India has a deep ingrained knowledge
in commodity trading (and particularly forward trading in commodities),
especially in the interior heartland. For last 40 years or so, such forward
(futures) trading was banned in the country for a variety of reasons and
it is being revived now. The ban has meant that two generations have lost
touch with the trading skills and the related knowledge levels in the
commodity space. Fortunately much of the skill sets have migrated to stock
exchanges.
In these intervening years, some regional
exchanges specializing in specific commodities, where the bans were lifted,
have carried on the baton. Also large informal trading, primarily by the
speculative segment of the universe of market participants has remained.
This has led to a mindset in the common man in the country that commodity
exchanges are purely speculative in nature. The hedging and price discovery
functions that they perform are largely ignored today by the cross section
of the population.
Our endeavor is to reach to the producers, end-users,
and even the retail investors, at a grassroots level. Education and awareness
has a key role to play in achieving this vision.
Why Commodity Market?
Commodity derivatives records high volumes
in the markets the world over compared to equity derivatives. In an era
where risks to investments are on the rise and India being predominantly
an agrarian economy, needs to switch to commodity derivatives to top the
list of developed nations.
With the other asset classes offering attractive
returns, "Why Commodities?" is the inevitable question that pops in
one's mind today, more so considering that the BSE Sensitive Index and NSE Nifty
are scaling new highs by the day. Commodity derivatives provide unique money-making
opportunities to a wider section of market participants, starting from planters
to exporters, importers et al. And to the agrarian Indian population commodities
are obviously not new, nor are the advantages of trading in them unknown.
No balance sheet, P&L statement, EBITDA and reading
between the lines. Commodity trading is about the simple economics of
supply and demand.
Supports are known, only resistance matters! Minimum
support price acts as a statutory support for many commodities.
No breaking of heads over market direction. Seasonality
patterns quite often provide clue to both short- and long-term players.
No scam, no price rigging. Commodity trading comes
with nil insider trading and company specific risk.
What's more, why invite risk by investing in a metal company
when you can trade in the metal itself?After all, while
the stock price of the company is dependent on several factors including the
company's own fundamentals, the price of the metal is driven by the simple economics
of demand and supply. The more the demand for the metal, the higher its price
and vice versa. Also compared to equities it is much cheaper to trade in commodities,
where margin requirements are lower.
About Emkay
Emkay offers futures trading through"Emkay
Corporate Services (P) Ltd.".We
have membership with two of the major Commodity exchanges of the country.
Multi Commodity Exchange of India Ltd, Mumbai
(MCX)
National Commodity and Derivative Exchange,
Mumbai (NCDEX)
Large numbers across the country participate in the futures
market through Emkay's rapidly expanding online trading terminal network extending
to even remote areas. Local, national and international agri-information is
disseminated through the company's large branch network. Seminars, free inhouse
literature and interactive site sessions raise awareness levels on the futures
market. Consequently, large numbers of informed participants enter the trading
process resulting in increased volumes and market efficiency.
Relationship
Commodity futures trading has extended to oil, metals
and other agro commodities. The spectrum of Emkay's active clients and players
includes individual investors, hedgers, corporates, institutions, traders, manufacturers,
speculators, arbitragers etc.
Emkay trades in commodities like soya, groundnut, cotton,
edible oils, rubber, etc. with varying shelf lives, facilitating vibrant trading
throughout the year. Futures trading empowers farmers and growers to reduce
their price risks and make gains. Over a period of time they are educated to
share a lifelong partnership with Emkay by wisely investing their savings in
the various financial products offered.
Benefits to our Clients
"Emkay Corporate Services
Pvt. Ltd." offer you the facility to trade at two major commodity
exchanges of the country.
Multi Commodity Exchange of India Ltd
(MCX)
National Commodity and Derivative Exchange,
Mumbai (NCDEX)
Membership in
multiple exchanges gives clients the added advantage of arbitrage.
Emkay also equips you with reliable research, based on technical
and fundamental study of all major commodities.Trained professionals manning
the terminals educate the clients on arriving at the best price for them.
Emkay Share & Stock Brokers (P) Ltd is also among the leaders in the
equity and financial derivatives segment.
Very soon we would also be launching various trading strategies
to help you trade in the commodity futures segment.
Get going! To open a Commodity Derivatives
trading account with us contact us at commodities@emkayshare.com
and start trading in commodity derivatives with our cool commodity trading products!
