High risk appetite individuals can utilize the commodity trading terminal provided by our channel partner, India Infoline Securities Pvt Ltd, at our investment center or by having your own online trading software on your personal Computer.You can trade in various metals such as gold, silver, aluminium, copper and zinc etc. and as well as agro commodities like sugar, pulses, guar gum etc on commodity exchange like MCX and NCDEX on nominal commission. Commodity trading is an excellent tool for makers of jewellery and manufacturers of non ferrous metal based products for hedging against the fluctuating cost of their raw materials.
Forward Contact on Commodity : A forward contract is an agreement to buy or sell an asset on a specified date for a specified price. One of the parties to the contract assumes a long position and agrees to buy the underlined asset on a certain specified future date for a certain specified price. The other party assumes a short position and agrees to sell the asset on the same date for the same price.
A commodity futures contract is an agreement between two parties to buy or sell a specified quantity and quality of commodity at a certain time in future at a certain price agreed at the time of entering into the contract on the commodity futures exchange.
Advantages of Commodity Futures
HEDGING : May be used for risk management by risk mitigation
SPECULATION : Provides an Opportunity of taking advantage of favorable price movements
ARBITRAGE : Provides an Opportunity of making risk free profits by trading on the discrepancies between two markets.
LEVERAGE : Pay low margin to enjoy large exposure
LIQUIDITY : Provides the ease of entering and exiting the market as and when desired.