From shares to commodities

I wanted to start investing into commodities.

But confuse where to open an account.So far i have been doing share trading with my online share account from hdfc.

But they dont provide platform for commodities.

I had account with angel for shares(this branch doesnt had any account for commodities).But had a horrible experience and hence had to shut it.

Now when i ask someone i want to open an account they say opening account depends wheether you want to trade in mcx or ncdex.Also i have heard about reliance exchange ace and so on.

I am totally confuse.For shares bse and nse coexit.Is their a platform for commdoities too.I am planing to invest not part time trading and margin stuffs.

Please throw some light on this issue.

I was ready to go with nsel too but range of commodities is too limited.

MCX is without doubt the top commodities-exchange in India, the volumes speak for themselves.

I'm not sure what you mean by "I am planing to invest not part time trading and margin stuffs."?
Do you want to OWN the goods or something? NSEL would be better for that but commodities-futures-exchanges like MCX, NCDEX are mostly used for hedging & speculation for the purpose of "price-discovery", very very few people actually take delivery of the goods at the expiry of the contracts, most positions are settled in cash, NOT actual goods & the contracts are usually for smaller durations.
And what do you mean by "margin stuffs"? Please clarify.

There are plenty of brokers offering commodities on both MCX & NCDEX. Cheers

Most simple explanation:

You pay money or give a guaranty of a certain amount of money to the broker for what ever risk you take with your trade.

If you buy a house, your bank will charge and value you with what you can give them as safe value.

If you now ask for a loan, they want to be sure, that you can stand or bring some safety for this loan.

If you chose a future or option to trade, the bank will ask you for your safety to trade this future, as this future or option will have a fix price.

If you buy the future or option, you give the money to the bank and the bank take the risk of your trade.

If you sell a futures or option, you take the risk on your side on this naked sell trade and the bank or who ever want to see a guarantee, in case you make a loss on this trade.

This guarantee is called margin.

If you now start to hedge and what ever, the broker should start to calculate your margins in an other way. But here we are already on a point , where you have to test your broker.

Tc

DanPickUp

I meant like shares of RIL which i hold for long.Can i do same for commodities or is it like future and option where i have to sell it within a time frame.

Also can i make purchases worth say just 2k in a day like i do in some shares buying it SIP way.3-4 shares.Similarly units of commodities.

Since you people mentioning people doesnt take delivery should i concentrate on NSEL exchange than ?

In shares account where do they ask for guarantee.Yes ofcourse in margin trades they do.But i am an investor not a trader.

Here's my reply to a question similar to yours - http://www.traderji.com/commodities/60910-basic-commodity-trading-info-needed.html#post596696
You might be able to extract a better understanding of what commodities-market & commodities-trading/investing is all about. Cheers

sir
r u still interested in opening commodity account
please call or leave message o these number we will call u
9870330091