the variables that influence the supply and demand for a given commodity. It focuses on studying economic, political, and other aspects which could impact the prices of a specific commodity. Therefore, conducting a thorough fundamental analysis is crucial in the commodity market before starting trading in it.

Key Factors to Consider

Key factors to consider while conducting a fundamental analysis of the commodity market are:

Inventory: Changes in inventory levels have a direct impact on the demand for the commodity and influence the price level of a commodity. For example, if the inventory of crude oil increases and the demand remains constant, the price of crude oil will decrease.
Consumer Preference: Demand for certain commodities can be impacted indirectly by changes in consumer spending. For example, suppose the average income of the majority of the population is rising, and there has been a reduction in demand for silver and an increase in demand for gold.
Global Events: Unfavourable events happening around the world cause the demand for certain commodities to increase. For example, at the time of COVID-19, the stock market crashed, and the demand for gold increased as people considered it a safe haven for investment.
Currency Rate: Most commodities around the globe are priced in US dollars; hence, any change in the rate of USD can impact the prices of the commodity.
Trade Policies: Trade agreements and import-export tariffs between the countries could impact the supply and demand of commodities.

Example: A few examples of fundamental analysis on the commodity markets are mentioned below:

1. Decision of OPEC Countries: The Organisation of Petroleum Exporting Countries (OPEC) consists of countries that play an important role in determining the supply of crude oil and indirectly influencing crude oil prices. For instance, if OPEC declares a reduction in crude oil production, the supply will be reduced, which will raise prices.

2. Impact of Weather: Any natural disaster, such as droughts, floods, etc., can dramatically impact the agricultural yield and increase the prices of the current inventory of agricultural products.

Technical Analysis in Commodity Markets

What it is: Technical analysis is a process of studying the historical price movement and patterns in market data to determine expected future price movement for making trading decisions. Head and shoulder, symmetrical triangles, bullish engulfing, etc., are a few examples of such patterns that traders widely use. While conducting technical analysis, it is assumed that the commodity’s current price reflects all relevant information. Technical analysis is based on three main principles: history repeats itself, pricing discounts everything, and price moves in patterns. Therefore, if any traders wish to trade in commodities, they must have proper knowledge of technical analysis tools.

Key tools and indicators: The key tools and indicators which are used in technical analysis are as follows:

1. Price charts: A commodity trader uses price charts of a particular commodity to analyze past price movements and wait for similar patterns to create trading positions.

2. Volume: Volume in a particular commodity reflects the trading activity in it during that particular time frame. For example, if the trading volume is low, the commodity prices tend to consolidate in a channel, but if the volume is high, breakout in any particular direction is a strong indication of a strong trend.

3. Resistance and support: The two important metrics a trader uses while making decisions using technical analysis tools are resistance and support, which represent the historical price levels beyond which the commodity prices generally don’t give a breakout. For example, if any commodity breaks its nearest resistance level with good volume, we can expect an upward movement, and if it breaks its support, we can expect a bearish price trend.

4. Analysis of Trend: Technical analysts have classified price movement into three main categories, namely, sideways trend, downtrend, and uptrend. For example, when a commodity is in an uptrend, it signifies the rise of that particular commodity. Similarly, if a commodity is in a downtrend, the commodity price is declining quickly. However, if the price of the commodity moves within a range in a consolidated manner, then traders should wait for a breakout.

Why it works?

The reasons why technical analysis works in the commodity market are as follows:

1. Market Sentiments: Market sentiment influences the price of the commodity in the short term, and technical analysis of the market sentiment can help a trader make informed trading decisions.

2. Price Action: The price action pattern in the price chart of a commodity reflects the forces of demand and supply.

3. Over-Bought and Over-Sold Zone: The trader can easily trace out the over-bought zone and over-sold zone of a particular commodity by doing technical analysis. For example, if the price of a commodity lies in an over-sold zone, then the trader can make a long position in it and vice-versa.

4. Entry and Exit: Technical analysis can help an investor in identifying the entry and stop-loss levels.

Combining Analysis Techniques

There are various benefits of combining technical analysis tools with fundamental analysis while trading in the commodity market; a few of such benefits are mentioned below:

1. Management of Risk: While technical analysis can help you safeguard your capital through the determination of a proper entry and stop-loss level, fundamental analysis allows one to evaluate the various parameters affecting a particular commodity, which can impact the performance of the commodity in the long run.

