How should a beginner start commodity trading?

One of the main foundations of the global trading system is commodity market. For an ambitious and serious trader, knowledge and awareness in commodity segment play a vital role. Traders can make great profits through commodity trading day by day as they gain the experience of the market. A trader should know the basic share market tips and mechanism of the commodity market. With the advancements in technologies and internet becoming very popular, the commodity trading has become easier than before. Let's have a look at how you can start with commodity trading.

There are basically 3 main commodities which are traded in Indian commodity market. These are Agricultural, Metals, and Energy. It follows the similar procedure but different methods of trade as equity trading. Normally, you'd need a demat account to start trading with the commodities. So many broking companies offer the service to open a demat account under their names. Selective banks also offer this service, but experts suggest o go for broking firms for extra benefits like MCX gold tips, purely dedicated to the trading of gold.

An investor can start commodity trading with the minimum amount of 5000 INR but it will give you a very less profit. Commodity investments are like the more the merrier. Greater your investment, greater your profit will be. One of the benefits to trade in commodities is this market works mostly on future contracts. A trader just needs to pay the marginal amount under these contracts.

Commodity trading is simple and fast. It just depends on the trader/investor how he uses the resources and facilities available to him.