Issuu on Google+

Indian Commodity Market (MCX & NCDEX) and its trading strategies A commodity is defined as goods for which there is demand in a market, but which is supplied without any differentiation in the market. The commodity market is divided in four segments and from it copper from base metals and petroleum from oils are main fluctuating ones copper fluctuates daily based on global supply and demand. There are 3 National Exchanges for enabling the purchase and sale of commodities, futures and options. These are: 1. Multi-Commodity Exchange of India Ltd. (MCX) 2. National Commodities and Derivatives Exchange Ltd. (NCDEX) 3. National Multi-Commodity Exchange of India Ltd. Commodities are defined as anything that is traded or exchanged through commerce. Simply put, investing in commodities market instruments is a way for investors to "diversify" their funds and make their financial portfolio look better. Investing in this area, however, can be more easily said than done in some cases. Because there are numerous ways to invest, for both the beginner and the veteran investor, commodities can be a tricky investment to consider. Trading strategies to be followed in Commodity market: 1) In commodity market the trader should follow a strategy after checking their risk tolerance, comfort levels, knowledge of the markets. Doing this will clear your mind in case of risk tolerance that up to which amount of loss you can tolerate. 2) In commodity trading you can also follow "Trend Following" strategy that most of the professional traders use and recommend. The strategy says that the prices that are in a trend have a higher probability of continuing in that direction. Therefore, the odds should be in your favor by taking trades in the direction of the trend. 2) You also have a choice you can follow "Range Trading" when markets is not in a trend. In commodity markets range trading strategy, you would sell the commodity to market when it gets to the top of its range and buy it from the market when it gets to the bottom of its range. This strategy can work very well for a long period of time, but you have to be careful when the market breaks out of its ran. The person who is Trading in commodities can use these strategies and can grab profit. Visit: http://mcx-ncdex-commodity-trading-tips.blogspot.in/ .........for more Information


mcx trading tips