27 Mar 2017 | 7:08 AM

Why Trade Commodities with Religare!

  • Enables instant trading through the Internet via desktops, tablets and mobile phones
  • Enables better decision making with the help of personalized and actionable commodity research reports
  • Allows you to choose from several customized/multiple brokerage plans to suit your trading needs
  • Offers personal services through a dedicated team of relationship managers and dealers
Commodity Trading – Religare Online
Why trade in commodities?
One of the major advantages of future trading is that you can earn money without actually physically storing commodities
On the exchange, commodities are traded as future contracts. One of the major advantages of future trading is that you can earn money without actually physically storing (or buying and selling) commodities. Besides, the trading cost too is substantially low. Traders participate in commodities trading mainly because:
  • They do not need to pay the entire transaction amount for trading; only the margin amount is required
  • They can earn from short selling
 
Some of the other benefits of Online Commodities Trading are
  • The commodities listed on this market mainly include metals, energy and agricultural products. This diversity provides opportunities for investors, hedgers, traders, manufacturers, arbitragers, importers and exporters to earn money.
  • The prices of commodities changes purely on demand and supply. This makes it really easy to understand the movements and exploit opportunities.
  • Commodities are traded all over the world. Putting your money in this kind of investment helps you diversify your portfolio.
  • Unlike the Indian stock market, the Indian commodity market is open for 14 hours a day, covering timings of major commodity exchanges around the globe and giving you ample time to trade.
 
The fluctuation in the prices of commodities is caused by
  • Demand and supply
  • Currency movements
  • Crop sowing aspects
  • Economic forces
  • Weather
  • Crop arrival factors
 
These commodities can be traded by anyone using the platform offered by Religare.
Which commodities can I invest in?
Agricultural Commodities
  • Plantation Products
    Rubber
  • Spices
    Pepper, Red Chilli, Jeera, Turmeric, Cardamom, Coriander
  • Pulses
    Kapas, Cotton
  • Cereals
    Wheat, Barley, Maize
  • Oil and Oil Seeds
    Castor Seeds, Cotton Seed Oilcake, Soy Seeds, Mustard Seeds, Soya Been, Crude Palm Oil, Kapasia Khalli, Refined Soya Oil
  • Others
    Guar Seed, Gur, Sugar, Sugar M, Guargum, Mentha Oil, Gur, Patato (Agra), Potato (Tarkeshwar), Almond etc.
Non-Agricultural Commodities
  • Metals
    Aluminum, Aluminum Mini, Copper, Copper Mini, Iron Ore, Lead, Lead Mini, Mild Steel Ingot, Billets, Nickel, Tin, Zinc and Zinc Mini
  • Precious Metals (Bullions)
    Gold, Gold Guinea , Gold M, Gold Petal, Gold Petal (New Delhi), Platinum, Silver, Silver M and Silver Micro
    • Demand and supply
    • Currency movements
    • Crop sowing aspects
    • Economic forces
    • Weather
    • Crop arrival factors
     
    These commodities can be traded by anyone using the platform offered by Religare.

    Which commodities can I invest in?

    Agricultural Commodities
    • Plantation Products
      Rubber
    • Spices
      Pepper, Red Chilli, Jeera, Turmeric, Cardamom, Coriander
    • Pulses
      Kapas, Cotton
    • Cereals
      Wheat, Barley, Maize
    • Oil and Oil Seeds
      Castor Seeds, Cotton Seed Oilcake, Soy Seeds, Mustard Seeds, Soya Been, Crude Palm Oil, Kapasia Khalli, Refined Soya Oil
    • Others
      Guar Seed, Gur, Sugar, Sugar M, Guargum, Mentha Oil, Gur, Patato (Agra), Potato (Tarkeshwar), Almond etc.
    Non-Agricultural Commodities
    • Metals
      Aluminum, Aluminum Mini, Copper, Copper Mini, Iron Ore, Lead, Lead Mini, Mild Steel Ingot, Billets, Nickel, Tin, Zinc and Zinc Mini
    • Precious Metals (Bullions)
      Gold, Gold Guinea , Gold M, Gold Petal, Gold Petal (New Delhi), Platinum, Silver, Silver M and Silver Micro
    • Energy
      Crude Oil, Natural Gas, Thermal Coal, Gasoline, Heating Oil, Brent Crude Oil, Electricity Monthly and Weekly and ATF
    • Weather
      Carbon (CER) and Carbon (CFI)
    • Others
      Polyvinyl Chloride
     
    Energy
    Crude Oil, Natural Gas, Thermal Coal, Gasoline, Heating Oil, Brent Crude Oil, Electricity Monthly and Weekly and ATF
  • Weather
    Carbon (CER) and Carbon (CFI)
  • Others
    Polyvinyl Chloride
 
What are the platform’s features?
Religare not only offers a platform that enables effortless buying and selling, but also provides services and tools that help you make the most of the commodity market. Mentioned below are a few features of our platform
Choose the platform most suitable for you
Our multiple trading platforms can be accessed from anywhere, at any time. Apart from our online trading website that can be accessed from any device, we also provide trading applications for smart phones, desktop PCs and tablet devices to enable quick trading on-the-go. For heavy traders, our RIA platform offers streaming quotes to enable instant decision making.
Analyst research
We have a dedicated team of experts which provides extensive research calls and strategies on various commodity futures.
Smart Portfolio Tracker
Say goodbye to hours of calculation and track the performance of your investments by gaining up-to-the-minute movements of your holdings on our Smart Portfolio Tracker. You simply need to enter the required details like date, price and quantity purchased, and hand over the hassle of maintaining your portfolio to our tracker. You can access this tracker on our website from anywhere in the world and view the performance of your portfolio without re-entering any data.
FAQs
Most of your doubts got answered here.

What is a commodity?

A commodity is a product having commercial value that can be produced, bought, sold, and consumed. It is normally a basic raw unprocessed state but products derived from primary sector and structured products are also traded at commodity exchanges. In India, the list includes precious metals, ferrous and non-ferrous metals, spices, pulses, plantation crops, sugar, and other soft commodities.

What is a commodity exchange?

A commodity exchange is an association or a company or any other body corporate that provides a trading platform for commodities.

What are the different types of participants in commodity markets?

Broadly, the participants can be classifi ed as hedgers, arbitragers, and speculators. In other words, manufacturers, traders, farmers, exporters, and investors are all participating in this market.

How is trading done in the commodity exchanges?

Commodity exchanges are based on the online trading system. It is an order-driven, transparent trading platform, which is reachable to the various participants through the internet, VSAT, and leased line modes operated by members or subbrokers spread across the country.

What is a derivative contract?

A derivative is a product whose value is derived from the value of one or more underlying variable or asset in a contractual manner. The underlying asset can be equity, foreign exchange, commodity or any other asset. The price of derivative is driven by the spot price.

How are futures prices determined?

Futures prices evolve from the interaction of bids and offers emanating from all over the country which converge on the trading floor. The bid and offer prices are based on the expectations of prices on the maturity date.

How professionals predict prices in futures?

Two methods are generally used for predicting futures prices which are fundamental analysis and technical analysis. The fundamental analysis is concerned with basic supply and demand information, such as, weather patterns, carryover supplies, relevant policies of the Government and agricultural reports. Technical analysis includes analysis of movement of prices in the past. Many participants use fundamental analysis to determine the direction of the market, and technical analysis to time their entry and exit.

Is delivery mandatory in commodity futures contract trading?

The provision for delivery is made in the Byelaws of the Associations so as to ensure that the futures prices in commodities are in conformity with the underlying. Delivery is generally at the option of the sellers. However, provisions vary from Exchange to Exchange. Byelaws of some Associations give both the buyer and seller the right to demand/give delivery.

How is it possible to sell, when one doesn’t own commodity?

One doesn’t need to have the physical commodity or own a contract for the commodity to enter into a sale contract in futures market. It is simply agreeing to sell the physical commodity at a later date or selling short. It is possible to repurchase the contract before the maturity, thereby dispensing with delivery of goods.

What is long/short position?

Long position is a net bought position, whereas a short position is net sold position.

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