Along with an ever-developing economy, India recently has opened up its commodity market by setting up multi-commodity exchanges. As a result, and because of the immense size of India’s commodity market and its associated profit potential, speculators, investors and entrepreneurs around the world are now adding the Indian commodity market to their portfolios. The steps involved when trading for the first time aren’t complicated, and most people with the minimum required financial capital can start a career in this field.
Abide by the minimum amount of capital required to be invested in the commodity markets in India. The minimum varies from commodity to commodity; however, Rs. 5,000 ($108) is required for the trading of most commodities. Rs. 650 ($14) is required for the trading of precious metals such as gold and silver.
Open a commodity demat account. This may be done at the National Securities Depository and will allow you to trade in the commodity market.
Obtain a broker that specializes in the trading of commodities. Several brokerage firms are members of the commodity exchanges. You’ll need to exchange your bank account information with the brokerage and enter into a normal account agreement.
Register with one of the three commodity markets in India to begin trading. There are three markets in India for the trading of commodities: the Multi Commodity Exchange of India, the National Commodity & Derivatives Exchange, and the National Multi-Commodity Exchange of India. Each of the three markets offer different types of commodities and futures.