How to trade in commodity?

Discussion in 'Commodities' started by Subhadip, Aug 4, 2010.

  1. Subhadip

    Subhadip Well-Known Member

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    How to trade in commodity?
    can any one help me..
    i do trade in equity..well ... done reasonable money profit there..
    new to commodity..
    opened account in sharekhan..
    i do not know any thing about commodity..
    can any one help me or guide me..
    by the way what is the brokerage..?
    please guide me to this new market..:)
     
  2. d_s_ramesh

    d_s_ramesh Well-Known Member

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    Welcome Dr. Shubhadip,

    You have some knowledge of trading as you have traded equities. You only need to know the products and their lot sizes. We can work in your learning. Would you need any help, write them in precise about what is your question and I will give the necessary details.
     
  3. Subhadip

    Subhadip Well-Known Member

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    well thank u for prompt reply.. sir ramesh

    i want to know the strategies..
    some one in traderji said NOT to start commodity trading with gold..
    but my broker want to start commodity broking by gold..
    but i said i do not know..
    so stop any trade till i understand..
    i know about f n o market..
    traded there..
    where from i know the lot size and total value of them..
    and .. i want to know the basics..
    where from i can know them..
     
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  4. d_s_ramesh

    d_s_ramesh Well-Known Member

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    Thank you, Dr. Shubhadeep.

    For the technical details about lot size and contract values you can visit MCX website and NCDEX websites. Any other details I can help you out. You can trade Gold, it is one of the liquid commodities in the market. There are 3 lot sizes , you can start small and then go for the full contract.

    Do PM me your mail Id I will keep in touch with you on all your requirements.
     
  5. Subhadip

    Subhadip Well-Known Member

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    which is better ..
    mcx or ncdex?
    what about gold guinea..
    a lot of it is traded at 14,498 now..
    so how muc h i need to pay to buy a lot of golduinea of august and .. how is profit or loss calculated..
    and is there any maximum loss?
    what about COPPER ....the total value of it?
     
  6. d_s_ramesh

    d_s_ramesh Well-Known Member

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    gg is the cheapest, it is 8grms gold and single unit lot. Margin today is around 600 per lot. Every point move will give you a rupee gain or loss.

    MCX has good volumes in metals and energy. While NCDEX is more into Agri based products. Though MCX also trades some of the agri products.
     
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  7. comm4300

    comm4300 Well-Known Member

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    using charts. just like you trade equities. but also keep a tab on news flow.
    commodity trading is slightly different, but you won't have problem adapting.
    as in any day trading endeavor, make sure your brokerage is bare minimum.
    broadly commodities are agri and non-agri:
    MCX is good for trading in Energy, Bullion and Metals, while NCDEX is good for agri futures trading.
    Pick a couple of commodities, observe them and find out triggers [news, seasonality etc] about them, read their charts and paper trade for a couple of days. And you are good to go.....
    for more details on lot size, expiry date, etc visit mcxindia website.
    i trade through angel at 1 paise. RK too is good.

    All the best.
     
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  8. Mr.Rao

    Mr.Rao Member

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    I have 1 short position in cardamom august 14. shall i cover my position on expiry day or should i close it before? please advise me.

     
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  9. d_s_ramesh

    d_s_ramesh Well-Known Member

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    Cardomom is very strong on the bearish side from the beginning of the current expiry. It is likely to re-test lows. It is trending, It is advisable to hold on and if there is a close above 1436 (on today's values), only then it is expected to reverse to Long.

    If need arises you may rollover as the expiry is coming close.
     
  10. d_s_ramesh

    d_s_ramesh Well-Known Member

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    Cardamom gets its reversal signal to trade long. Go long above 1647 on current contract value, but trade in the next contract. Weekly charts have strength but the back of the bull is broken. The next move will be the last on the bullish side. And there would be opportunities to have a nice bear trend from there.
     
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