ExpertCrudeOil.com - An introduction on commodity derivatives market

ExpertCrudeOil.com - An introduction on commodity derivatives market

What are commodity derivatives ?

Like value equity futures & choices, they are futures and, alternatives on prospects, on an assortment of products from sugar to gold, edible oils to silver and rubber to crude oil .

How many exchanges offer commodity trading ?

MCX offers trading on metals and energy products . NCDEX is the nation's biggest farm futures exchange and ICEX offers trading on plantation products and diamonds . BSE and NSE also recently launched product portions to their trading platforms .

Is a separate trading account needed to trade?

Your current equity trading account might be utilized to trade product prospects gave your merchant is a part on the item trades . But Clients trading on NSE and BSE will, need to get enrolled with the likes of MCX and NCDEX . You can check with your dealer as controller Sebi has permitted financial services firms to merge their commodity broking subsidiaries with their parent organizations which offer equity trading.

Is there a risk in trading?

Truly there is.Without appropriate understanding those skilled at trading equity F&O ought not venture into this portion . All things considered, crude, gold and base metals would attract trading interest in the initial stages from retail equity clients. Hedgers will likewise be quick to cover their risk on agri counters like wheat, sugar and so on.

Who are the participants?

Mainly retail and wholesale commodity traders and a couple of corporate customers other than punters crosswise over resource classes. Sebi permits class 3 interchange speculation assets to exchange and MFs would motivate endorsement to exchange proper way . Also foreign organizations with exposure to Indian products not having presence in India have been permitted to exchange recently . Banks and FPIs are as yet not permitted though former can offer broking services to their customers to trade commodity derivatives.

Reference by- economictimes

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