COMMODITY

COMMODITY

PRODUCTS AND SERVICES


COMMODITIES TRADES

Though primarily concentrating on metal commodities and energy commodities, the Multi Commodity Exchange hosts trading in a wide range of products, many of them newer commodities reflective of India’s growing economic power. Commodity trading in India is helping to power the transformation of the country into a multi-faceted modern economy, and the list of products traded at MCX reflects this. The commodities traded on the Multi Commodity Exchange are:


AGRICULTURAL COMMODITIES

Almond, Barley, Cardamom, Chana, Coriander, Corn, Guar Seed, Kapas, Kapasia Khalli, Melted Menthol Flakes, Mentha Oil, Palm Oil, Potatoes, Rubber, Soybeans, Soya Oil, Turmeric, Wheat.


ENERGY COMMODITIES

Brent Crude Oil, Natural Gas, Crude Oil.


ENVIRONMENTAL COMMODITIES

Industrial Metal Commodities: Aluminium, Copper, Lead, Mild Steel, Nickel, Zinc.


PRECIOUS METAL COMMODITIES

Gold & Silver



MARKET KNOWLEDGE CENTRE (FAQ)


What is the minimum investment needed?

You can have an amount as low as Rs 10,000 The margins range from 5-10 per cent of the value of the commodity contract. You can start your trading at Rs.10,000 with Thainadu Group.

For trading in bullion, that is, gold and silver, the minimum amount required is Rs 650 and Rs 950 for on the current price of approximately Rs 65,00 for gold for one trading unit (10 gm) and about Rs 9,500 for silver (one kg).

The prices and trading lots in agricultural commodities vary from exchange to exchange (in kg, quintals or tonnes), but again the minimum funds required to begin will be approximately Rs 10,000.


What do I need to start trading in commodity futures?

As of now you will need only one bank account, PAN card and Aadhar id.


Where do I look for information on commodities?

Daily financial newspapers carry spot prices and relevant news and articles on most commodities. Besides, there are specialised magazines on agricultural commodities and metals available for subscription. We are also provide Tips.


Who is the regulator in Commodity Market?

SEBI( SECURITY EXCHANGE BOARD OF INDIA)


Who are the players in Commodity Derivatives?

The commodities market will have three broad categories of market participants apart from brokers and the exchange administration - hedgers, speculators and arbitrageurs. Brokers will intermediate, facilitating hedgers and speculators.

Hedgers are essentially players with an underlying risk in a commodity - they may be either producers or consumers who want to transfer the price-risk onto the market.

Producer-hedgers are those who want to mitigate the risk of prices declining by the time they actually produce their commodity for sale in the market; consumer hedgers would want to do the opposite.

For example, if you are a jewellery company with export orders at fixed prices, you might want to buy gold futures to lock into current prices. Investors and traders wanting to benefit or profit from price variations are essentially speculators. They serve as counterparties to hedgers and accept the risk offered by the hedgers in a bid to gain from favourable price changes.

In which Commodities can I trade?

Though the government has essentially made almost all commodities eligible for futures trading. MCX offers Agri, Non- Agri ( Bullions, Energies and Base Metals) Commodities.


Do I have to pay sales tax on all trades? Is registration mandatory?

No. If the trade is squared off no sales tax is applicable. The sales tax is applicable only in case of trade resulting into delivery. Normally it is the seller's responsibility to collect and pay sales tax. The sales tax is applicable at the place of delivery. Those who are willing to opt for physical delivery need to have sales tax registration number.


Is stamp duty levied in commodity contracts? What are the stamp duty rates?

Stamp duty rates differ in various states across the country as stamp duty in IndiaStamp duty rates differ in various states across the country as stamp duty in India


How much margin is applicable in the Commodities Market?

As in stocks, in commodities also the margin is calculated by (value at risk) VaR system. Normally it is between 5 per cent and 10 per cent of the contract value. The margin is different for each commodity. Just like in equities, in commodities also there is a system of initial margin and mark-to-market margin. The margin keeps changing depending on the change in price and volatility.