Understanding Commodity Trading
Commodity trading is an essential part of the financial market that provides investors the opportunity to rule out market volatility and make profits. Indian market offers a wide variety of commodities for trading, which are classified as precious metal, base metal, energy and agro-based commodities. More often online commodity trading is traded in futures, where future contracts are traded and not commodities itself.
Commodities with Karvy
Commodity trading in India is a common tool used by investors to hedge price, take speculative positions and explore arbitrage opportunity. But trading commodities with karvy provides
User friendly mobile application, desktop application and browser based trading tool facilitates easy online commodity trading.
Regular reports and market insights from our expert researchers, enabling you to take the most informed and profit making decisions.
Access to multiple commodity exchanges
Karvy holds membership of the leading commodity exchanges like Multi Commodity Exchange of India (MCX), National Commodities and Derivatives Exchange (NCDEX) National Multi-Commodity Exchange of India (NMCE) and Ace Commodity Exchange (ACE)
Flexibility of trading
We facilitate both physical and future trading in commodities as well.
We provide end to end support for procurement of commodities with complete quality and quantity check of the commodities.
One of the major benefits of commodity trading is that it is traded in form of commodity future contracts, in which one can make profit without actual possession of the commodity. Few other benefits are:
Potential for higher returns
Commodity future trading is done on margins, thus investors get greater leverage and have the opportunity to get higher returns.
Some commodities are fundamentally global commodities and their prices are highly correlated across the markets in several countries, leaving less room for manipulations.
Returns generated in commodity market are independent of the price fluctuations of the equity market or debt market and thus creating a good investment diversification.
Investment in commodity future is an inflation hedging tool, as commodity prices establish the price levels and protect against inflation.