2. Opportunities: While technical research may aid in determining the best time to enter and exit a market, fundamental analysis may assist an investor in finding a commodity that has the potential to perform well over the long term.

3. Accuracy: Combining both fundamental and technical tools helps increase the probability of successful trade and profitability.

Tools and Resources for Commodity Market Analysis

The commodity market makes use of several instruments to analyze the price movement of commodities, some of which are as follows:

Fundamental Analysis Resources: In the market, resources and data for doing fundamental analysis are:

1. Macro-Economic News: The performance of the commodities market is influenced by several global economic indicators, such as data on industrial output, the exchange rate, and other geopolitical events. Reuters, Bloomberg, etc., are the platforms that provide regular updates on macroeconomic news.

2. Commodity Report: These are research reports that consist of information about current production, price points, key players, etc. and are released by agencies on a monthly or quarterly basis.

3. Inventory: It is a critical piece of information as inventory levels reflect the quantity of commodities currently available. Low inventory levels increase demand and hence raise prices of that commodity. Usually, these reports are published weekly.

Technical Analysis Tools: These tools help a trader identify the trends in prices of a commodity in the following ways:

1. Price Charts: The commodity price movements can be tracked and analyzed using price charts

2. Technical Indicators: Traders use a variety of technical indicators such as relative strength index, moving average, and others to predict future price movement.

Read Also: What is Commodity Market in India?

Conclusion

Finally, before beginning your trading journey in the commodity market, it is essential to have a thorough understanding of it. Technical analysis and fundamental analysis are the two major approaches that can be used to analyze the commodity market. Combining these two results in an ideal approach that may result in increased profitability. Before trading in the commodity market, you are advised to speak with your financial advisor.

To have a better understanding of the commodity market, you can open a demat account with Pocketful and use the advanced technical tools and other key information they offer to analyze the commodity market.

Gold Rate in Top Cities of India	Silver Rate in Top Cities of India
Gold rate in Ahmedabad	Silver rate in Ahmedabad
Gold rate in Ayodhya	Silver rate in Ayodhya
Gold rate in Bangalore	Silver rate in Bangalore
Gold rate in Bhubaneswar	Silver rate in Bhubaneswar
Gold rate in Chandigarh	Silver rate in Chandigarh
Gold rate in Chennai	Silver rate in Chennai
Gold rate in Coimbatore	Silver rate in Coimbatore
Gold rate in Delhi	Silver rate in Delhi
Gold rate in Hyderabad	Silver rate in Hyderabad
Gold rate in Jaipur	Silver rate in Jaipur

Frequently Asked Questions (FAQs)

What is the most reliable method of commodity market analysis?
There are several ways to analyze the commodity market, but technical analysis is the most popular.
Can beginners use technical analysis effectively?
Yes, a beginner can use technical tools efficiently, but to correctly spot chart patterns and execute profitable trades, it is suggested that they must first learn the basics of technical analysis or do some paper trading before trading with real money.
How often should I analyze the market?
The commodity market analysis should be done frequently as it is extremely dynamic due to its dependence on numerous variables.
What are the best tools for tracking commodity prices?
Several platforms offer price charts and other technical tools for tracking and analyzing commodity prices, but Pocketful offers the best technical charts and advanced technical tools.
What are the factors on which the prices of commodities depend?
The GDP growth rate, interest rates, currency exchange rates, commodity inventory levels, and other factors are some of the variables that affect commodity prices.

January 23, 2025

Risks in Commodity Trading and How to Manage Them

Commodity trading is the process of buying and selling commodities such as crude oil, gold, agricultural products, etc. Numerous trading opportunities emerge for traders every day, but unfortunately, risk also accompanies commodity trading. These risks arise from geopolitical and other economic factors, making this market very volatile and filled with high-risk-reward trading opportunities.

This blog focuses on the different risks involved and risk management in commodity trading. We will explain the major risks and describe the strategies to tackle them.

5 Key Risks in Commodity Trading

Commodity trading risks are the various risks that traders face while participating in the commodity market. These risks are determined by factors such as the supply-demand balance, general macroeconomic conditions, and sometimes the impact of unexpected events. Below are the most important risks, with examples cited and techniques on how to manage them.

