What is Commodity Trading In India?

Commodity Trading In India is a high-risk, high-return transaction. Principals are not guaranteed commodity futures contracts. It is a transaction that may result in a loss more than the deposited funds. The peculiarity of this transaction is that, depending on the trends in commodity prices, the deposited funds can generate profits that are incomparable to deposits and savings. 

Still, on the other hand, losses can be similarly high. There is a transaction. Therefore, please make transactions with sufficient funds, excluding the funds necessary for living. Also, even after the marketing starts, always pay attention so that even if you lose it, it will not affect your life.

Commodity futures trading is a time-limited transaction

Commodity Trading In India is one of the means of asset management. Still, unlike stock trading and deposits and savings, it is a transaction based on the buying and selling of commodities, so when a specific deadline comes, you may receive the goods that are the target of the transaction. 

You have to pay the price. Customers who use it for asset management cannot usually handle goods, so they must settle by resale or repurchase before the deadline. You can’t hold a stock forever like a stock transaction or keep it in a bank as a deposit. Customers should be aware of this in advance and participate in the transaction. Some products do not have a contract month.

Transactions should be made at the customer’s own risk and discretion.

The opinions of sales representatives are for reference only. Since it is a customer’s transaction, please be sure to make a transaction at your discretion. As a result, in the unlikely event of a loss, the customer will be responsible for it. 

In addition, it is prohibited by law for customers to leave transactions to sales representatives. If the sales representative says, “Please leave it to me”, or if you do not follow the customer’s instructions, be sure to get in touch with the following consultation desk immediately.

Always check the status of transactions.

Please be sure to read the documents such as “Buying and Selling Report and Trading Statement” and “Balance Collation Notice”. If you have any questions or concerns, don’t hesitate to contact us immediately below. Also, save them all together so that you do not lose them. You can also check the product’s price on the exchange website.

Please decide in advance what to do if there is a margin shortage.

Whether to stop or continue trading when margin shortage occurs, if you want to continue, pay attention to the extent of the surplus funds and how much (how much) you want to continue, and decide on an approximate policy in advance.

Being able to “contract for difference” means …

Commodity Trading In India does not necessarily require the delivery of commodities. It is the price at the time of buying or selling and the current price by “selling (resale)” for the “buy” transaction and “buying (repurchase)” for the “sell” transaction before the delivery. This is because the difference from the price can be settled, and the transaction can be closed. This is called “contract for difference”.

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Commodity Trading In India Is “Margin Trading.”

Deposit and trade “margin.”

  • In stock trading, the entire trading value is received and paid. Still, about 5 to 10% of the total “margin” is deposited as collateral for trading, and trading is started in commodity futures trading. 
  • This efficiency of investment funds is a merit of trading commodity futures, but since it trades 10 to 70 times the margin, it can be expected to make a big profit, but it may suffer the same loss. 

Aggressive investment means

In commodity futures trading, you can use the rise or fall of the “futures price” to “make a buy contract when it is cheap and resell it when it is high and settle the difference”, or “make a sell contract when it is high and repurchase it when it is cheap”. It is also an aggressive investment method that seeks to profit by “settlement of difference”.

Trading with surplus funds

While commodity futures trading can generate large profits in a short period, if price movements are not predicted, there is a possibility (risk) that the loss will exceed the initial investment amount. Therefore, transactions should be carried out with surplus funds, not living funds. Also, even if you have surplus funds, it is essential not to use them as a margin from the beginning of the transaction but to reserve a part if additional funds are needed.

Time to review information is essential.

Commodity Trading In India can fluctuate significantly during the day, resulting in significant gains and losses compared to the deposited margin. Therefore, it is essential to consider information, such as confirming the facts, rather than trading based on rumors or unconfirmed information. Then, please make a “sell” or “buy” decision after you are satisfied with it.

Decide on a transaction policy.

  • The market price does not always move according to your expectations, and even a slight price movement will significantly affect your profit and loss. It is essential to set your trading policy (investment limit, profit target, loss limit, etc.) before you start trading, and always keep in mind the margin of funds. You can also instruct the sales representative about how much the price will be settled or enter the conditions for ordering online.
  • Commodity Trading In India is a high-risk, high-return transaction. Principals are not guaranteed commodity futures contracts. It is a transaction that may result in a loss more than the deposited funds. The peculiarity of this transaction is that, depending on the trends in commodity prices, the deposited funds can generate profits that are incomparable to deposits and savings. 
  • Still, on the other hand, losses can be similarly high. There is a transaction. Therefore, please make transactions with sufficient funds, excluding the funds necessary for living. Also, even after the marketing starts, always pay attention so that even if you lose it, it will not affect your life.

Commodity futures trading is a time-limited transaction

  • Commodity Trading In India is one of the means of asset management. Still, unlike stock trading and deposits and savings, it is a transaction based on the buying and selling of commodities, so when a specific deadline comes, you may receive the goods that are the target of the transaction. 
  • You have to pay the price. Customers who use it for asset management cannot usually handle goods, so they must settle by resale or repurchase before the deadline. You can’t hold a stock forever like a stock transaction or keep it in a bank as a deposit. Customers should be aware of this in advance and participate in the transaction. Some products do not have a contract month.

Transactions should be made at the customer’s own risk and discretion.

  • The opinions of sales representatives are for reference only. Since it is a customer’s transaction, please be sure to make a transaction at your discretion. As a result, in the unlikely event of a loss, the customer will be responsible for it. 
  • In addition, it is prohibited by law for customers to leave transactions to sales representatives. If the sales representative says, “Please leave it to me”, or if you do not follow the customer’s instructions, be sure to get in touch with the following consultation desk immediately.

Always check the status of transactions.

Please be sure to read the documents such as “Buying and Selling Report and Trading Statement” and “Balance Collation Notice”. If you have any questions or concerns, don’t hesitate to contact us immediately below. Also, save them all together so that you do not lose them. You can also check the product’s price on the exchange website.

Please decide in advance what to do if there is a margin shortage.

Whether to stop or continue trading when margin shortage occurs, if you want to continue, pay attention to the extent of the surplus funds and how much (how much) you want to continue, and decide on an approximate policy in advance.

Being able to “contract for difference” means …

Commodity Trading In India does not necessarily require the delivery of commodities. It is the price at the time of buying or selling and the current price by “selling (resale)” for the “buy” transaction and “buying (repurchase)” for the “sell” transaction before the delivery. This is because the difference from the price can be settled, and the transaction can be closed. This is called “contract for difference”.

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