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Commodity Market

India has a deep ingradined 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 our country, Multi Commodity Exchange of India (MCX), National Commodity and Derivatives Exchange Ltd. (NCDEX) and Indian Commodity Exchange Ltd.(ICEX) are the three state-of-the-art commodity trading platforms for Futures Trading which commenced operations in November 2003, December 2003 and November 2009 respectively. All three are national level, hi-tech driven and online commodity exchanges, which provide a very wide spectrum of derivatives driven by best global practices, professionalism and transparency for all market participants. Both – MCX & NCDEX – are headquartered in Mumbai and ICEX in Gurgaon are led by expert Management Teams with deep domain knowledge of commodity futures market having integrated dedicated resources and infrastructure.

This Commodity segment has proved to be one more pillar of strength of the SHRIAM GROUP, and this has been made possible due to the positive and enthusiastic response from our Business Associates and our retail clientele spread over many trading centers in multi-states.

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. Also compared to equities it is much cheaper to trade in commodities, where margin requirements are lower.

BSE CM : INB 011229938
BSE FO: INF 011229938
NSE CM : INB 231229932
NSE FO : INF 231229932
NSE CURRENCY : INE 231229932
MCX SEBI REG NO : INE 261229932
ICEX : 1011
CDSL DP NO : 12044900
CDSL : IN-DP-CDSL-350-2006
ARN NO : 78125
SEBI Registration no. of USE : INE271229937
SEBI Registration no. of BSE Currency : INE011229938
FMC Reg. no. of ACE : ACEL/TCM/PART/0265
Member Code of ACE : 6096
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