Why trade in Commodity Market?

A commodity market facilitates trading in various commodities. The two types of markets in India are Spot market and Futures market. In Spot markets, the commodity trade happens immediately, in exchange for cash or other commodities. 

Diversifies your portfolio

Commodity prices do not move in tandem with the prices of other assets like stocks and bonds, providing an efficient tool for diversification.

Protects against inflation

The price of commodities rises in the phase of high inflation, protecting the value of your investments

Low Margin Trading

Low Margin on commodity trading provides investors with access to higher capital for investment, thus helping them to leverage their position in the market

Higher Returns

Commodity Trading have greater prospects of potentially providing high returns over time as one can invest in a diverse range of sectors and industries.

Invest in the world's most popular assets

A commodity market facilitates trading in various commodities. The two types of markets in India are Spot market and Futures market. In Spot markets, the commodity trade happens immediately, in exchange for cash or other commodities. In Futures markets, buyers and sellers trade a predetermined amount of a commodity at a specific price on a specific date in the future.

Metals

Precious metals like gold, silver, platinum, etc., and industrial metals like copper, aluminium, etc. are included in this category.
gold Gold – MCX
silver Silver – MCX

Energy

Energy trading includes crude oil and its products like gasoline, coal, natural gas, kerosene, diesel, wind power etc.
gold Crude Oil – MCX

Agriculture

This includes commodities like sugar, wheat, rice, lentils like channa, rajma, as well as spices like cumin, etc.

goldRMSEED – NCDEX
goldCotton – MCX
goldGuarGum – NCDEX
goldKokud – NCDEX

And many more

Mutual Fund

Invest in your long-term financial goals Invest in commission-free direct mutual funds

Invest in 0% commission direct mutual funds and Govt, corporate, and gold bonds on direct mutual funds platform.

Easy Monthly SIP

Choose from more than 5000 funds across the industry.

For the DIY investor in you

Invest the way you you want. Modify, pause, and resume SIPs instantly.

For the Transparency we provide

All investments through Hindustan Tradecom are in direct plans of mutual funds. No hidden commissions, no extra fees

We, at Hindustan Tradecom are always there to guide you in achieving your financial goals.

Why Mutual Funds?

AMCs you can invest in

What are Commodity Exchanges?

Just like the stock market, commodity trading also requires a dedicated market where buyers and sellers can trade their commodities. A commodity exchange is a market space where people can buy and sell commodities. There are four national commodity exchanges for commodity trading in India:

Multi Commodity Exchange also known as MCX

Indian Commodity Exchange or ICEX

National Multi Commodity Exchange or shortly referred to as NMCE

National Commodity and Derivatives Exchange or NCDEX

Who can trade?

Retail Investor

Retail Investor to hedge their portfolio risk

Industrialists

Industrialists to hedge their raw material

Trader/Speculator

Trader/Speculator

Importer/exporter

Importer/exporter

Commodity Trader

Physical Commodity Trader

How to do Commodity Trading?

Commodities can be bought and sold in the market, similar to shares and equities. Investors need to first identify the commodity that they wish to trade. They can then buy this commodity at a low price and predict its rate of appreciation in the future. When the commodity’s value reaches the appreciated price, they sell it to earn a profit.

Investors also trade with a future contract wherein they agree to buy or sell a pre-determined amount of a commodity at a fixed price in the future. This is useful to hedge unwanted risks in the future. Commodity exchanges function from Monday to Friday between 10:00 a.m. and 11.30 p.m. or 11.55 p.m. IST, as per the U.S daylight saving time.

Why Open Commodity Account with us?

Guidance

Guidance for every investment decision

Paperless

100% Instant Paperless Account Opening

Advanced tools

Advanced Trading tools

Superior Offering

Low-Cost Superior Offering

Mobile App

All-in-one mobile app for stock, commodity, and Mutual fund

NCDEX and MCX

Registered with NCDEX and MCX

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Frequently Asked Questions

A commodity derivative market is the platform for trading of commodities that fall under the four segments of agricultural commodities, bullion and gems, metallic commodities and energy commodities. Any commodities derivative contract, therefore, has commodities as its prime asset. Based on the exchange of derivative contract based on commodities, a commodity derivative market is a prime source of market variations.

Products used for commerce that are traded on a separate, authorized commodities exchange. Commodities include agricultural products and natural resources such as timber, oil and metals. Commodities are the basis for futures contracts traded on these exchanges. It is classified as follows:

    • Agricultural Commodity (Agro)

An Agricultural Commodity includes food grains, oilseeds complex, sugar, plantation crops, horticulture crops etc.

    • Non-Agricultural Commodity

Non-Agro commodity includes base metals, precious metals etc.

Investing in commodities helps diversify your overall investment portfolio, which means that the allotment of funds is broadened. This helps create a balanced portfolio and also helps mitigate the chances of any unwanted risk, generally associated with equity investment. Moreover, investment in commodities acts a cushion against future inflation as the commodity trade generally increases in volume during times of high inflation. Also, commodities constitute an economically cheap category of investment vehicles when compared to other future based alternatives.

For trading in commodities, you need a Trading account. A Trading account can be opened with a certified brokerage firm. This trading account serves as the exchange place for trading in the commodity market. It must be noted, however, that the broker that you choose must be registered with commodity exchanges. The notable commodity trading exchanges in India are MCX and NCDEX. The first step, however, is to understand and list your goals and the type of market that you wish to deal with. There are a variety of options for trading in commodities and you should choose as per your financial consultation and your risk appetite.

Just as SEBI regulates the stock market, Forward Markets Commission (FMC) along with SEBI regulates the commodity market

Monday to Friday
Trading on exchange platform takes place on all days of the week (except Saturdays, Sundays and holidays declared by the Exchange) Market timings are as follows: