MCX Commodity Tips - Online Trading Advisory
Are you in search of an authenticate online MCX commodity tips provider who can offer reliable commodity trading tips with reduced risks and help trading commodities with great ease? We, at Futurewins assists traders, to make intelligent investments and offer effective risk mitigation strategies that help you earn maximum profit.
Whether you are an educated trader or a starter in the commodity market, get acquainted with the golden rules, innovative techniques and best in class strategies that work well for your commodity trading initiatives. At the end of the day, for a trader, MCX commodity trading must be all about sure-shots and profitable returns. As an MCX commodity online advisory, Futurewins has an in-house team of highly qualified research analysts who provides efficient commodity tips at 98% accuracy.
Now, you don’t need to worry about how to trade commodities and maximize your returns on investments and minimizing the risks associated with commodity exchange happening in this highly volatile market.
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Get Insight into Online Commodity Advisory
A commodity market is a place where traders are involved in the buying and selling of commodities related to the primary economic sector. Based in Kerala, Futurewins is the leading and the best commodity tips provider in Kerala which has a crack team to perform different aspects including the fundamental and technical analysis of the global commodity market. The data collected from such analysis are intelligently converted into useful commodity tips. We work closely with our clients to deliver good live calls and MCX commodity tips on the fluctuating price patterns and the potential reversal & break out patterns to rollout sure-shots and earn maximum returns on their investments. All the recommendations made to the customer community comply with international standards.
Futurewins upholds high-degree professionalism in delivering MCX commodity online advisory. Our research and analysis team carefully observes the ongoing commodity exchange, their movement, and price fluctuations and performs real-time data analysis leveraging the potential of cutting edge digital platforms and make the traders involved in MCX commodity trading informed about the on-going trends in the commodity trading market. Our proficient team of technical analysts and customer service officers adopts various digital techniques like live-calls updates to make the client educated about the happenings in the market. As the best commodity tips provider in Kerala, Futurewins adheres to various state of the art technologies and leading-edge digital solutions to offer flawless commodity online advisory services as an online update of commodity trading tips and live calls that yield 98 percent accuracy. The reason why Futurewins keeps their infrastructure and systems updated is that they don’t want their clients to lose their profit even by a small margin due to the inefficiency of the online resources used. Get live updates, commodity news & commodity trading tips from the best commodity tips provider in India, Futurewins!
We, futurewins, incorporate diverse risk-reward strategies that help our clientele to get the best possible results. Our committed team works continuously to make you achieve your financial goals. For beginners or an established trader, what keeps them relying on the best commodity tips provider is the ability and expertise of the technical analysts to provide accurate predictions that make them earn good profit. Futurewins has an incredible panel of technical analysts and MCX commodity market experts working with them, capable of delivering trustworthy predictions that help our clientele to receive incredible returns on their investments. No wonder that our recommendations come with an unwavering accuracy of 98%!
What is commodity market?
A market place, either physical or virtual, where the trading of primary sector commodities takes place is a commodity market. We can further divide the commodity market into two categories. They are:
- Agri Commodities
- Non-Agri commodities.
i. Agri Commodities
Agri Commodities are also known as soft commodities, where agricultural products such as wheat, rice, corn, soybeans, coffee, sugar, etc are traded. Livestock trading of pork, lamb, veal, and beef is also included in Agri Commodities.
ii. Non-Agri commodities.
Hard commodities or Non-Agri commodities involves the buying, selling and trading of natural resources. In general, Base Metals like Copper, Aluminum, Nickel, Lead and Zinc, Bullion Metals such as Gold and Silver & Energy (Crude Oil and Natural Gas) are traded under Hard commodities.
A total number of 50 major commodity markets are running worldwide, wherein approximately 100 primary sector commodities find their place under this physical/virtual market place. MCX or Multi Commodity Exchange of India is the largest MCX commodity derivatives exchange based in India, where both soft and hard commodity trading takes place. Based on the total number of futures contracts trade, MCX ranks as the seventh top commodity exchange among the global commodity exchanges. Let us now check how to trade commodities related to the primary economic sector.
Investing and trading of different commodities can be done in various ways. Basically, the direct and easy way of making investments in commodities is through buying a futures contract. To hedge against stock market risks, futures contract help traders buy or sell commodities at agreed prices but payment happens on a particular date in the future. As the best commodity tips provider capable of delivering beneficial commodity online advisory, Futurewins educates traders on how to trade commodities in the Indian commodities stock market.
How to Trade Commodities?
In the modern stock market, CFDs can help you gain more profit from the price changes. Earlier, if a trader needs to get benefitted from the price fluctuations happening for a specific commodity, you need to buy that commodity physically. I.e. As a trader belonging to the Indian commodity exchange, you want to invest in crude oil, you need to have barrels in your sore to keep the crude oil. The same is the case with the most volatile MCX commodity, Gold. Buy bullions/gold and make a safe deposit. But the situation changed a lot in the Indian share market. The introduction of CFDs (Contract For Difference), made it easy for traders as they are given an incredible opportunity to invest in any of the Indian commodities without technically owning it. Futurewins helps you discover more on Indian commodities, commodity trading basics, MCX trading and services, commodity exchanges, authenticate commodity news and 98 % accurate MCX commodity tips. Here is the list of Top Seven commodity exchanges in the world.
