Tag: Commodities

Trading in MCX – Vital Tips for Trading Different Commodities in MCX

Trading in MCX – Vital Tips for Trading Different Commodities in MCX

Commodity exchange has been taking place since the 19th century but in those days the trading was done in certain basic commodities like sheep, corns, wheat and other cattle. With the passage of time and advancement of technology, commodity exchange became wider and several news commodities were included to be traded.
Commodity trading business is growing by leaps and bounds over the last few years in India. MCX (Multi Commodities Exchange) is the leading commodity exchange. The commodity of was established in 2003 and about 2/3 of commodity trading volume is contributed by trading in MCX. It is also the 5th largest exchange in the world in terms of the number of future contracts traded by the investors. The MCX market mainly comprises of base metals such as Zinc, Lead, Aluminum and precious metals including Gold and Silver. MCX commodity trading also includes trading of energy products such as natural gas and crude oil.

If you wish to invest in stock commodities, the following tips greatly help you how to understand the right techniques to invest in different commodities to earn maximum returns:

* Trading in Bullion Commodities:

Trading in bullion commodities involves trading of precious metals like platinum, palladium, gold and silver. Before investing in the bullion market it is important to analyze the existing macro-economic situation of the country including interest rates, growth rate in GDP, inflation and energy prices. You must invest only if these economic indicators are favorable for trading in MCX.

The silver market value is much smaller than gold, so if you wish to invest in Silver it advisable that you do a thorough study of the supply and demand in the market. Since metal is referred as poor man’s metal it guarantees better returns, however, the nifty market experts suggests that you must avoid buying the metal at spot price.

* Trading in Energy products:

Energy commodities trading have a great impact on both investors and non-investors. Even a slight change in the prices of the energy commodities can have a radical effect on the prices paid by the consumers.

* Trading in Base Metals:

Base metals are crucial for the growth of global economy. While trading in basic metal you must consider the following nifty trading tips:

* It is important that you understand about the metal before investing in it; you must study the metal profile.
* You must be abreast with the latest MCX exchange news and know about the factors that affects the price of the metal.

* It is advisable that you subscribe for services that offer live charts or real time figures about the demand and supply of the metal in the global market. This would help you make informed investment decision.

* To succeed in the commodity trading it is important you learn as much as you can about trading in MCX and develop bargaining skills and act on your intuition.

Known about how the market function and staying abreast with the latest news of the market is the key to success in trading in MCX, you need to constantly refer to commodity trading tips to maximize your profits.