How to Ensure Good Returns in Online Commodity Trading With Wisdom Capital!
The sphere of online trading is merely not limited only to financial instruments like stocks, mutual funds and bonds with respect to handsome return on one’s investment. But substances like metals and food grains are also traded in a stock market and are also known to be commodities. Trading in commodities is mostly done through future contracts.
The commodities, consisting of energies (crude oil, gasoline, natural gas), metals (gold, platinum, silver) and agricultural product (corn, rice, wheat, cotton, coffee and sugar) are bought & offered for a financial income with better commodity suggestions and hence is called commodity trading.
Commodity trading market is the platform for providing the trading of commodities. You can easily trade in the online commodity market with the assistance of the online brokerage firms. Additionally, online trading in commodities will provide you a sense of self-determination. With the help of online commodity trading, you can easily and effectively trade in the online commodity market.
Commodities Traded in India Online
Below are the list of commodities that are traded in Indian commoditiy exchange.
Consisted of crude oil, heating oil, natural gas and gasoline
Consisted of gold, silver, platinum and copper
Livestock and Meat Commodities
Consisted of lean hogs, pork bellies, live cattle and feeder cattle
Consisted of corn, soybeans, wheat, rice, cocoa, coffee, cotton and sugar
Commodity Exchanges in India
Commodity trading in India mostly done through different exchanges by the online commodity trading firms. The most prominent exchanges in India where commodity trading occur:-
- Multi Commodity Exchange (MCX) primarily deals in metals like gold, silver, copper, coal, gas, etc.
- National Commodity & Derivative Exchange (NCDEX) allows trading in grains like wheat, rice, cotton, sugar, etc.
- National Multi Commodity Exchange of India (NMCE) deals in trading spices.
Benefit and Advantages Offered by Online Commodity Trading
The biggest advantage of trading in commodities through Future contracts is ease of entering and exiting this type of investment. What exactly a trader is required to do is filling the margin requirements and executing the trade. Rest leave upon the exchange to check through your transaction from there.
Apart from the ease of doing trades, the other benefits offered by Wisdom Capital as an online commodity trading facilitator include:-
Diversification of Portfolio:
Commodities helps to diversify a portfolio. The return on commodity trading have not impact upon its performance, whatever the price bonds and equities are faring in the market. It has been seen that returns on commodity keeps on rising despite the fall in prices of primary asset class including bonds and stocks. For example, the price of gold keep on rising despite the fall in price of stocks in equity market.
Protection against Inflation:
Inflation makes an adverse impact upon commodity trading in comparison to financial assets like stock and bonds. With the deprecation in the cost of currency during inflation the real value of financial assets get eroded. However, the cost of commodities remain constant even during the period of high inflation.
Hedging Against Risk:
The biggest benefit offered by commodities trading include is hedging against risk, primarily, event risk. War like situation along with equities impact commodities, negatively. So, commodities trading acts as potential hedge against some event risks and easily meet out fluctuations in price of commodities.
The liquidity offered by commodities futures is very high and they are quite easier to buy and sell. An investor can easily liquidate his position whenever he feels like quitting it.
Trading Even on Lower Margin
The margin required for future contracts in commodities happen to be far lower required by a broker. The margin, thus, there happen to around 5–10% of the total value of the contract and is lesser than the margin required by other asset classes. Thus, a trader can take large positions even with a lesser capital in commodities trading.
Commodity markets are volatile. They can experience huge swings in prices. For example, war in a major oil-producing country like Iraq can cause oil prices to shoot up. Smart investors can take advantage of these price swings to make gains. Well-planned commodity investments can provide higher returns than investments in other assets.
Easy Trading Facility:
For commodity buying and selling, whether, on smartphone or from computer, doing it online is the easiest way to carry out transaction with an ease. What a trader required to follow is opening a trading account and can begin it from the comfort of home.
Preserve Speculations at Fingertips:
At the same time as doing buying and selling you will no longer most effective be capable of seeing the contemporary standings of commodities but can also be capable of reading via the speculations regarding them and how experts experience about their destiny trends. This allows you make a far higher and well-informed selection, thereby elevating your chances of creating an enormous amount of income.
Automatic Commodity Buying and Selling:
Consider yourself lacking out on excessively valued earnings just due to the fact you could not order for it to be bought simply in time. With online commodity buying and selling, you could now put your commodities on sale over a selected price using an automatic commodity buying and selling system.
To make effective and money-making commodity trading, investors should have proper knowledge about the trading market. To get more and best information and techniques to get better profit in the market, investors can get the assistance of the online commodity experts firms like Wisdom Capital.
In order to do online trading in commodity with Wisdom Capital feel free to contact us at:- Toll Free : 1800-123-9343