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Commodity Trading

Indian Portfolio is one of the leading clearing members for National Commodity & Derivative Exchange Ltd. (NCDEX) and Multi Commodity Exchange of India Ltd. (MCX), offering a range of products and services in the Commodity Exchange Business.

Trading in commodity futures is a very popular option for investors these days. It is a fast, furious and highly profitable option. Unfortunately, it is a volatile market and not even the best traders are equipped to make all the right decisions.

Indian Portfolio, on the other hand, offers the customer a little more than just brokerage service when it comes to futures trading. We provide you first hand information to help you make the best trades.

Since price fluctuations are frequent in the futures market, we give you the best advice so that you can make the best out of these fluctuations.

To give our customers confidence, in their trading decisions, we also offer a cushion against price risks. With this much and more, Indian Portfolio is able to boast of over 1000 happy customers.

At Indian Portfolio we try to partner you in your investments and provide you the best service at the best rates.

With great advice, prompt and efficient services, and a long record of success, Indian Portfolio is definitely a front-runner in the field of servicing commodities traders.

Understanding the Indian Commodities Market

Indian markets have recently thrown open a new avenue for retail investors and traders to participate: commodity derivatives. For those who want to diversify their portfolios beyond shares, bonds and real estate, commodities is one of the best options.

Commodities actually offer immense potential to become a separate asset class for market-savvy investors, arbitrageurs and speculators. Commodities are easy to understand and are based on the fundamentals of demand and supply. Retail investors should understand the risks and advantages of trading in commodities futures before taking a leap. Historically, prices in commodities futures have been less volatile compared with equity and bonds, thus providing an efficient portfolio diversification option.

Like any other market, the one for commodity futures plays a valuable role in information pooling and risk sharing. The market mediates between buyers and sellers of commodities thus making the underlying market more liquid.

Related FAQ

What is a commodity?
The dictionary defines commodities as 'Something useful that can be turned to commercial or other advantage'. Commodities refer to things which in day-to-day life, we simply take for granted like the wheat in our bread, the cotton in our clothes, the gold in our ornaments, the petrol in our cars and so on. However, what many don't know, is that these very ordinary items are also one of the finest investment avenues available.

The term 'commodity' includes all kinds of goods. FCRA defines 'goods' as 'every kind of movable property other than actionable claims, money and securities'. Futures' trading is organized in such goods or commodities as are permitted by the Central Government. At present, all goods and products of agricultural (including plantation), mineral and fossil origin is allowed for futures trading under the auspices of the commodity exchanges recognized under the FCRA. The national commodity exchanges have been recognized by the Central Government for organizing trading in all permissible commodities which include precious (gold and silver) and non-ferrous metals; cereals and pulses; raw jute and jute goods; sugar, gur, potatoes, coffee, rubber and spices, etc.

What are commodity futures?
Commodity Futures are contracts to buy specific quantity of a particular commodity at a future date. It is similar to the Index futures and Stock futures but the underlying happens to be commodities instead of Stocks and Indices