Post on 10-Jun-2015
description
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Trade Smart Online
Zero
Brokerage!
Commodity Trading
Basics
by
Trade Smart Online
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Visit:
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A physical or virtual marketplace for buying, selling
and trading raw or primary products.
Major Commodities
Market worldwide
Primary
Commodities
Traded
Two types:
HardSoft
Gold, Rubber, Oil,
Gas
Agricultural
Products & Livestock
Commodity Marketplace
50
100
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Why Commodity Trading?
Lets say you want to buy gold because you
believe that the price of gold will rise.
What will you do?
You will probably buy gold bars, store them, wait for
the price to go up and then sell them.
Problems: You have to be sure whether the Gold is
pure or not, you will need a safe place to store it thus
require security and other hassles.
Solution: Just buy Gold Futures from the Commodities
Exchange.
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1 gm of Gold
Futures Contract
Worth: INR 3000
You don't have to pay the entire
amount, just a fixed
percentage of the cost. This is
known as the margin.
How it Works?
Trade Smart Online
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How it Works? 1 gm of Gold
Futures Contract
Worth: INR 3000The margin for gold set by the Exchange is
5%. So you only end up paying Rs 150. The
low margin means that you can buy futures
representing a large amount
of gold by paying only a fraction of the
price.
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How it Works? 1 gm of Gold
Futures Contract
Worth: INR 3000
The next day, the price of gold rose to Rs
3050 per 1 gm.
Rs.50 will be credited to your account.
If the following day, the price dips to Rs
2950.
Rs.50 will get debited from your account.
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Things to Remember!
Stock Vs Commodities
--As margins are much lower than in stock
futures.
Even Brokerage charged for Commodities is low. Well here at Trade Smart Online we offer
Zero Brokerage Trading!Thus, Commodities Futures are Investors Paradise.
No need to study complicated Financial
statements----all you have to do is follow the
Supply and Demand position of the
commodities you trade in very closely!
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Products Listed
Bullion (Gold, Silver & platinum)
Energy (Crude oil, Natural gas, et al)
Base Metal (Aluminum, Copper, Zinc,
Lead, et al)
Agro Product (Turmeric, Pepper,
Cardamom, et al)
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Market Timings
10 A.M to 5 P.M - (Agro Commodities)
10 A.M to 11.30 P.M - (International
Commodities)
The market is Driven by Demand and
Supply
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How to find Demand & Supply?
Supply
&
Demand
Technical
AnalysisSymptoms
Human
PsychologyFundamentals
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How to find Demand & Supply?
The study of supply and
demand is also known
as “Fundamental
Analysis".
Fundamental information;
Political events;
Natural disasters and
Psychological factors
will quickly show up in some
form of price movement.
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Ex. Due to the current Iraq crisis, Crude
Oil Prices has risen
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How to do Online Trading?
25%
25%25%
25%
Investments
Fundamentals
Technical Analysis
Market Knowledge
You need to Balance:
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Where to Begin?
Trading is vast. But do not get Confused.
Trade Smart Online is always there to help you.
Visit: http://tradesmartonline.in/ or
Call: 022 42878000
for a Zero Brokerage and smooth Trading experience online!
Like us and Share this content in
https://facebook.com/tradesmartonline
Follow us on:
https://twitter.com/tradesmartonlin
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Conclusion
“Having trading discipline is the
beginning; keeping discipline is the
progress; staying discipline is the
success”.
--- #TradeSmart
Thanking You!
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Reference
Beginners Guide- Commodity Trading
Terms- Investopedia
Articles- Investopedia
http://bit.ly/1qvJTa3
http://bit.ly/1ivAQ98
http://bit.ly/1pNeyjQ Zero
Brokerage!