- Chicago Mercantile Exchange (CME)
- Chicago Board of Trade (CBOT)
- New York Mercantile Exchange (NYMEX)
- London Metal Exchange (LME)
- Intercontinental Exchange Inc. (ICE)
- New York Board of Trade (NYBOT)
- Multi Commodity Exchange of India (MCX)
COMMODITY TRADING BASICS
Nowadays, commodity investing has gained immense popularity. But futures contracts remain as one of the key ways to invest and trade hard commodities. Without any doubt, market experts say that the most productive and profitable way to invest in Indian commodities is through a futures contract. As an efficient Indian commodity online advisory, Futurewins is an outstanding platform for facilitating secure and profitable commodity trading. Now let us learn some of the effective commodity trading basics that help traders to earn more money through low-risk commodity market tips.
1. Where Should You Make Commodity Investments?
Every class of commodity is associated with a futures contract. Over the years, with cutting edge risk management techniques and out of the box thinking strategies, Futurewins became the most trusted and the best commodity tips provider in Kerala. As commodity trading brings in risks for starters, online commodity advisory agencies like Futurewins provides a deep insight into various features of Indian commodities, what is commodity trading, how to trade commodities, commodity exchange, commodity trading basics and secure & profitable commodity tips. Below listed are the famous commodity derivatives exchanges in India.
- MCX - Multi Commodity Exchange
- NCDEX - National Commodity and Derivatives Exchange
- NMCE - National Multi Commodity Exchange
- ICEX - Indian Commodity Exchange
- ACE - Ace Derivatives Exchange
- UCX - The Universal Commodity Exchange
2. Pros & Cons of Futures
Advantages of Futures in Commodity Trading:
Creating an easy entry and exit for traders, the high liquidity of futures is possible with frequently traded Indian commodities, currencies, and indexes. Liquidity plays an important role in commodity exchange as it eases the buying and selling of commodities that result in the increase of traders and speculators.
The pricing strategy of Futures is purely based on the cost-of-carry model. The cost-of-carry model is the most sought-after pricing model that cleverly eliminates all the imperfections associated with the futures market and the cash market. ‘The cost of carry’ is the factor that creates differences in the futures market and the cash market.
Both commission charges and the cost of execution of futures are very low. A commission charge is levied only when the investment position is closed. The total commission imposed is the 0.5 percentage of the contract’s total value. But brokerage for online trading service and full-service brokers may vary, depending on the type of service provided.
Mitigating risks or hedging has great significance in the futures market. The main advantage of futures is that they foresee the hidden costs of assets. A common example is that of foreign trade companies. To manage foreign exchange risks, they use futures. Futures help them lock prices of various Indian commodities known as Price Risk and anticipate the potential drop in the interest rates by locking the interest rate known as Interest Rate Risk.
Futures find the most effective and in-depth application in industries that are subjected to have strong impacts from the high level of price fluctuations. In the case of the Agri commodity market, what farmers do to cope with the sudden drop in the crop prices is, they use futures. To put it simply, hedging is an efficient risk management tool and acts as a number one protection agent against all types of price fluctuation.
As time passes, the value of the commodity is subjected to a normal decline. The decline in the prices may affect its profitability, which is known as Time Decay. Futures completely avoid Time Decay.
Futures give an incredible opportunity for investors to get greater values for the stocks rather than buying the actual stock. Whatever be the type of Indian commodities - agricultural commodities, industrial metals, bullion/gold or even energy, Futures help you earn more profit out of the commodity market.
Disadvantages of Futures in Commodity Trading:
Even though investing in futures trading appears beneficial, investors and traders might encounter its volatile nature. As the term itself says, Futures trading doesn’t give you any control of future events. For new investors, along with the inherent risks, no or partial knowledge in the domain adds to the complexity of Commodity Trading.
High leverage may create room for a higher level of price fluctuations. Even with the use of various advanced tools, what happens in the future remains unpredictable.
Future contracts have a fixed expiration date attached to them. When you have a fixed expiration date and fixed price for futures, the investors become less attracted to these futures. This situation may result in a worthless investment.
3. What is an ETF?
Traders are given the provision to directly invest in futures with the help of Exchange Traded Funds or simply ETF. In commodity trading, ETFs can be treated as secured debts and don’t need special brokerages account to make investments.
4. A brief on Exchange Traded Notes
Like ETF, Exchange Traded Notes or ETN is an unsecured debt security that comes with a maturity date. ETN is used to track the index of securities with no interest payment. Tax efficiency, no tracking error and the possibility of leverage are the advantages of Exchange Traded Notes.
