Commodity Trading

These include Commodities Broking Services, Hedging Solutions and Arbitrage Desk to meet the requirements.

Advantages of Investing in Commodity Market

Many investors regard trading in commodities as risky. The complexity and volatility of commodity markets deter people from investing here. But a well-planned commodity investment can be beneficial for your portfolio. It may offer a host of benefits. Here’s a look:

Offerings

In a vibrant commodity market, you may need expert advice to take part in and gain from the market. Take a look on the below market types –

• Branch Assisted Commodity Trading - Kotak Securities brings you branch-assisted trading. Our relationship managers would be glad to help you with sound trading advice by our Research Analysts. We understand that many customers prefer hand-holding and assisted trading.
• Online Commodity Trading - In today’s time, the commodity market offers wide range of trading opportunities. To unlock these opportunities for our clients, we have internet based trading account where our clients can execute their trades independently through various platforms.
• Corporate Advisory - The corporate desk offers access to commodity and derivative platforms. It does this through the membership of domestic commodity exchanges like the Multi Commodity Exchange (MCX), and the National Commodity and Derivatives Exchange (NCDEX). It also holds membership of National Stock Exchange (NSE), Bombay Stock Exchange (BSE) for currency & commodity. The corporate desk helps them in the hedging process. This includes the implementation and continuous monitoring of their positions. Our guidance helps clients withstand the vagaries of commodity price fluctuations in their businesses. This may generate higher risk-adjusted returns on their capital.

Types of Commodities Traded in India

When you invest in the commodity market, you may be spoilt for choice. There are various types of commodities available to be traded in the market. One way of categorizing commodities is into two groups: Agricultural & Non Agricultural. Commodities that fall under each of these groups are given below.

Agricultural: -

• Edible Oil: - Traded commodities in edible oil are Soybean, Soy oil, Mustard Seed, Palm oil, Mustard seed oil cake & Soy Degum.
• Spices: - Traded commodities in spices are Cardamom, Black Pepper, Jeera, Turmeric, Chili & Coriander.
• Pulses & Grains: - Traded commodities in pulses & grains are Cotton, Mentha oil, Wheat Maize & Chana. Gaur Seed, Gaur Gum, Castor, Kapas & Cotton Seed oil cake commodities comes under others.

Non Agricultural: -

• Precious Metals: - Traded commodities in precious metals are Gold & Silver.
• Base Metals: - Traded commodities in base metals are Copper, Aluminum, Lead, Nickel & Zinc
• Energy: - Traded commodities in energy are Crude oil & Natural gas. Steel comes under others.