Till some months ago the investment universe for Indian residents consisted only of shares, bonds and real estate. Indian markets have recently opened a new avenue for retail investors and traders to participate in- commodities derivatives. With the setting up of several multi-commodity exchanges in the country, retail investors and traders can now trade in the commodities futures without having to take physical delivery.
Commodities offer immense potential to become a separate asset class and thus offer an opportunity for investors to diversify their risk.
The approved commodities that can be traded include bullion - gold, silver; metals - steel, copper, aluminum, lead and nickel; crude oil; and several agricultural products.
Market participants can hedge their position over
a longer period. Commodities futures are also easier
to understand. One just has to keep track of the demand
and supply and not the several financial metrics.
To open a trading accounts in commodities you simply
need to fill a form and submit it along with some documents
and a margin cheque.
Please
click here to download the application form.
Please
click here to get the list of the documents required.