ABans Group of Companies: June 2017

Wednesday 7 June 2017

Role of MCX and NCDEX in Commodity Market

The commodity exchange of India is termed as MCX (Multi Commodity Exchange). A platform is provided by this exchange and anyone can use it for trading. There are traders who think that trading in stock market is done with only virtual shares. You can simply contact traders on the deals they have quoted and further get the trading done between them with one party as buyer and other party as seller.This is what is meant by MCX – Exchange of Commodity Market.

The best alternative to stock and shares (Stock Market) offered to traders is “Commodity Market”. There are various different segments in commodity market and you can select any one of these segments for trading. Some of them are precious metals like silver, aluminum, zinc, gold and agricultural commodities like cardamom, jeera, wheat, rice etc. NCDEX (National Commodity and Derivative Exchange Limited) is another exchange that regulates commodity market and it is largest commodity exchange of India.

Key players of commodity market are the traders who trade in share market and also manufactures who use these commodities as raw materials. You should always book commodities for a future date and at a present date price so that the future sustainability is ensured. You must always take help of some market experts to know the booking price of these commodities. ABans Group provides commodity tips on the basis of deep market analysis and research work.

Founded in 2005, ABans Group has grown from being a trading house to a dynamic and diversified business group.We provide expertise in broking services, merchant banking, non-banking financial dealings, jewellery manufacturing, realty &infrastructure. It is a comprehensive financial services & solution provider,which aims to provide an end-to-end financial solution to its clients.

Apart from trading through exchanges, we are also involved in physical trading. We trade in various agro products such as Castor seed, Jeera, Wheat, Chana, Maize, Coriander, R.M. Seed and Cotton Oil Cake (Kapas Khali). These commodities are stored in warehouses owned by our group Company “ABans Reality and Infrastructure Pvt. Ltd” and in leased warehouses.

Learn about Futures Trading

Futures Trading - whenever there is speculation in price of commodity and that too in the form of paper investment.You make a profit if you speculate correctly and vice versa. It is not necessary for you to hold the physical product in order to make money because of paper investment and commodity can be anything from currency to rice. The contract of the product will help you to speculate the prices.

Speculators and hedgers are main types of people who trade in futures. The manufacturers of products are hedgers and they protect themselves by trading in the event the price of the product changes. On the other hand, speculators do not have connection with the products as they do not produce the products. They are always interested in making money with the movement of market to their advantage. Benefits of futures trading are as follows:

High Returns: You can make a lot of money if there is a right speculation and this is because of futures that are highly leveraged investments. Sometimes the profits are multiplied tenfold on what you have speculated. You make a tidy profit and get back your margin if the market goes according to your speculation.

Dealing with Papers: In futures trading, you do not have to hold the actual product because you always work with papers.

No inside Information: If you consider other forms of trading then there are cases where some people do not have inside information and they make losses. But in futures trading, an official market report is released at the end of a training session and everyone interested can look into it.

Learn about Commodity Trading

There may be instances where you would have heard from investors about speculating in futures of commodity market. We all know about investments in stocks but focusing in commodity market can have your money make money for you. First and foremost it is important for you to know the meaning of commodity. The goods where one portion is same as the other are termed as “Commodities”. Example of commodity is gold where 1 ounce of gold is the same as next.

External forces such as shipping costs or changes in composition make differences in some commodities. For example – if we consider shipping, all oil sells come from different sources and thus they do not cost the same. Further they are traded in various markets with different pricing. Spot markets and futures are two ways of trading commodities.

Trades that take place literally on the spot are termed as “Spot markets”. Trading of commodity there and then for cash or some other product is an observation of Spot Trading. This type of trading can be done in larger volumes. On the other side, futures trading involves speculating on the future which can be risky and thus you can expect having huge profits as well as huge losses. Completely new insight into the whole world of commodity futures trading is possible only if you decide to start learning to trade commodities. Grow your money with ABans – a leading stock broker of India.

Invest in commodity trading, mutual funds, agricultural commodities, futures market and securities.

Difference between Option and Future Trading

Option trading is where there is no responsibility of buyer to buy or sell a definite asset at a definite price at any time during the trading. If the buyer has the responsibility to buy a specific asset and the seller to sell that asset at a definite future date then it is termed as “Futures Contract”. Participation of investors in futures trade is possible with no upfront cost and premium payment is required for purchasing trade an options position.

The volume of underlying position is another key dissimilarity between options and futures. With respect to futures trade, the underlying position is much bigger and more risky for the inexperienced trader. Increase that is obtained by parties with reference to these two financial tools is the last major difference. The recognition of increase on an option can be done in following three ways:

a) Work out the Option when it is profound in the money.

b) Setting opposite position by going to the market.

c) Waiting until expiry, collecting the difference between strike price and asset price.

