How to Trade in Commodity Futures in India

With the setting up of nation-wide multi commodity exchanges, a new avenue has been thrown open for Indian investors. These exchanges have electronic trading and settlement systems making it easy to trade in commodity futures. Trading on these exchanges does not require the investor to possess physical stocks. In fact less than 1% of the total traded volume involves the transfer of physical commodities.

Trading in commodity futures comprises of three simple steps.

Step One: Choosing a Broker


Step Two: Depositing the Margin


Step Three: Access to Information and a Trading Plan


Process Flow In Commodity Futures Trading



In the next chapter we will learn how to choose a commodity broker that will offer you the best trading experience.


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