How to trade in commodity market?

[richard branson]

There are Several People in the world who are interested In commodity trading and want to maximize their profit with in short time. Such People fear to invest in commodity because lack of knowledge in trading. They fear to loss their hard earned money.

Below are some commodity tips for the beginners to start trading:

If you want to start trading then you should be 18+ having PAN card.
After that apply for demat account to any reputed broker. When the account in ready start trading with small lots. This way you can know how market works. Also read about the commodity market from ebook & other sources like from Internet. You can also start trading with the help of trading expert who guides you to maximize your profit from trading.

 

[Yash Raj]

We don’t really need to change anything much, as Currency, Commodities, Indices or anything else is traded with same principles, it’s just minor stuff that we need to change, but those are far from anything too difficult, so all we should do is learn to plan well and create large money management, it is going to help us on everything. I only prefer to trade on Currency, but I have all option open with OctaFX broker since they have over 50 currency pairs plus currency and all the stuff, so that really makes it easy for me to decide things and most important factor is their daily market update, I get it from this lovely broker and that too for free, so I can work really easily with that.

 

[Rocky]

I agree with Yash, it is all same way whatever we do, but again if we have lower capital in hand then it’s not a wise deal to be doing commodity trading. I am currently working with Nova FX broker where I am required to pay just 1.5 pips spread, it comes very handy and allows me to be successful in difficult times especially with Currency pairs while I have never tried doing commodities due to high spreads and huge investment requirements.

 

[Dmitriy Ushakov]

Here is an example of how a commodity exchange works. Imagine that today you are buying a one-year subscription to a magazine. This magazine subscription is very similar to a futures contract: the futures contract and the subscription will guarantee you a certain price for the commodity in the future. Think about it: if suddenly one month after the subscription market price for the same subscription to the same magazine will increase, the editors will have no right to demand you with extra money because the price is already determined, and changing conditions will be a breach of contract. Thus, you will have a product (magazine subscription), the market value is higher than yours. (From a speculative point of view, you could sell the subscription at a price close to market and earn.)

 

[Yash Raj]

It is just like we do currency trading or such, we just need knowledge and experience, but one little addition is extra money, as commodity is far more expensive than currency trading. I am lucky to be with OctaFX broker where they have all stuff from currency to commodities to indices, it is all there and that too with having great facilities like rebate program where I get 50% back on all trading orders and that’s even for the losing one’s too.

 

[Manoj David]

We need to be very careful and on the plate in order to gain from trading on commodities, it needs to be done with ultra-confidence. I do it all thanks to Alpari with their wide range of features and facilities with having over 80 instruments to pick from including currency pairs, commodities, indices and more. The conditions too are exception with zero spreads, high leverage up to 1:1000 and then there is marvelous deposit bonus up to 99% and there is even fundamental vishleshan facility, so just superb to have so much with one company.