1. Price Volatility Risk

What it is:

One of the greatest risks in commodity trading is price volatility. Commodities are extremely sensitive to supply and demand, political instability, weather conditions, or any other natural disasters.

Examples:

A rise in crude oil prices was observed in 2022 when the war began between Ukraine and Russia.

The price of wheat and many other commodities was high due to the drought affecting specific regions.

How to Manage:

Set stop-loss orders in volatile market conditions.

Diversify your trading positions across different commodities in order to minimize risk.

Track the latest market trends and make quick trading decisions according to them.

2. Credit Risk

What it is:

Credit risk arises when a party in the commodity trading contract fails to meet his financial obligations. This occurs in OTC markets.

Examples:

A buyer fails to make payment upon maturity of the forward contract.

A counterparty defaults and is unable to deliver commodities as specified in the forward contract.

How to Manage:

Engaging in regulated exchanges with clearinghouses that eliminate counterparty risks.

Conduct due diligence before entering into contracts with counterparties.

Security deposits or collateral agreements so that counterparty fulfills the contract obligations.

3. Geopolitical Risk

What it is:

Events such as wars, trade restrictions, and political instability can cause a disruption in the supply chain and dramatically influence commodity prices.

Examples

Sanctions on Russian oil exports caused a global shortage of crude oil in 2022.

China placed restrictions on the export of rare earth metals in 2023, which affected the semiconductor manufacturing companies that use them as raw materials.

How to Manage:

Monitor recent news in the world to be able to anticipate any disruption beforehand.

Use derivative instruments to fix prices and reduce uncertainty.

4. Leverage Risk

What it is:

Leverage enables the trader to create large positions with relatively small amounts of capital. Both profits and losses are magnified using leverage. Overuse of leverage can lead to huge losses.

Examples:

A trader’s long position in gold futures with high leverage can result in huge losses if there is an unexpected drop in gold prices.

High levels of leverage caught many retail traders off-guard when the price of oil crashed overnight in 2020.

How to manage:

Limit the use of leverage by ensuring that position size is aligned with your level of risk tolerance.

Maintain a sufficient balance in your trading account to avoid margin calls.

5. Liquidity Risk

What it is:

Liquidity risk occurs when not enough trading activity is happening in the commodities market. Without sufficient liquidity, creating a long or short position in a commodity can be challenging without affecting its price.

Examples:

Commodities like lead and copper usually have lower liquidity than crude oil or gold.

When the economy experiences a recession, market participation reduces, and liquidity worsens.

How to control:

Trade in high-liquidity commodities such as crude oil, gold, and natural gas.

Monitor the trading volumes and identify trading sessions during which market activity usually declines and avoid trading during that session.

How to Effectively Manage Risks in Commodity Trading

Identifying the possible risks may be the first step, but a comprehensive risk management strategy provides you with a plan to mitigate these risks. Below are a few ways to manage the risks in commodity trading effectively:

Developing a Risk Management Plan: Begin with a comprehensive plan that defines your risk tolerance, investment goals, and exit strategies.
Derivative Instruments: Derivatives include futures, options, and swaps. Such instruments can be used to hedge the risks that exist in commodity trading.
Stay Informed on Market Developments: Use real-time market data and news to anticipate future events and the associated risks. Most commodity trading platforms provide regular updates that help traders make the right decisions.
Diversify Your Portfolio: Allocate your trading capital across different commodity types so that you don’t suffer a huge loss due to unfavorable events affecting a particular commodity.
Use Technology: The most advanced trading platforms have all these sophisticated tools, such as algorithmic trading bots, risk analytics, and automated alerts, which allow traders to make swift decisions and, thereby, reduce risks.
Set Realistic Expectations: Don’t be tempted to overtrade and chase high returns. Consistent profits arise from disciplined trading and proper risk management.

Conclusion

Buying and selling commodities is considered risky, but you can master it with a disciplined approach to risk management and a well-defined trading strategy. Active risk management approach and advanced trading platforms can help you avoid major risks arising from price volatility, high leverage or geopolitical events. Before trading in commodities, one must make sure that one’s knowledge, trading strategy, and risk management system are in place in order to remain successful over the long term.

