Trading in commodity market is done in two either ways one directly that is in physical market or through contracts that is trading in future market. The remarkable increase in the volume of trading in commodity market has been recording since the beginning of the decades. The trading in commodities takes place through the following modes

Spot trading

This is a type of trading where the delivery of the product takes place immediately if there is a delay in delivery of the product that would be due to some technical constrains. The delivery of the product takes place after visual inspection like for example wholesale market.



Future Contracts

When two parties decide over the trade of a particular commodity on the basis of some future price according to decided standards is known as future contract. Future contract is a standardized forward contract where the price of the product can be negotiable.

Forward Contract

It is similar to future contract but mostly these contracts were used for trading in commodities related to agricultural food and products.

Delivery and condition

The delivery of the product, day, time and mode everything is pre-decided and that also within two or three days of the trading done.

Benefits of trading in Commodities Futures:

A Producer: One who produces a commodity can sell the future of the commodity, and ensures that the particular quantity of the product can be sold at a particular date, as a result drawing the benefits from the production.

Investors: An investor can invest into the commodities either in spot market or in future market at a particular future or spot price. The buying and selling options can be chosen by the investor for drawing profit from the market. But the investors stay away from taking deliveries from the market.



Traders: Commodity traders are the major part of the market that make up the trading phenomena alive and increase the volume of trading in the market. The traders either play in the sell side of the or in the buy side or enjoy the benefits. Traders always play an arbitrage in commodities, whenever they encounter upward movement in gold they tend to short silver. Similarly if silver is in uptrend then they go selling of gold. In this way they hedge up their trade.

As the scenario seems to be little risky looking towards the recession, price rise, natural calamity and various other factors stock market is becoming a very volatile place for the execution of trade. People are turning towards commodity market as per the trends. Commodity market as traded future seems to be a beneficial place for traders and investors. But taking the profit and loss in to the account one should play safe and always follow the stoploss strictly. Commodity tips given by the experts should be well evaluated looking at the market trends and then should be traded upon.

Trader should search for the best broking firm which offer them less brokerage and max returns, never run behind the cheap and free tips as they are not going to benefit in anyway. So analyze the tips before you invest in the market.

stock tips today, stock cash tips today,free share market tips for today, free stock tips for, share market tips, intraday tips, free stock tips, free trial for share market tips, free equity tips, equity tips, stock future tips, stock cash tips, hni tips,premium tips, free premium tips,Commodity tips, share market tips for today.

For more detail and to know about our free trial services you can call us on 09200009266 For more detail visit our website www.theequicom.com

 
Picture
Equity Market Basics and Equity Tips Analysis

There are two fundamental types of investments namely bonds and stocks, bonds are written form of investment where person who is lending the money keeps record of amount of money, interest rate, expiry date and all.

Bonds are in a way less risky and also give high interest rate as compared to share buying and selling. On the other hand if we talk about shares which are also equities are like buying a share of a company, this makes you a part of that particular company. You become a part of the profit and loss of the company.

Increasing number of stockbroker Lead to the requirement of a stable stock market exchange and thus first exchange came into existence that is known as the Dalal Streets, it’s the oldest stock exchange in India. Then after there came into the existence Bombay Stock exchange which itself is 130 years old now. National stock exchange that is NSE came into scene when a revolutionary change was seen in the trading styles of the trader. It was in 1993 when NSE was build. Resulting into the birth electronic form of trading.

Equity Market is specifically divided into two parts

Primary Market: it’s the market where a company introduces themselves into the exchange a particular price for earning capital; this in particular is called as Initial public Offer where the issuer is selling its securities for the first time.

Secondary Market: After the introduction of the securities form the primary market now the question comes of the resale. In this market one investor buy or sell the share at a particular price or at a pre-decided price.

Both of these markets are governed by one general body in India which is Security and Exchange Board of India i.e SEBI this body came into existence in the year 1988 the board has become the most important regulatory boards as it keeps an eye on both development and regulations in the market.

SEBI’s main work is to

1)    Protect the interest of the traders and investors while trading in securities.

2)    Regulating the security market.

3)    Developing and promoting the security market.

The board is working upon its two fold mission where the first is to integrate the security market at National level and second is to diversify the trading products to increase the number of traders and transaction through the exchange. A stock exchange is places where traders buy or sell free equity tips shares or securities. A stock which is being listed in the exchange can be bought or sold according to the price range. Analyst analyze the movement of the particular share and come up to the decision of buying or selling of an equity share and this is known as equity tips which help a trader to make a decision of execution of a trade.

 Equity tips are being worked upon once passing all the standardization regulated by SEBI. An exchange is a hub where the stock broker buyers and sellers meet together.