CLOSE X

HomeSmart Services

Commodity

Why Invest in Commodities?

Hedging : price risk management Commodity derivatives is an effective tool for producers, consumers, suppliers etc of the related commodities to hedge their risk and protect themselves against unexpected and uncertain volatile price movements by monitoring commodity news and commodity charts. They can hedge raw materials/ finished goods and/or inventories: e.g. A gold jeweler may buy future contracts and fix his cost price of buying gold which would be used to make jewelry.

Direct exposure: The commodity derivatives market offers an alternative to directly trade in commodities rather than in the companies that deal in those commodities.

Simple analysis: It is much simpler to understand the impact of major economic factors that affect the commodities prices thereby making it easier for the trader to take a holistic view on the market, based on one’s analysis about the economic data, demand, supply etc. As compared to forecasting the price of the shares of a company which depend on various factors beyond demand and supply of the products they manufacture and sell. Commodity trading and price forecasting also can get a lot more efficient based on simple technical chart patterns and analysis

Leverage: small investment & bigger return potential: Derivatives, being a leveraged product , require only a small sum of money to enter into contract there by making the return on investment potential high in case of a profitable view these derivatives can be seamlessly traded/executed through our efficient online commodity trading platform

Portfolio diversification: For investors, commodity trading can also be an attractive and alternative asset class to diversify their portfolios in order to bring some stability to the portfolio. Commodity prices especially gold has been observed to have an inverse correlation with the stock markets, and the us dollar indicating that it is an asset looked upon as a safe haven against financial, economical and geo - political tensions. . It is also considered as an alternate currency and a hedge against inflation.

Badjate Stock & Shares Pvt. Ltd.
201, Mangalam Arcade,
Above Venus Book Centre, Dharampeth Extn. Nagpur - 440010 Maharashtra, India.

NSE Member Code 14845 BSE Member Code 6287 SEBI REGISTRATION NO: INZ000190232 in NSE, BSE AND MCX CDSL DP ID 77800:IN-DP-CDSL-393-2018

Filing complaints on SCORES Easy & quick

  • > Register on SCORES portal(https://scores.gov.in/scores/Welcome.html)
  • > Mandatory details for filing complaints on SCORES
    • Name
    • PAN
    • Address
    • Mobile Number
    • E-mail ID
  • > Benefits:
    • Effective communication
    • Speedy redressal of the grievances
ATTENTION INVESTORS|KYC |IPO

© Badjate Group 2018

Designed, Developed & Content Powered by  Accord Fintech Pvt. Ltd.