Gold Rate in Top Cities of India	Silver Rate in Top Cities of India
Gold rate in Ahmedabad	Silver rate in Ahmedabad
Gold rate in Ayodhya	Silver rate in Ayodhya
Gold rate in Bangalore	Silver rate in Bangalore
Gold rate in Bhubaneswar	Silver rate in Bhubaneswar
Gold rate in Chandigarh	Silver rate in Chandigarh
Gold rate in Chennai	Silver rate in Chennai
Gold rate in Coimbatore	Silver rate in Coimbatore
Gold rate in Delhi	Silver rate in Delhi
Gold rate in Hyderabad	Silver rate in Hyderabad
Gold rate in Jaipur	Silver rate in Jaipur

Frequently Asked Questions (FAQs)

What are the most volatile commodities to trade?
Some of the most volatile commodities are crude oil, natural gas, and lead. Their prices can change sharply due to supply-demand imbalances, weather conditions, or geopolitical events.
How can I avoid losses due to leverage?
You can avoid losses due to leverage by creating conservative trading positions, maintaining sufficient margins, and having strict stop-loss levels to prevent significant drawdowns.
What is the best way to hedge in commodity markets?
The best way to hedge is by using derivative instruments such as futures and options.
Can I trade commodities with minimal risk?
No trade can be completely risk-free; however, you can definitely minimize risks by trading in highly liquid commodities, designing sophisticated risk management tools, and using leverage judiciously.
What is the role of diversification in commodity trading?
Diversifying the portfolio ensures the lowering of risk by spreading investments across many classes of commodities like energy, metals, and agriculture. If there is an adverse price change for a certain commodity, the rest can mitigate losses by performing well, ensuring effective risk management during volatile markets.

January 21, 2025

5 Tips for Successful Commodity Trading

If you are looking for some tips on how to successfully trade commodities, then this blog is for you. There are various commodity trading tips and tricks through which you can increase your chances of earning a profit while trading in commodities. You can make better commodity trading strategies by incorporating the tips discussed in this blog.

In this blog, we will give you an overview of five tips for successful commodity trading.

Here Are the 5 Tips for Successful Commodity Trading

Commodity trading has gained popularity in recent years. Trading commodities can be difficult for a new trader, but to successfully negotiate the complexity of the commodities market, you must take calculated risks, and for this, you must have proper trading strategies. The following are the five key commodity tips for new traders that can help them succeed in commodity trading:

1. Market Cycle

Similar to other financial markets, the commodities market likewise goes through cycles. The commodity market cycle is affected by various elements, including industrial, geopolitical, and economic.
For example, depending on the needs of the area, the demand for fossil fuels for heating purposes may increase in the winter, causing their prices to rise.
These short-term cycles offer trading opportunities; however, it is required to manage your risk efficiently.

2. Tracking the Global Events

The prices of commodities are dependent on various international events. A trader must keep track of these events to see patterns and make wise judgments. For example, a rise in geopolitical tension or political instability can cause the demand for safe havens such as gold and silver to rise, resulting in an increase in the price of gold.
Reuters, Bloomberg, and other platforms are available to track world events. In addition, several government organizations disclose various kinds of data on a weekly or monthly basis, which must also be monitored. The performance of a specific commodity is directly impacted by such news and data.

3. Volatility

Commodity trading is characterized by significant volatility, which is caused by several variables, including supply and demand, global events, market liquidity, etc. Thus, it is crucial to understand volatility to effectively manage risk. The two main determinants of volatility are supply and demand; commodities with limited supply are typically more volatile, whereas those with abundant supply have low volatility. Due to their widespread use in various industries, base metals like copper and aluminium saw a sharp increase in price during periods of economic expansion.

4. Leveraged Positions

Leverage allows a trader to take on significant market positions with very little capital. This raises the possibility of increasing profit, but it also raises the risk. Borrowing money from the broker is known as leverage, and it is advantageous when the market is moving in your favour. If the market is moving against your trading position, the leveraged position increases your losses.
The commodity market is unpredictable, and any significant price change can result in margin calls and large losses for traders. These losses can cause emotional stress and make impulsive trading decisions that further increase losses. Therefore, it is advisable to use leverage with caution.

