Commodities are classified into the four categories – bullion, metals, energy, and agriculture. When it comes to commodities trading in India, you can trade in the following.

• Bullion – gold and silver
• Metals – copper, zinc, aluminium, lead, steel, and nickel
• Energy – crude oil and natural gas
• Agriculture – cotton, cardamom, crude palm oil, mentha oil, rubber, kapas, chana, barley, bajra, wheat, guar seed, guar gum, castor seed, soybean, turmeric, coriander, moong, maize, paddy, jeera, mustard seeds, sesame seed, gur, and more

You can invest in the commodity market by either purchasing commodity futures or commodity options. Also, you have the option to purchase futures contracts or options contracts of commodity indexes as well.

To start online commodity trading, you need to first open a trading and demat account with a trustworthy broker such as Mayur Financial Services. Once you’ve opened an account, you can then proceed to invest in the commodity market online through the trading portal of your broker. That said, you can also use commodity trading apps of your broker to conduct trading through your smartphone.

Yes. Commodity exchanges set maximum permissible limits on the quantity of a commodity that can be traded or held. This limit varies from one commodity to the other.

Here’s one of the best commodity trading tips that you can use. When buying commodities, to know the maximum permissible limit for a given commodity, all that you need to do is visit the commodity exchange’s website and read through the contract details of the desired commodity.

Yes. In the commodity market, both upper and lower price limits are set for each commodity. And if the commodity prices are found to be breaching these upper or lower limits, trading on the said commodity is stopped for a brief period of time.

There are a couple of differences between the commodity spot and futures markets. One has to do with the delivery dates. In the commodity spot market, the asset is to be delivered immediately, whereas in the commodity futures market, the asset is agreed to be delivered at a future date.

The other difference lies in the pricing. The prices in the commodity spot market are generally lower than the prices of the commodity futures market. However, as the expiry date approaches, the prices of both the spot and the futures market converge.

MCX commodity trading is the process of buying and selling commodities listed on the Multi Commodity Exchange (MCX). When it comes to MCX commodity trading, the following commodities are available.

• Bullion – gold and silver
• Metals – copper, zinc, aluminium, lead, and nickel
• Energy – crude oil and natural gas
• Agriculture – cotton, cardamom, crude palm oil, mentha oil, rubber, and kapas

There are two primary ways in which you can trade in agro commodities – through commodity derivative contracts or through commodity index derivative contracts.

Profitability on commodity futures contracts or options contracts depends on your position and the market movement. If the market movement ends up being favourable to you, you can make significant profits.