The share market is highly popular among traders and those who want to make some additional money with the help of their knowledge of market. There is another wonderful option in the market which is known as commodity market. Here one can trade in different commodities and if one wants can take the delivery of the commodity also. In this market one can trade in corn, wool, crude oil or even precious metals such as silver and gold. It all depends on one’s interest and vision to make profits. In this market also one needs to have margin money in account and also check for the commodity brokerage calculator to have a fair idea of getting profit with each trade.
The trading in commodity market:
Trading in commodity market is though much similar to the share market and at the same time much different also. Here one can have spot option as well as delivery option. The market of this segment opens even for six days of week and also has got longer hours of operation than the share market. However, in this market one cannot see much fluctuation which is common in share market usually. The traders here need to have vision of prices of various commodities. The rates of these commodities keep on changing and for the same one needs have better idea about the rates. The account for the commodity trading is also a different one than the share trading.
The brokerage:
In this type of trade also one needs to pay the brokerage to the broker. It can be counted as a flat rate on transaction, turnover or even a definite amount per trade which varies from the broker to broker. Here one can also have options for trades such as futures which can help one go for a contract for particular period. If one goes for regular trading in commodity market it is essential for him to check the rates of brokerage with different brokers in the market. In this type of trades one can find a huge turnover as the contract size or lot size is larger. Hence a small difference in brokerage rate may result in a large difference of brokerage amount that one must take into consideration before going for account opening with any broker in this segment.
The online trading:
Nowadays one can also go for online commodity trading where he is provided with the software or app to trade in. The concerned software or app shows the live rates of the market only and one can easily trade from there. However, for this sort of trading one needs to have better connectivity of internet and perfect condition of computer or smartphone. The rate of brokerage may be lower in the online trading of commodities compared to the offline trading in this market. The trading in this market can be possible only with the skills and research of traders. One must not go for use of any type of tips offered by any research agencies in the market.