5. Selecting Broker

Even after designing a profitable trading strategy, you might face issues on how to execute it. There are various commodity trading platforms in the market offered by brokers; however, finding the right broker who offers smooth transaction execution at minimum cost should be one’s top priority. The commodity trading platform must be registered with regulatory bodies such as the Securities and Exchange Board of India. Furthermore, a good broker sends authentic research reports and related study materials to their traders.

Thus, pick a broker like Pocketful that offers you top-notch services at a low cost through their cutting-edge technology-driven platforms. In addition to this, they offer you a variety of tools and enable you to trade in all commodities at the lowest cost, which helps you maximize your profit.

Conclusion

On a concluding note, using the above-mentioned tips, a trader increases his/her probability of being profitable in commodity trading, but doing so calls for self-control and the ability to make wise decisions. The likelihood of designing a profitable trading strategy can be increased by constantly learning new things as the market’s dynamics change so quickly, so it is necessary to be up to date on news and events when trading in the commodity market. If you miss any crucial updates, you could potentially lose money.
Before making any investment decisions, it is advisable to speak with your investment advisor because commodity trading carries a high level of risk and may not be appropriate for all market participants.

You can open a free commodity trading account with Pocketful, which provides advanced charting tools for analyzing the commodity market.

Gold Rate in Top Cities of India	Silver Rate in Top Cities of India
Gold rate in Ahmedabad	Silver rate in Ahmedabad
Gold rate in Ayodhya	Silver rate in Ayodhya
Gold rate in Bangalore	Silver rate in Bangalore
Gold rate in Bhubaneswar	Silver rate in Bhubaneswar
Gold rate in Chandigarh	Silver rate in Chandigarh
Gold rate in Chennai	Silver rate in Chennai
Gold rate in Coimbatore	Silver rate in Coimbatore
Gold rate in Delhi	Silver rate in Delhi
Gold rate in Hyderabad	Silver rate in Hyderabad
Gold rate in Jaipur	Silver rate in Jaipur

Frequently Asked Questions (FAQs)

How much capital do I need to start trading in commodities?
The minimal amount of capital needed to begin trading in the commodity market depends on the commodity being traded. A commodity with a higher contract value requires more margin than a commodity with a lower contract value.
What commodities are best for beginners to start trading?
Beginners can begin trading in commodities such as crude oil, gold, copper, aluminium, etc.
What is commodity trading?
Commodity trading is the process of forecasting future price movements and creating long and short positions in commodities to make money.
How to start commodity trading?
A commodity trading account is necessary to begin trading in commodities. There are various commodities trading platforms in the market, but Pocketful provides the best commodity trading platform with advanced research tools.
What are the most traded commodities in India?
The most common commodities traded by traders in India are gold, silver, and crude oil.

January 18, 2025

Best Online Commodity Trading Platforms in India: Top 10 Picks for Traders

Commodity trading is a dynamic sector that requires speed, reliability, and accuracy; hence, before starting commodity trading, choosing the best commodity trading platforms is essential. A new trader who wishes to start their commodity trading journey is generally confused about which trading platform is suitable for them.

To clear your confusion, Pocketful is here with another blog explaining the key features of the top 10 commodities platforms in India.

What Makes a Good Online Commodity Trading Platform?

A commodity trading platform is a place where sellers and buyers come together to buy and sell different commodities such as crude oil, gold, etc. In India, there are various brokers offering trading services to investors, but choosing the best trading platform among them requires knowledge about their key features.

A good commodity trading platform plays an important role in commodity trading avenues; the major factors that make the best commodity trading brokers in India are as follows:

User Interface: The interface of the commodity trading app provided by the broker must be user-friendly and easy to use.
Reliability: The real-time data provided by the commodity trading platforms must be accurate and reliable
Analytical Tools: The platform which you choose to trade in commodities should be equipped with advanced analytical tools.
Support: The support system of the commodity trading platforms must be available 24/7 to resolve investors’ queries.

