buy/sell a commodity at a future date at fixed price & defined quantity.
largely categorized into bullions, metals, agriculture and energy.
diversify investments other than shares, precious metals, currencies or land
Different Commodities Traded
Precious Metals - Gold & Silver Industrial Metals - Aluminum, Copper, Lead
Natural gas, Crude oil.
wheat, corn, soybeans, cotton, sugar, coffee, cattle, etc.
What are Commodities?
Commodity is a product used or consumed in everyday life. A commodity is a physical good with a certain economic value. It can be easily purchased, sold, traded, used, produced and stored.
Commodity trading Advantages
Commodities are often seen as a hedge against inflation since their prices tend to rise when the cost of living increases.
Trading commodities provides an avenue to inventors to diversify their portfolio in different classes of asset other than stocks, mutual funds or bonds to spread the risk.
Future Contracts in highly traded commodities offer high liquidity along with returns.
Producers and sellers of commodities hedge the risk of volatile price movements by buying and selling future contracts.
Commodity prices are highly sensitive to geopolitical events and economic factors. A war or pandemic like situations cause high price fluctuations.
Commodities have a higher volatility compared to other assets like stocks and bonds, making it difficult to predict future movements.
Why open a Commodity trading
account with AsthaTrade
Rs 20 per order for Commodity Futures.
Rs 20 for Commodity Options
Free & Quick Demat
Zero charges for demat account opening
Account Opening Process
Same day account opening and
One platform for stocks,
How to invest in
Click here and fill in the required details for opening an online commodity trading account. Select Derivatives as a segment.
Upload your documents. Submit Income proof additionally for Derivatives segment.
After verification, your account is activated and you can login to start online commodities trading.
Documents required to
To open an online commodity trading account, following documents are required
Type 1 : Proof Of Identity
Type 2 : Proof Of Address
Type 3 : Proof Of Income
available in India
Commodity trading in India is carried out on commodity exchanges which are regulated, secure and recognised. Mainly, commodity trading is done through MCX and NCDEX in India. Online commodity trading in India has gained popularity due to easy access and user friendly apps.
Following are the national commodity exchanges in India:
MCX (Multi Commodity Exchanges of India Ltd)
NCDEX (National Commodity and Derivatives
ICEX (Indian Commodity Exchange)