After equity & derivatives, commodity trading has shown a significant increase in
volumes as can be understood by the fact that the scale of the commodity business
has grown from 5 lac crore to above 125 lakh crore in the last 5 years.
One of the attributing factors for the steep increase in business is that over the years
investor knowledge has grown significantly in commodities & this has led to a wider participation
by investors in the commodity markets. In the last couple of years most of the commodity prices specially
gold & silver has seen an astronomical increase in the price. Gold in recent times has acted as a good hedge
to balance investor portfolio & over a period of time various investments products have been introduced in the markets,
which have further aided long term investors to actively invest & trade in commodities.
In India the commodity derivatives market is relatively in its nascent stage but,
due to the fact that India is pre-dominatingly being a commodity oriented country & with
its strategic location between the eastern & western markets, there is huge information flow
about the global fundamentals affecting commodity prices, commodity turnover has tremendous potential to
further grow in india. Currently there are 4 national level multi-commodity exchanges that are included in
the commodity trading in India: national multi-commodity exchange of India (nmce), national commodity &
derivatives exchange (ncdex), multi commodity exchange (mcx) & indian commodity exchange (icex) & there are
still a few yet to be fully established
Our Clients’ Experience
Narayan Prasad Beria-
Excellent place to learn & start investing in commodities, also constant & in
depth quality research views, & upates shared.
Harish Kumar Jain-
Personalised & genuine service, also trading made easy with efficient online trading platform.
Mukesh D Shah-
Excellent Exposure offered & good handholding by Sushil Finance in good & tough times.
Why Invest in Commodities?
- Hedging - price risk management
Commodity derivatives is an effective tool for producers, consumers,
suppliers etc of the related commodities to hedge their risk & protect themselves
against unexpected & uncertain volatile price movements by monitoring commodity news &
commodity charts. They can hedge raw materials/ finished goods &/or inventories: e.g.
A gold jeweler may buy future contracts & fix his cost price of buying gold which would be used to make jewelry.
- Direct exposure:
The commodity derivatives market offers an alternative to
directly trade in commodities rather than in the companies that deal in those commodities.
- Simple analysis:
It is much simpler to understand the impact of major economic factors that affect the commodities
prices thereby making it easier for the trader to take a holistic view on the market, based on one’s
analysis about the economic data, demand, supply etc. As compared to forecasting the price of the shares
of a company which depend on various factors beyond demand & supply of the products they manufacture & sell.
Commodity trading & price forecasting also can get a lot
more efficient based on simple technical chart patterns & analysis
- Leverage – small investment & bigger return potential:
Derivatives, being a leveraged product , require only a small sum of money to enter into contract
there by making the return on investment potential high in case of a profitable view these derivatives
can be seamlessly traded/executed through our efficient online commodity trading platform
- Portfolio diversification:
For investors, commodity trading can also be an attractive & alternative asset class to diversify their
portfolios in order to bring some stability to the portfolio. Commodity prices especially gold has been
observed to have an inverse correlation with the stock markets, & the us dollar indicating that it is an asset
looked upon as a safe haven against financial, economical & geo - political tensions. . It is also considered
as an alternate currency & an hedge against inflation.
Sushil Finance Advantage
- High quality technical & fundamental research reports.
- Dedicated relationship managers to handhold & guide investors into various aspects of commodity trading.
- Availability of 1 hour of free orientation for clients on gamut of services offered under commodity trading.
- Efficient online trading platforms for commodity & currency trading for clients