Top 10 Commodity Trading Platforms – Comparison Table

Platform	Account Opening Charges	Brokerage Fees	Annual Maintenance Charges (AMC)	Key Features
Pocketful	₹0	₹0 on equity delivery trades	₹0 for the first year	User-friendly interface, free APIs for trading automation
Angel One	₹0	₹20 per executed order or 0.25% of transaction value (whichever is lower)	₹240 per year	Robust advisory services, strong offline presence
Zerodha	₹200	₹20 or 0.03% per executed order (whichever is lower)	₹300 per year	Flat-fee structure, extensive educational resources
Upstox	₹0	Up to ₹20 per order	₹150 + GST per year	Advanced technical analysis tools, user-friendly platform
ICICI Direct Securities	₹0	₹20 per order	₹700–₹975 per year	Integrated 3-in-1 account (banking, trading, demat), comprehensive research
Kotak Securities Limited	₹0–₹499	₹20 per executed order for delivery trades	₹0–₹600 per year	Trusted brand, extensive educational support
Motilal Oswal Financial Services Limited	₹0	0.02% for commodity futures; ₹200 per lot for options	₹400 per year	Portfolio management services, in-depth research reports
IIFL	₹0	0.25% of transaction value for commodity futures; ₹25 per lot for options	₹250 per year	Robust research and advisory services, user-friendly platform
5Paisa	₹0	₹20 per executed order	₹300 per year	Flat-fee trading across segments, cost-effective solutions
Sharekhan	₹0	₹20 per order	₹400 per year	Comprehensive training programs, powerful trading terminal

Disclaimer: This content is for informational purposes only and does not constitute financial advice. Platform features and charges may change—please verify details directly with the service providers before making any decisions.

1. Pocketful – Free Commodity Trading Apps

It is an emerging stock broking firm offering investment opportunities in various asset classes at low fees. The mobile app is easy to use and has a user-friendly interface. Pocketful was launched in 2024 and is a subsidiary of Pace Stock Broking Services. Pocketful has been developed by professionals with more than 27 years of experience. Pocketful is different from other discount brokers as it offers zero delivery and account opening fees, making it the best option for both traders and investors.

Key Features:

Pocketful offers a free commodity trading platform, as there are no account opening fees.
The account opening process is completely online and can be completed without any paperwork.
Pocketful offers APIs to code your trading strategy and automate the trading process.

Best For: The Pocketful platform is suitable for all kinds of investors and traders as it provides a user-friendly interface offering zero brokerage on equity delivery and zero annual maintenance charges for the first year. It also provides advanced trading tools to analyze the market. Hence, one can consider opening a Demat account with Pocketful.

2. Angel One

Angel One is among the leading full-time brokers in India. The company was incorporated in 1996, offering a wide range of services, ranging from stock to commodity trading. It also offers investment advisory services. Their innovative platform focuses on customer needs and wants.

Key Features:

Good customer support is considered the key benefit of opening a demat account with Angel One.
It also provides technical analysis tools in their app.
Angel One has a strong offline presence across the nation.

Best For: This platform is appropriate for individuals who rely on a broker for investing advice.

3. Zerodha

Zerodha is a prominent player in the Indian Stock broking industry. It offers trading facilities in commodity and other investment options. It was founded by the Kamath Brothers in 2010 with a focus on using advanced technology to develop a unique trading platform. Zerodha introduced a new pricing scheme, which was a flat brokerage for trading.

Key Features:

Zerodha is known for its cutting-edge technology and easy-to-use trading interface.
They also have a dedicated customer support team, which helps the investor to resolve their queries.
Zerodha offers a platform known as Varsity, which is an open and free market education platform.

Best For: This platform is suitable for investors who wish to trade in a stock market, with the broker offering low brokerage fees.

4. Upstox

This platform offers a user-friendly trading platform. They have advanced technical tools that help an investor identify the trend of a commodity and execute a trade based on it. They also offer an option chain with a strategy mode in which you can build your strategy and execute the trade.

Key Features:

Through the Upstock app, one can easily execute the trades.
On the platform, you can make multiple watchlists and keep track of various commodities.
The company charges zero AMC to maintain an account with them.

Best For: Traders who want to use technical analysis as a tool to take intraday and swing trades.

5. ICICI Direct Securities

ICICI Direct Securities is one of India’s leading stockbrokers and is a subsidiary of ICICI Bank, a major player in India’s private-sector bank. ICICI Direct offers a three-in-one account, which is a combination of savings, trading, and Demat accounts. Through their three-in-one account, an investor can easily transfer money from their savings account to their trading account.

Key Features:

The company has a strong presence across the nation through its local offices, which helps its investors resolve their queries quickly.
The company offers research and advisory services to their customers.
It also offers personalized wealth management solutions to its investors.

