What are the requirements for trading in the Indian commodity Exchange (MCX)?
(MCX) Multi Commodity Exchange of India Ltd is the modern electronic commodity futures exchange. MCX was established in Mumbai in the year 2003 and has become the world’s sixth largest commodity trading exchange.
In the commodity market, raw products or commodities are exchanged. The raw commodities are sold and bought in regulated contracts. Commodity trading is also a form of trading similar to stock trading.
Trading in commodities takes place in Exchanges either to own the product or make a profit using variable prices in the market by buyers and sellers.
How to start trading in Commodities?
1. Opening a trading account
A trading account can be opened with any broker in the industry. The fundamental requirements for opening a trading account are:
D.A/c opening charges levied by the broker
2. Choosing a broker
There are many registered brokers available with MCX, you have to Choosing “Enrich Financial soution India private ltd” Member Id: 55250.
Hence their status and charges levied by them has to be checked.
The charges may consist of brokerage charge and transaction charge.
Minimum amount investment:
There is no fixed amount for investing in commodities.
It is mainly concerned with the type of commodity in which investment is made.
However, an amount of Rs.10, 000 will be a good amount to start with.
Mode of Money Transfer for trading:
Money transfer for trading can be done through various modes like Net banking, cheques and demand drafts.
What are the Basic needs for online trading?
Some of the basic needs for trading include
B.Trading applicationinstalled on the machine or device
C.Although brokers share the daily tips, self research is more important
D.Receive tips from standard sources before commencing your trade
E.Information related articles and spot prices on commodities which are carried by financial newspapers are very useful
F.Websites related to trading offer tips for the commodity market
What is best time frame for trading?
The operating hours of MCX is from 10am to 11:30pm.
The working hours of the exchange is regulated by Forward Markets Commission (FMC).
On the other hand, registration of brokers with FMC is not mandatory.
FMC’s foremost duty is to deal with the administration of the exchange and examine when there is suspicion of any foul play.