Commodities Trading deals in all kind of movable assets except actionable claims, securities and money. These consist of silver, gold and various metals and also select agri-commodities like grains, spices, oils and pulses.
Why indulge in Commodities T0rading?
Commodity prices are not impacted by the factors affecting the stock markets, and thus, offer an exceptional opportunity for portfolio diversification for the investors.
Benefits of Commodities' Trading
Diversification of portfolio: Commodity trading provides an opportunity for diversification of portfolio by offering exposure to an asset category dissimilar from the stock markets’ instruments like equities, mutual funds and bonds.
Leverage & Liquidity: Trading in commodities futures involves use of leverage through margin which is maintained with the broker. Hence, large transactions can be executed with lesser amount of cash in hand. Also, trading in commodities offer great liquidity in the market.