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Why trade in Commodities?
Big market - diverse opportunities
Because the listed commodities include Bullion, Metals, Energy and Agri products,
trading in commodities provides a lucrative market opportunity for investors, arbitragers,
hedgers, traders, manufacturers, exporters and importers.
Huge potential !
Commodity Exchanges witness a sizeable daily turnover, unlocking a huge potential
for the participants to earn profits.
Exploitable fundamentals
Commodity trading operates on the simple principle that “Price is a function of
Demand and Supply”. This makes things really easy to understand and exploit.
Portfolio diversifier
Commodity Futures derive their prices from the underlying commodity and commodity
prices cannot become zero. Commodity has a global presence and hence, it's a good
portfolio diversifier.
Extended trading hours
Indian commodity market operates for 14 hours a day covering timings of all major
international commodity exchanges, thus giving traders ample time to earn profits.
Option of trading in Demat form
Now, one does not need to hold commodities physically in warehouses. Now-a-days
depositories offer to hold your commodities in a Demat form.
Advantage of Commodity Futures Trading
Futures trading eases the hassles and costs of settlements and storage for traders
who do not want custody. The most lucrative element of futures trading is that it
allows investors to participate and trade at nominal costs.
You no longer need to put the whole amount for trading; only the margin is required.
Traders can short sell and profit from falling prices.
Highly process driven, diligent approach
Powerful Research & Analytics
One of the “best-in-class” dealing rooms
How will we make trading easier and better?
Personal Assistance
Dedicated Relationship Managers
Dedicated Dealers for facilitating trading and post trade needs
Our Value Adds
- Access to all your accounts through your unique Customer Relationship Number (CRN)
- Access your ledger balances and account information over internet and at the branch
Help Desk
- Browser and application based platforms can also be made available for commodity
trading
- SMS services for research advice and to keep you abreast with your investments
- Regular News and Updates on market
Spot Exchange
Trading on Spot Exchange platform is the trading of an actual physical commodity
at the current market price. Current delivery price of a commodity traded in the
spot market, comply with the price in which goods are sold for cash and delivered
immediately through the spot exchange platform. This platform provides customized
services relating to storage, procurement and disposal of commodities through online
trading system.
Indian Spot Exchanges
National Spot Exchange Ltd.( NSEL)
What the Spot Exchanges can provide?
Enable better price realization for the farmers, Traders & other participants.
Enable lower cost of purchase for buyers.
Involve a larger number of participants from around the country – enabling both
the farmers and the end users to reach more people – thus effecting a better bargain
for both.
Larger number of participants would also ensure higher liquidity
Removing/minimizing the chain of intermediaries, which are mainly responsible for
the price aberration. This can have an indirect effect on the reduction in the price
of the commodity that the ultimate consumers pay.
Reducing/eliminating the dependency of farmers on middlemen for selling their product.
Evolving a transparent and efficient system of trading through electronic system
leading to fair price discovery – an efficient system would erase any sort of manipulation.
Making the entire operation fast and easy for both farmers and buyers.
How to Trade?
- In simple words, one can buy / sell the Commodity from the Spot platform.
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You must have a trading account with Us.
- You must have a valid sales-tax registration but in case the client do not have
a sales-tax number; one can take the help of Our Platform.
The process
- Farmer/Seller bring his goods to the warehouse
- The stocks are assayed – Quality checked and the goods weighed
- If the quality is validated, the warehouse receipt is issued
- The seller goes to the designated Spot Exchange member with the receipt and a limit
is opened for the quantity to be traded on the Exchange
- Once the transactions are completed at the mutually agreed price between buyer and
seller, the delivery and settlement aspects are done as per rules of the Exchanges.
Benefit
- Access to larger number of buyers throughout the country: thus increasing not only
his reach but also his bargaining power. The farmer won’t be at the mercy of a few
influential traders in the locality
- Accurate, transparent, online information of prices: without risks of manipulation
- Increased trade: The Spot Exchanges will ensure assurance of a standard quality
for the buyer. It will help generate interest for big players like Corporate, exporters,
who would be interested more in the quality aspects. Delivery assurance to buyers
can attract bigger players into the market as there will be no counter party risk
in the trading system. Possibility of huge volumes of trade can also be a positive
factor for the large players
- Better storage and handling system: will cut damage costs especially for perishable
items
- Arbitrage opportunities: as farmers can benefit from trades in the same commodity
on both the spot and the futures market
- Improved Technology: can help the farmer to expect that the deals would be completed
and he will get his payments fast
Some FAQs
Who Can be a participant?
- Trader
- User Industry
- Retail Chains
- Super Markets
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SMEs
What kind of commodities are available for trading?
- Agri Commodities: Agri commodity includes Chana, Guarseed, Urad, Lemon Tur and many
more commodities
- Bullions: Bullion includes gold and silver
Trading Criteria?
- Buyer: Has to pay Trading margin just for intraday trading. For delivery full payment
for the commodity wants to take delivery.
- Seller: Seller has to deposit commodity in advance (Short selling is not allowed),
need not to pay any margin for selling.
Currency Futures
Now, experience the excitement of the world's most traded financial instrument with
Religare.
Benefits of Currency Futures
- High Liquidity
- Extended trading hours - 9 am to 5 pm
- Opportunities to reap benefits owing to a highly dynamic market
- Small lot size of only US $1000 with low exchange specified margins
Currency Futures is best suited for -
- SMEs / Individuals involved in Imports/Exports
- Corporate/ Institutions involved in Imports/Exports and anybody else who has foreign
currency exposure
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