Considering future trading, the futures accounts of traders at the end of each trading day are credited with the modifications in value of the stage. Also the futures trade holder can take the reverse position and recognize gains by going to the marketplace.

Commodity Trading and Market Strategies

Plan Every Trade: Increase profit in the commodity market by following trading rules because Money Saved is the Money Earned. Recover your lost money and make profit in a secure way with some trading rules in MCX market.

a) Stop Loss, Decide Target & Quantity to Trade.

b) Do not trade at all if you do not have knowledge, tips and risk associated with product.

c) Number of lots to trade to be decided with risk and target.

You can recover money from unexpected market changes only by believing in stop loss. Risk only if you can afford to lose and trade in one market as a Commodity. Sometimes we do not see market movements and place deals in hurry. Up and Down situation in the market is the usual thing and thus do not place order in normal movement.

It is must for you to have money for another call if there is an occurrence of unexpected market movement and always trade in your limit. Selling and buying too many stocks or commodities or indices is not recommended at all. If the market goes opposite to what you have decided then it will only diverge attention, confusion and play chaos in money management.

Founded in 2005, ABans Group has grown from being a trading house to a dynamic and diversified business group. We provide expertise in Broking Services, Merchant Banking, Non-Banking Financial Dealings, Jewellery manufacturing and Realty and Infrastructure. It is a comprehensive Financial Services and Solution Provider,which aims to provide an end-to-end financial solution to its clients. You can identify real possibilities of trading in all the section of industry with ABans Group. Our experts provide you various resources to achieve success the right way.

Become a Successful Commodity Trader

Playing in the major league is like being a commodity trader. With respect to trading, you could not be successful in the long run if you do not have proper training or you are not taking help of experienced traders like ABans Group. There is an incredible leverage and this market tends to move fast. We would like to share some relevant information on how you can make money as a commodity trader.

It is must for you to have a successful trading plan that will fit your personality as much as possible. Your blueprint of success in the market is “Trading Plan” and it will encompass all aspects of trading. The crucial element of commodity trading is Money Management. Let your profits run by keeping all losses on lower side. Consider this as a golden rule of trading and this will help you to have a bright future in commodity market.

Many investors and traders fail because the top trading principals are contrary to normal human nature. Important tool for market technician is price chart and the proper interpretation of chart patterns must be implemented by successful commodity trader. The recognition of whether the commodity is under accumulation or distribution is possible only with “Volume” that is a great measure of supply and demand. Whenever the big buyers are causing the jump in price then a commodity shows a big price jump to new heights or much heavier than normal value.

Basics of Commodity Trading

People always want to facilitate cash prepared ethical problems and thus they are looking for their capital to grow. Today, individuals or companies are employing well established firm like ABans Group to trade on MCX trade market. If you rely upon your market earnings for decent living then it is a safer bet to stay with a trade broker. This kind of trading is assisted by lot of companies and we suggest you to find one that will effort for you.

Understanding stock, commodity market, trading shares and commodities is possible with Knowledge Center section of ABans website. When on the online share marketplace, it is quite interesting to believe that a simple share buy and sell is merely a computer mouse click away. Online trading allows broker or adviser to be on the same page because you and broker will have straight access to your dealing account through the internet.

Deals are rather simple to do in online commodity or share market and thus this is one of the largest benefits. We should never be misled by any variety of profit gains in market. It is important that you consider your own provocation and complexion into thought when you are developing your strategy within the commodity trading. Or take help of ABans Group for safe trading.

Advantages of Futures Trading

The good opportunity for people to invest in is “Futures Trading”. If you want to invest in something other than stocks then the only unique opportunity you can think of is trading in futures. Once the amount is invested on futures trading, it presents a different method of earning revenues. Several advantages of futures trading for interested investors are as follows:'

a) An investor needs to invest a small fraction of the value of contract in order to own a futures contract. Only ten percent of contract’s value is invested by most investors in exchange for trading them.

b) The investor has a great chance of profiting tenfold for an initial investment if prediction is made for the movement of prices of correctly traded commodities.

c) Futures trading is basically a paper investment and any investor does not have to worry about taking care of produce himself. Also investors do not have to worry about storage and keeping of traded commodities for the meantime.

d) Traded futures contract are considered very liquid and there are huge amount of contracts being traded in the market on daily basis.Whatever the commodity be, you will always find a quite number of buyers and sellers available for futures contracts.

e) Futures trading market enjoys fairer trading as compared with stock and share trading.Futures exchange trading is done in the midst of shouting of “Buy” & “Sell”.

f) Commissions on other trading markets tend to be more as compared to futures market. It may be quicker for any investor to make money on futures trading.