Futures Trading Simplified

Now-a-days futures trading in commodity market is a booming business in India. Following are the technical terms of commodity futures trade explained in simple language:

1.       Cash Commodity–It is the actual physical commodity as distinguished from the futures contract based on the physical commodity.

2.       Settlement of Cash–According to a procedure specified in the contract, it is where the seller pays the buyer the cash value of the commodity traded.

3.       Carry Forward Position–This is the situation in which client carries his open positions to the next day.

4.       Arbitrage – Here similar commodities are on simultaneous purchase or sale in different contracts or in different exchanges of the same commodity in one exchange.

5.       Clearing Member – A non clearing member should settle all the trades through a clearing member.

6.       Day Trader – It is within a single trading session, a speculator will normally initiate and offset a position.

7.       Default–As per the exchange rules, it is the failure to perform on a futures contract.

8.       Derivative–It is traded on or off the exchange and its price is directly dependent upon the value of one or more underlying securities, equity indices, debt instruments or any agreed upon arrangement.

9.       Hedging–Hedgers take advantage of adverse price changes in the market and protect their businesses.

10.   Long – It is one who owns a cash commodity or has bought futures contracts.

11.   Price Discovery–The price level of commodity is determined on the basis of supply and demand factors.

12.   Short – One who has sold cash commodity or futures contracts.

13.   Speculator–One who anticipates future price movements and tries to profit from buying, selling future contracts.

14.   Trade Account – It is an account with the broking organization to trade in the futures market.

15.   Volatility – A measurement of the change in price over a given period of time.

16.   Warehouse Receipt – The client receives a Warehouse Receipt when the commodity sold in the futures market is taken the warehouse.

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, Gold Refining and Realty and Infrastructure. In a nut shell Abans Group is a comprehensive Financial Services and Solution Provider, which aims to provide an end-to-end financial solution to all its clients.

Multiple Opportunities offered by MCX

Multi Commodity Exchange of India Ltd. (MCX) is one of the most advanced and  robust Exchanges through which  a potential investor, dealer and hedger can trade in multiple types of commodities. While in MCX it is even possible to get started with a small amount of money, MCX provides the best platform and infrastructure for traders who want to earn more by diversification of their risk through the commodities market. There are multiple and newer asset classes and products getting introduced in the Commodity derivative market segment on a regular basis. The top products that are usually dealt by major section of the investors include aluminum, gold, silver, zinc, copper and more. In addition to commodities, MCX through its subsidiary company Metropolitan Stock exchange of India Ltd (MCX SX) deals in the currency segment and has established itself with a consistent turnover since inception.

The Commodity and the Currency markets being the latest entrants in the Indian financial space have gained immense popularity in a short span of time. MCX has become one of the most successful exchanges in the commodity market space because of various advantages that it offers which are extensively used by millions of traders, hedgers and investors.

In addition to offering the most traded commodities in the commodities market, the salient features of MCX could be listed as follows:

1.       Regulated by a world renowed regulator SEBI

2.       Technologically sound Exchange with continuous upgradation and innovation on real time basis.

3.       It provides an end to end solution thus strengthening the Financial Ecosystem.

4.       It has the permissions to deal in options, futures, equity, derivatives and wholesale debt segment

 ABans Group – one of the most renowned commodity trading company suggests and advises its clients to always follow a systematic approach of investing in the commodities market by choosing the right platform, getting familiar with the environment, analyzing the relative trends before indulging in buying and selling in various commodities.

ABans Group – one of the most renowned commodity trading company, provides you unparallel expertise through its experienced team  who can handhold the investor to provide them with the best insights into the commodities market and provide customized solutions according to the risk appetite of the investor.

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, Jewelry 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.

New Practice of Futures Trading

It is the fixed price at which the commodities are sold in future. The trend of futures trading is gaining popularity day by day. There are many buyers and sellers engaged in trading openly with respect to competitive market economy. Financial and commodity are two types of futures trading. Commodity futures contract is all about physical commodities such as gold, silver, diamond, oil, rice, sugar, wheat and natural gas. While mutual funds, treasury notes, bond and more are included in financial futures contract.

People should always think of maximum returns by investing in right contract that can easily liquidate. Many do invest in both the contracts and commodity futures contract is less risky as compared to financial futures contract. If the chance of revenue is maximum then trader should go long as well as liquidate the contract. Buying a contract i.e. going long is more conventional than selling a contract. Futures trading is highly leveraged and traders are divided in two groups – Hedgers and Speculators. Always remember that risk of loss exists in futures trading and future results are not dependent on past performance. We suggest you to either become wealthy in the process by making into winner’s circle or tie up with ABans Group – the best commodity trading company. If you want to have a great deal of time, then this kind of trading is best for you.

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.

Gold MCX Trading Tips from Experts

When widely known investment is at a standstill, gold has traditionally proven to make profit for investors because of the sharp and fast increase observed in gold market. The wealth during economy destruction observed in 2008 was solely protected by yellow metal “Gold”. Issues that the world is experiencing are not going to disappear tonight and it is important to defend our wealth and obtain a reasonably safe future for our family members. Thus we suggest all commodity dealers or investors to take suitable actions now.

Every person does not have to follow a single investment technique but profit booking and exiting at the proper time is too important for magnificent wealth building. Each and every portfolio must include gold investments in order to protect against inflation and decreasing values of well-known investments. The emergence of highly effective new economies like China has increased the global requirement for Gold. This yellow metal is having a stabilizing impact and thus buyers are switching more of their investments into Gold.

Gold metal is as old as man and it exist in some form or the other. Indians are great collectors of gold – one of the most sought after metals in the world. It is estimated that Indian households own nearly 950 tons of gold and has a value of dollar one trillion. For the massive jewellery demand across the countries, Gold is always the metal of choice. The availability of an interesting commodity with a rich lineage is beneficial for traders on commodity exchanges.

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.