Making Money with Commodity Market in India

Commodity market in India is a platform for investors and traders to deal and exchange in commodities. The prices here like the stock and bullion markets are determined by the demand and supply forces working in the market.
Though this market is still evolving in India, there is much organization in it already. We have three types of exchanges operating in the country:

• Multi Commodity Exchange (MCX)
• National Commodity and Derivatives Exchange (NCDEX)
• National Multi-Commodity Exchange (NMCE)

With the setting up of these exchanges, now investors can trade in commodities without even keeping physical stocks. This kind of an arrangement has made investment in commodities easier for smaller investors too who cannot readily keep physical stocks with them. This has opened venues for retail investors too, who know the pulse of the market and have the ability to analyze market trends. Just like any other stock or bullion market, even commodities market runs on information sharing and risk bearing. The market here too is a medium for the buyers and sellers to meet. Interesting to note there that, these exchanges have made the commodities more liquid. Now traders do not fear keeping stock, as physical stock keeping is not mandatory anymore with such kind of an arrangement.
In case one is new to this business, there are a lot of experts who are ready to lend their knowledge ad expertise in return of money. One can easily hire them and make them work on your part. Apart from them one can even rely on good sources of commodities news and make decisions accordingly. Investors here have an option to deal either in cash or through delivery mechanism. If you don't want to take physical stock, just indicate at the time of contract that the order would be completed in cash. On the other hand, if physical stocks are taken warehouse formalities need to be completed.
Since the working and legal liabilities of trading in commodity market in India is same as trading in stock, one needs to have a Demat account with the National Securities Depository Ltd. Other details that one would need to furnish would be PAN no, bank details and the likes.
The most essential step to being profitable in commodities exchange business is to have a strong grip over all commodities news. One cannot make good and profitable decisions in the absence of updated and correct information. One can rely on daily financial newspapers for the most authentic information. News channels also carry updated news and can keep you better updated. However, if you are constantly on the move, try relying on some genuine market news provider on your cell phone. Good providers send you regular updates to your cell phone through apps when you have no access to newspapers and television.