Option trading in commodity in india

How to start with commodity trading in India?

 

option trading in commodity in india

A commodity market facilitates trading in various commodities. It may be a spot or a derivatives market. In spot market, commodities are bought and sold for immediate delivery, whereas in derivatives market, various financial instruments based on commodities are traded. FAQs on Commodity. Apr 22,  · In India, physical commodity trading is been practiced since the age of Chanakya. With the advent of technology, commodity futures are in hype when compared to physical trading. MCX and NCDEX are the two major exchanges where you can carry out commodity trading. The Forward Markets Commission (FMC) is the regulatory body for the commodity market in India. It is the equivalent of the Securities and Exchange Board of India (SEBI), which protects the interests of investors in securities. Commodity trading can be done with as low as Rs 5,


Is Commodity Options Trading Allowed In India


How to start with commodity trading in India? Abhishek January 12, How to start with commodity trading in India? This is the questions many people are asking. After equities, real estate and precious metals, people of India have started looking for investments in commodities. A majority of investors do not know how to start with commodity trading and investments.

What is commodity trading? Commodity can be defined either as raw products like corn, speciesoption trading in commodity in india, grains, metals or financial products like Gold, silver or currencies. The first thing that you require to start with investing and trading in commodities is the demat account. There are so many broking companies that are offering demat account. Many banks are also now offering demat account to their customers. Instead of banks I would suggest you to go with broking company as they provide better services than banks.

Activate the commodity trading account with your broker. The brokers may charge fees for this, while some brokers also option trading in commodity in india it for free. You can choose any of those 3 multi commodity trading exchange. There are following 3 commodity trading exchanges in India. What is the minimum amount required to start?

You can start with commodity trading with minimum of Option trading in commodity in india In the commodity trading you have to pay the margin money, which varies from product to product. For the one lot of silver 1 kg the margin money is Rs 9, If the current price of silver per kg is 60,then you only have to pay 9, per lot of silver for a future contract, option trading in commodity in india.

Is it necessary to take the delivery of commodity products? If you wish to take or make delivery of the physical product, you need to have the required warehouse receipts. You can switch between the options to settle the trading in cash or through delivery as many times as you wants till the last day of the expiry of the contract.

Do I have to pay sales tax? The sales tax is applicable only in case of trade resulting into delivery. If the trade is squared off no sales tax is applicable. Visited 4, time, 1 visit today Related Posts.

 

Option Trading In Commodity In India

 

option trading in commodity in india

 

Jul 31,  · What is options trading in commodity futures. For the seller return is restricted to premium buyers pay to buy an option that gives them the right to buy (call option) or right to sell (put). The seller has an obligation to buy from the put buyer or to sell to the call buyer. In India, options are European style, Author: Ram Sahgal. More From Money». The Securities and Exchange Board of India (Sebi) on Tuesday laid out rules for the introduction of commodity options. The regulator said it would allow only one commodity option per exchange on a pilot basis. Sebi said exchanges would have to submit proposals to it Author: Jayshree P. Upadhyay. Sep 19,  · At the same time commodities, with relatively lower volatility in its pricing compared to equity and bonds, provides an equally effective option in portfolio diversification. Commodity trading can be around products such as: Metals; Agricultural; Energy; Meat and Livestock; To start Commodity trading segment, all you need is: Choose a broker; Open an account5/5.