Commodity trading is an important part of the financial market that provides investors the alternatives to rule out market volatility to earn better profits.
Indian market offers wide range of commodities that are classified as precious, base metal, energy, and agriculture-based commodities. The trade timings for commodity trading India are from Monday to Friday between IST 10 am to 11:30 pm.
Major advantages of commodity trading in India
Some of the major advantages of opting for the commodity trading in India are that these are highly leveraged instruments. As a result, these have the advantage of opting for bigger benefits bets.
These markets are extremely liquid and hence, entry and exit are relatively easy. These further have a potential to deliver huge profits if the person has the best experience in handling the commodity Trading in India.
On the other hand, these platforms are highly volatile and therefore involve a high risk. Moreover, the gains and losses are amplified by leverage. So, you either win big or lose big.
As a result, investors looking for commodity trading opportunities will get the updates in numerous ways. However, instead of opting for the same, opt for a reliable service provider for commodity trading India. The timely detection of the same means that you can spot major advantages of the same.
Is delivery of goods mandatory?
In many cases and especially agriculture products like spices, cotton and spices, guar, etc. – The actual delivery of goods is a compulsory factor. Also, you can square off the actual position before delivery.
Similarly, the products like gold, silver and precious metals are non-delivery based.
Major taxes associated with commodity trading
Traders need to pay some taxes for commodity trading India.This is called as the Commodity Transaction Tax or CTT. In this sector, GST is paid based on brokerage on the actual delivery, exchange rates and warehouse charges.
Regulatory bodies that control the final trade
The Securities and Exchange Board of India or SEBI regulates trading in the market. The Commodity Derivatives Market Regulation Department or CDMRD investigates the everyday operations of the same.
The SEBI has permitted both mutual funds and PMS to trade in these market segments.
Selecting the right commodity brokerage services
Choosing the right commodity partner and brokerage services is vital to achieve lucrative gains.