Best For: Investors who wish to have support through local branch offices can opt for ICICI Direct Securities.

6. Kotak Securities Limited

Kotak Securities is a subsidiary of one of India’s biggest private sector banks called Kotak Mahindra Bank. Kotak Securities offers a wide range of products to its investors, including stocks, commodities, derivatives, etc. The web-friendly Kotak Stock Trader or the desktop-centric KEAT Pro X, for example, both cater to active traders with live data from the markets.

Key Features:

In addition to commodity trading, Kotak Securities provides a variety of investment opportunities, including stocks, mutual funds, etc.
Kotak Securities runs various programs to educate investors.
The company has a strong brand reputation as it is backed by Kotak Bank.

Best For: Kotak Securities is suitable for investors who wish to access the learning material and tutorials about the stock market.

7. Motilal Oswal Financial Services Limited

Motilal is considered a prominent player in the Indian broking industry and was established in 1987. It offers various investment options, portfolio management services, advisory services, etc. They provide modern trading platforms, including a desktop terminal and a mobile app. The company has over 30 years of experience and provides research and advisory services.

Key Features:

Motilal Oswal Financial Services Limited offers customized financial solutions to its customers.
Motilal Oswal’s trading app is considered some of the best in the industry due to its user-friendly interface.
Loan against securities facility is offered by Motilal, allowing an investor to pledge their securities and get the loan.

Best For: Suitable for an investor who wants other customized financial products in one place such as portfolio management services.

8. IIFL

IIFL was founded in 1985 as a part of the India Infoline Group. Initially, it was established as an advisory firm and focused on research and its related services. It was listed on the Indian Stock Exchange in the year 2005 and rebranded itself as India Infoline. Through their research reports, the company ensures that their investors make sound investment decisions, and they also offer an advanced commodity trading platform

Key Features:

The company offers research and advisory services to their customers.
The company offers a user-friendly commodity trading platform.
IIFL provides various free educational sessions to help its clients enhance their knowledge.

Best For: Investors who want research and advisory services along with a good trading platform.

9. 5Paisa

5Paisa is one of the top discount brokers in India, providing commodity trading and other services. It was established in 2016 with the primary objective of offering affordable financial services. They are also acknowledged by AMFI as a mutual fund distributor.

Key Features:

They offer a user-friendly web platform and a mobile trading platform to investors, offering them a seamless trading experience.
5Paisa offers investment in mutual funds through its platform.
Their FnO 360 platform offers advanced tools so that investors can make informed trading decisions.

Best For: Investors looking to learn about the stock market through interactive sessions can opt for 5Paisa.

10. Sharekhan:

Sharekhan was founded in 2000, and it is one of the first broking firms in India to offer retail investors access to online trading platforms. It exponentially grows its business by offering franchisees throughout the country. It is known for its offline presence and customer support.

Key Features:

They offer a desktop-based trading terminal known as Trade Tiger, which is equipped with advanced trading tools.
Sharekhan offers an advanced training programme for its investors through its online courses, which is known as Sharekhan Classroom.
It has a dedicated customer support team to address its customers’ queries.

Best For: Sharekhan is best suited for those who wish to learn something new about technical and fundamental analysis.

How to Choose the Right Commodity Trading Platform App?

There are various parameters that one should consider before choosing an online commodity trading platform; a few of such key features are mentioned below:

Understanding Needs: Make sure the platform that you are opting for meets all of your needs.
User Interface: The user interface of the application must be easy to understand and reliable to enhance the user experience.
Technical Tools: There are various types of advanced trading tools that traders require to trade efficiently in the commodity market.
Execution: The commodity trading platform must execute orders instantly and efficiently.
Charges: The trading platform that you are opting for must offer its trade execution services at a low cost.
Hidden Charges: There must be no hidden charges in the commodity trading platform that you are opting for.

Conclusion

To sum up, in this blog, we have given you an overview of the best commodity trading platforms in India. Trading in commodities gives you a chance to gain significant profit with knowledge and expertise. Although many brokers are offering online commodity trading platforms, it is advised that you evaluate brokers based on their fees, the trading platform, etc., offered by them and then select the one suitable for you.

