Imagine you believe the price of gold is going to rise next month. Instead of buying physical gold, you can trade gold futures — a standardized contract to buy gold at a fixed price in the future. If your prediction is right, you make a profit. This is the essence of commodity trading.
In India, commodities are traded digitally — no need to physically own oil or wheat. Traders speculate on price movements through exchanges like MCX (Multi Commodity Exchange) and NCDEX (National Commodity & Derivatives Exchange).
✅ Hedge against inflation: Commodity prices often rise when inflation spikes.
✅ Diversification: Helps spread investment risk beyond stocks and mutual funds.
✅ Speculative Gains: Short-term traders can profit from price movements.
✅ Global Exposure: Especially via crude oil, gold, and base metals.
📌 Example: In 2022, when crude oil surged due to the Russia-Ukraine war, Indian commodity traders on MCX made significant gains from price swings — without ever touching a drop of oil.
India has two SEBI-approved commodity exchanges:
These exchanges function like stock exchanges but for goods. You don’t take delivery (unless you want to); trades are settled digitally.
You trade commodity futures — contracts to buy/sell a commodity at a future date. For instance, a Gold Mini August Futures contract means you’re trading 100 grams of gold, deliverable in August.
Contracts are standardized by:
You don’t need the full contract amount. Just a margin — usually 5–10% — to enter the trade.
⚠️ Example: If a gold futures contract is worth ₹5,00,000, you might only need ₹25,000–₹50,000 as margin. But with leverage comes risk. Sudden price dips can wipe out your capital.
Absolutely — but only via SEBI-registered brokers and regulated exchanges. You must:
🛡️ As an established SEBI-registered broker since 1992, Swastika Investmart provides a transparent, regulated, and research-backed trading ecosystem, ensuring investor trust and protection.
You can register online in minutes with your PAN, Aadhaar, and a photo.
Swastika offers paperless e-KYC through DigiLocker and webcam verification.
Add money via UPI, net banking, or IMPS.
Use Swastika’s in-house research, charting tools, and mobile apps to place your first trade in gold, silver, or crude oil.
💡 Whether you're looking to diversify your portfolio or hedge against inflation, Swastika makes commodity trading accessible, secure, and insightful.
Commodity trading in India is no longer just for institutions. With the right broker, tools, and risk management, even first-time investors can participate safely and smartly.
Swastika Investmart combines regulatory trust, technology, and market research to empower you in the world of gold, oil, and agriculture futures. Now is a great time to open your commodity account and start small, learn fast, and grow wisely.
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