5. Indian Commodities Market
Commodity Trading is regarded as a developing and intensifying type of investment. A person trading in the commodity market is known as a commodity trader. In today’s world, we have a large number of sophisticated investors who have got enough expertise and willingness to engage in various investment opportunities. We Futurewins are regarded as one of the topmost advisors in commodity trading exchange. A commodity is a fundamental product or raw material that can be exchanged with other goods of similar types. These commodities can be traded, by coming in direct contact with the seller (Physical marketplace) or through digital interactions where the interchange of merchandise takes place via electronic commerce (Virtual Marketplace). Commodities are traded based on future contracts, which signifies that purchase or sales of a particular product are based on a predetermined price at a future period. In the commodity market, the products are available at different nature and categories. Some common examples of commodities are usually substances or materials that are extracted or mined from nature such as oil, silver, and gold as they have been traded in both national and international Market Forum.
Operations of Commodity Market Trading
The same procedure applied in stock exchanges is followed while trading in commodity exchanges, where one needs to open a Demat and trading account which is done through a broker or depository participant. There are numerous exchanges where we have for commodity market trading and the most marketable one to attract the potential buyer is Multi Commodity Exchange of India Ltd (MCX). MCX is the most preferred one due to its liquidity i.e. it’s easily convertible to cash.
MCX denotes Multi Commodity Exchange which is the transfer or exchange of commodities. This trading follows an assured and explicit trade mechanism that works in adherence to the regulatory framework. In MCX Trading the seller and buyer of commodities use the future markets, to safeguard against any unfavorable movement of the price which may result in financial losses. By following the future contact method, it helps to hedge their positions in commodities, as MCX trading deals with liquid assets where one can buy and sell an asset easily without causing any disruption in price levels. Here liquid assets mean those assets which have got the highest degree of trading activity and ability to attain huge profits. One must choose the right broker while trading with a commodity in a trading exchange. A broker with a strong and dynamic customer support team is highly acceptable in the Commodity Exchange Market, and our Future wins aid you to get in the right direction. Various types of commodities are traded in MCX Commodity Exchange that brings a transformation in India’s Economic power such as agricultural-based products (Oils, Pulses, Grains), Energy (Crude Oil, Natural Gas), Precious Metals (Gold, Silver), Base Metals ( Copper, Steel, Aluminium). To enter into the MCX Trading Platform one has to become a member and after enrolling as a member they can trade with their commodities. The membership into the MCX Commodity Exchange depends on the net worth of the respective member
- Trading Member is that trade on behalf of themselves and clients which may involve Individuals, Partnership, trading organizations. These applicants should have a net worth of Rs 10 LAKHS in the case of private individuals and Rs 25 Lakhs in case of corporate.
- Professional Clearing Member:- Here the members trade through MCX’s clearinghouse where all trades executed on MCX will be cleared and settled through this clearinghouse. A company having a net worth of 500 lakhs is eligible for this membership
- Institutional Trading-cum clearing Member:- Those corporate, Partnership Firms, LLP’s, Individuals or sole proprietors are eligible to become a member if they have got a minimum net worth of 100 Lakhs
6. Best Commodity tips provider
Future wins are contemplated as one of the best leading and fastest growing online trading tips provider are here to assist you with all the significant investment solution to enroll yourself into the Commodity Exchange market.
Our ultimate aim is to protect the investor’s capital from any adverse market fluctuations and helping to stop any financial losses.
Commodity trading means trading of diverse commodities over the specific commodity exchanges such as MCX. Few tips for trading commodities have been listed below such as:-
- Before entering this platform one must most importantly understand that commodity trading is different from other forms of trading. The price of commodities is also quite different from the price of stock hence one must opt for future contracts as the volatility is higher.
- The members of Commodity trading exchange must also follow the principle of diversification, where they have to focus on multiple investment portfolio options as risks may tend to happen even for a cautious trader. Hence the trader must keep in mind all the risks and rewards associated with commodity marketing and should not get triggered with short term fluctuations.
- It is productive to consider the tips that Future wins suggest to you before you enter the trading market. During the initial stages, the traders are less aware of the commodity market. Hence we advise you to not invade into this platform all alone until and unless you understand the logistics of this trading phenomenon.
- A trader must follow the primary rules of trading before entering the market. The very first step is to know each commodity specifically and by getting the assistance of future wins any trader will get to know the pros and cons of trading a particular commodity. One must understand the right time to buy a commodity depending on the market. Some commodities may make a small move each day, while others may make a huge move.
- It is always suggestible to purchase a product when the market is going through a period from normal to bullish condition, where there may be a gradual hike in the price of commodities that will be seen. One must go through the commodity news and update them daily to understand the trading techniques or patterns that are followed in the commodity exchange market. We also help you to analyze the minor movements that happen in the trade market and arrive at the right conclusions.
- One should not enter into the commodity market with stock market trading ideas as both have got different and opposite trading patterns, own set of rules and regulations
- Invest slowly:- it is always beneficial to begin slow and invest gradually as it enables the trader to understand the market fluctuations in a better way by considering the risks involved and having a big picture on them.
- One must also open the brokerage account while trading with a commodity and must invest a portion of the amount.
- A trader should also select the commodities they wish to invest in depending on our suggestions that we future wins recommend to you.
With an aim to offer the most accurate commodity online advisory, Futurewins is continuously raising the bar through flawless, real-time risk management strategies. Over the years, Futurewins has pioneered the commodity market tips providers domain by offering reliable commodity tips based on in-depth and meticulous analysis of the commodity market.