Commodities are the fuel of life. In recent time, investors have been turning their attention to Commodity Futures given its various inherent trading advantages and characteristics. For example, Precious Metals have always been considered as a Store of Value in times of uncertainty and inflation. A rapidly increasing global population and shrinking arable land are slowly increasing the demand while reducing the supply of agriculture products. In addition, erratic weather is increasing the short term volatility in supply. Think you can correctly estimate the direction of such commodities?
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 are the best option.
However, with the setting up of three commodity exchanges in the country, retail investors can now trade in commodity futures without having physical stocks!
Commodities actually offer immense potential to become a separate asset class for market-savvy investors, arbitrageurs and speculators. Retail investors, who claim to understand the equity markets, may find commodities an unfathomable market. But commodities are easy to understand as far as fundamentals of demand and supply are concerned. Retail investors should understand the risks and advantages of trading in commodities futures before taking a leap. Historically, pricing in commodities futures has been less volatile compared with equity and bonds, thus providing an efficient portfolio diversification option.
In fact, the size of the commodities markets in India is also quite significant. Of the country's GDP of Rs 13, 20,730 crore (Rs 13,207.3 billion), commodities related (and dependent) industries constitute about 58 per cent.
Experience the benefits of Mohak's leadership, access and flexibility.
“Mohak Commodities Pvt. Ltd.” offer you the facility to trade at two major commodity exchanges of the country.
- Multi Commodity Exchange of India Ltd (MCX)
- National Commodity and Derivative Exchange, Mumbai (NCDEX)
Membership in multiple exchanges gives clients the added advantage of arbitrage.