Commodity Trading: Gold, Oil, Metals
and More with YES SECURITIES!
Take advantage of the ups and downs in prices of gold, oil, metals, and other valuable commodities as you leverage market dynamics to boost your capital!
Popular Commodity
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Why Invest in Commodities?
Gold has long been a traditional hedge against inflation, while crude oil and metals also tend to gain during rising inflation due to shifting demand-supply dynamics.
Investing in commodities allows you to diversify and mitigate risks in your portfolio and trade conveniently from anywhere.
Returns
Commodity prices, which can yield significant returns, are influenced by various factors, including supply and demand, inflation, and economic conditions.
Engage in commodity trading by buying and selling contracts on the futures exchange.
Gold has long been a traditional hedge against inflation, while crude oil and metals also tend to gain during rising inflation due to shifting demand-supply dynamics.
How to Activate a Commodity Trading Account with YES Securities?
- 1In the Demat and Product stage, select Commodity under Product Details.
- 2For commodities, accept the following: Commodity Terms & Conditions (T&C) ,Commodity Categorisation,Commodity Name
- 3Accept the CAMSfinserv Terms and Conditions.
- 4Complete the CAMSfinserv verification journey.
- 5Six months of bank statements will be automatically retrieved and uploaded under the Income Proof section during the document stage.
Documents Required to Open Commodity Trading Account
(Last 6 Months)
Acknowledgement
Certificate
Statement
What is commodities?
Commodity trading involves buying and selling raw materials like gold, metal, oil, or agricultural products through spot or futures contracts. It helps producers, traders, and investors manage price risks and gain exposure to market movements. This type of trading plays a crucial role in balancing global demand and supply, offering opportunities for risk management and speculation across sectors.
Types of Commodities
The commodities market trading is classified into the following types depending on their inherent nature:
- Precious metals(e.g., gold, silver): Standardised metal contracts used for price-hedging and investment.
- Base/industrial metals(e.g., aluminium, copper, lead, zinc, nickel): Widely used in manufacturing; they provide exposure to industrial demand.
- Energy commodities (crude oil, natural gas): Vital energy resources with prices influenced by global supply, demand, and geopolitical events.
- Agricultural commodities commodities (cotton, crude palm oil, mentha oil, spices): Farm products influenced by weather, seasons, and cropping patterns.
How Does Commodity Trading Work?
Here is how commodity trading works:
Trading Platform Access: Traders use a terminal to access the commodity market, place orders, and track positions.
Live Market Data: Real-time tools display prices, volumes, open interest, top gainers/losers, and net positions.
Order Matching: Orders are matched using price-time priority, ensuring fair and transparent execution.
Order Types (Time-Based):
- DAY:Valid for one day.
- GTC:Remains until cancelled or contract expiry.
- GTD:Valid till a set date.
- IOC:Executed immediately or cancelled.
Order Types (Price-Based):
- Limit Order:Executed at a specified price.
- Market Order:Executed at the best available price.
Margins:
- Margin is required to trade and is calculated using risk-based models.
- Includes initial margin, extreme loss margin, and delivery period margin to safeguard against price volatility.
Advantages and Disadvantages of Commodity Trading
Advantages of Commodity Trading
- Hedging: Commodities move opposite to stocks and bonds, helping balance risk in a portfolio.
- Inflation Protection: Rising commodity prices increase portfolio value, maintaining purchasing power during inflation.
Disadvantages of Commodity Trading
- High Leverage: Low margin requirements can lead to taking large, risky positions and significant losses.
- Extreme Volatility: Prices can fluctuate sharply due to geopolitical tensions, natural disasters, or economic changes.
Did you know? Coffee is the second most traded commodity in the world
Did you know? Coffee is the second most traded commodity in the world
FAQs on Commodity Trading
How does commodity trading work?
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Which is better to trade - commodity options or commodity futures?
How risky is commodity trading, and how to manage it?
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Is there any charges to trade in commodities on YES SECURITIES?
What is MCX?
What are the major commodity products available in India?
How much time does it take to activate the commodity segment?
Are there any charges to activate the commodity segment?
What are the trading hours for commodities?
What are the various factors to be kept in mind before trading in commodities?
What is margin in commodity trading?
What is the date of expiry?
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