Opening
up of commodity market to futures trading in India opened up a great
possibility to make money for Indians. India now has three commodity
exchanges namely, the National commodity and derivatives exchange, the
Multi Commodity Exchange of India Ltd and the National Multi Commodity
Exchange of India Ltd. Many brokers have registered under these
exchanges and most important among them are Sharekhan and ICICI direct.
One of the
greatest benefit of Commodity futures is that you do not require lot of
money to start trading. Even 125 USD or 5000 rupees would be enough to
start trading here. But to make an impact you need to invest more. You
have to create a portfolio of commodities that could help you to manage
and control risk factor.
You have to
inform at the time of contract whether you would like to take delivery
in case of maturity of the contract. An ideal futures trading could be
to buy and sell or sell and buy before the maturity of the contract so
that you could avoid sales tax and other taxation. You can inform the
brokers at the time of contract that you would like to settle in cash.
