Get Even More Visitors To Your Blog, Upgrade To A Business Listing >>

Is MCX commodity in trading a good option as a secondary source of income?

Yes !!! off course MCX is an organized exchange that facilitate future trading in different Commodities for additional investment opportunity as well that can be utilized for the additional income source according to individual risk appetite.

As we know that commodities are the raw or primary product that could be satisfied the need like Soybean, gold silver and base metals. As every person want to generate a secondary sources of income. In india Commodity Market is a market where different commodities are traded on its derivative contract. Derivative are the contract whose value is derived from the underlying asset or the contract where delivery of security or commodity held on specific future date. The main purpose of commodity derivative is also to reduce risk of future price uncertainty and provide the industry knowledge as well investment opportunity to a general investor.

Like a stock market NSE provide a platform to trade in different shares, for commodities MCX and NCDEX are the Exchange in which trading on commodity derivative contract held.

MCX (Multi Commodity Exchange ) mainly known for the trading of

Bullions metals i.e. Gold, Silver and also platinum

Base Metals (Zinc, Aluminium Lead, Nickel, Coper, )

Energy(Crude Oil and Natural Gas)

And NCDEX(National commodity derivative Exchange) manily known for trading in Derivative contract of agricultural Produced like Refsoyaoil, Rmseed,Guarseed, Chana, Dhaniya .

As all this commodities are traded on its future contract that has a specific expiry date of that contract and each individual can buy or sell a specific quantity of a individual commodity.

Different Commodities has different lot size Like

Gold -100, Silver-30, Zinc Aluminium and Lead has lot size of 5000 and Coper-1000 , Nickel-250, Crude Oil- 100 and Natural Gas has lot size of 1250.

To purchase a single lot of a commodity, you doesn’t have to pay full amount you just have pay a margin amount that is decided by the Exchange.

Like if you want to buy 1 lot of Zinc September Contract and its CMP is 153.20 than

153.20*5000= 766000 * 4–8% would be the investment.

For a beginner a proper knowledge about the market is most important as Bullion, Base Metals and Energy are the international commodities

Thus there are so many factors Like Import and Export, Demand of a Commodity in International Market, Value of Currency and off course the technical analysis play a vital role for investment according to his or her risk. for beginner it is better to work with proper Invest adviser guidance.



This post first appeared on After Italy Verdict Gold Trades Higher On Safe-haven Demands; Silver Down, please read the originial post: here

Share the post

Is MCX commodity in trading a good option as a secondary source of income?

×

Subscribe to After Italy Verdict Gold Trades Higher On Safe-haven Demands; Silver Down

Get updates delivered right to your inbox!

Thank you for your subscription

×