ProductsCommodities

Activate Commodity Segment with the broker. This is a simple process and does not require any additional paperwork. Consent is taken with a easy OTP based process.

Commodity Derivatives can be traded for both physical delivery or for cash settlement of profits (or losses).

The market timings are from 9 am to 11:30 pm (check). This allows market participants a bigger trading window to trade on international news and events.

Commodity markets have been known for illiquid pricing, issues in trade settlement and challenges in managing physical stock. The exchange platform offers efficient price discovery, liquidity and timely settlement of trades. The warehousing and ownership process discussed below takes away the challenges and headaches of physical ownership of a commodity.

Commodities require specialized storage, depending on the nature of the commodity. Precious metals require a high degree of security against theft. Energy products have to be protected against fire. Agri products need to protection against rodents and moisture and other degradation. The commodities are stored in specialized ware houses specifically designed keeping in mind the needs for a particular commodity. The owner is issued a ware house receipt. This receipt is held in demat form and can be traded, split and consolidated and used as collateral for finance. At any time, the owner of the ware house receipt can surrender the receipt and take physical possession of the underlying commodities.

Commodity markets are for types of market participants. Hedgers may use the market to mitigate risk in their respective underlying businesses and thus protect the business from various risks. Speculators and trades with a strong fundamental or technical view of the market may use the exchange platform for execution of the same. Risk averse arbitrageurs can arbitrage between cash and futures markets or across different time series contracts. The market also provides a easy and affordable way to trade in commodities such as crude that were earlier not available for most Indian investors, particularly retail participants.