Pocketful also offers you an online commodity trading platform with no account opening charges, and it is among the best commodity trading apps in India.

Gold Rate in Top Cities of India	Silver Rate in Top Cities of India
Gold rate in Ahmedabad	Silver rate in Ahmedabad
Gold rate in Ayodhya	Silver rate in Ayodhya
Gold rate in Bangalore	Silver rate in Bangalore
Gold rate in Bhubaneswar	Silver rate in Bhubaneswar
Gold rate in Chandigarh	Silver rate in Chandigarh
Gold rate in Chennai	Silver rate in Chennai
Gold rate in Coimbatore	Silver rate in Coimbatore
Gold rate in Delhi	Silver rate in Delhi
Gold rate in Hyderabad	Silver rate in Hyderabad
Gold rate in Jaipur	Silver rate in Jaipur

Frequently Asked Questions (FAQs)

What are the fees involved in commodity trading on these platforms?
There are various types of fees involved in this commodities trading platform, such as brokerage, STT, SEBI Turnover Fees, GST, etc.
Can I trade commodities in India without a broker?
No, you cannot trade in commodities unless you open a commodity account with a broker.
How can I practice commodity trading without real money?
One can practice commodity trading without using real money through paper trading strategies and using a free trading simulator.
Can I trade in Gold and Silver?
Yes, you can trade in gold and silver through a commodity trading account, and you can open it with a Pocketful.
Does Pocketful offer trading opportunities in commodities?
Yes, one can begin their trading journey in commodities by opening a Demat and a trading account with a Pocketful.

January 15, 2025

Category: Commodities

What is Commodity Arbitrage?

Key features of Commodity Arbitrage

Types of Commodity Arbitrage

1. Spatial Arbitrage

2. Temporal Arbitrage

3. Inter-Exchange Arbitrage

4. Cash and Carry Arbitrage

5. Statistical Arbitrage

Commodity Arbitrage Strategies in India

Commodity Arbitrage Example

Advantages of Commodity Arbitrage Trading

Risks and Challenges in Commodity Arbitrage

Conclusion

FAQs

What is commodity arbitrage?

Is commodity arbitrage legal in India?

Which exchanges allow commodity arbitrage in India?

What are the major types of commodity arbitrage?

How much profit can one make through arbitrage trading?

What is a Commodity Exchange?

Major Commodity Exchanges in India

1. Multi Commodity Exchange of India (MCX)

2. National Commodity and Derivatives Exchange (NCDEX)

3. National Multi Commodity Exchange (NMCE)

Did you know?

Different Types of Commodity Trading

Things To Consider Before Trading in Commodities

Conclusion

Frequently Asked Questions (FAQs)

What is a commodity exchange?

Which are the major commodity exchanges in India?

What is the role of commodity exchanges in India?

What are futures contracts in commodity trading?

What factors should be considered before trading in commodities?

Pros of Commodity Trading

1. Protection Against Inflation

2. Portfolio Diversification

3. Opportunity During Global Events

4. Higher Returns

5. Transparent and Fair Pricing

Cons of Commodity Trading

1. High Risk of Loss

2. Price Volatility

3. Requires Deep Knowledge

Things to Keep in Mind Before Trading in Commodities

Conclusion

Frequently Asked Questions (FAQs)

What is commodity trading?

What are the key advantages of commodity trading?

What risks are involved in commodity trading?

How does commodity trading act as a hedge against inflation?

What should traders consider before engaging in commodity trading?

Commodity Index: An Overview

Types of Commodity Indices

1. Broad Commodity Indices

2. Sector-Specific Commodity Indices

3. Single Commodity Indices

Benefits of Commodity Indices

1. Diversification

2. Inflation Hedge

3. Economic Indicator

4. Access to Commodity Markets

Major Commodity Indexes: An Overview

How to Invest in a Commodity Market Index?

Conclusion

Frequently Asked Questions(FAQs)

What is a commodity index?

What are the types of commodity indices?

How do commodity indices help in portfolio diversification?

Why are commodities considered an inflation hedge?

How can one invest in commodity indices?

What is a Commodity Market?

Types of Commodity Market in India

1. Spot Market

2. Derivatives Market

Types of Commodities in the Commodity Market

Commodity Trading Platforms

Benefits of Commodity Trading

Commodity trading offers several benefits, including: