Tag Archives: ncdex

Why Should you Opt for a Career as Commodity Trading Advisor?

A commodity trading advisor is one knows the ins and out of commodity trading. He an expert and has thorough knowledge about stock market. The advisor is trained to understand the fluctuations and trends about market. They can predict the commodity pricing based on the study and research. Basically they are employed in firm that deals with commodity or as consultant. They can also their own business in their own area. Let us understand the job profile of commodity trading advisor.


 Job Profile of Commodity Trading Advisor


 At the onset of the day the trading advisor he prepares the chart on every commodities listed in the stock market. As the modifications take place throughout the day, he updates these charts. The chart consists of commodity details. For example if he prepares the details on a commodity named wheat then  the graph would represent movement, trends of past crops, expect production of the crop in current year and in next five years. The scenario related to import and export and the government policy pertaining to that crop. Added to all these, the technical advancement pertaining to that crop to increase it production.


When the commodity trader advisor has finished doing all these he shares his knowledge on how to invest better? He has his list of clientele that take advice from him to ensure that their investment is done on the commodity that would give them the best returns. As an investor you can take advice from him before betting on any commodity but there is no full proof guarantee that commodity would rise in that expected graph. Thus they always advice their clients about the risk associated with it.


Commodity Trading Advisor Course in India


Today there are many institutes in India that provide course on commodity trading. Most of the aspirants go for short term course that covers all main topics so that the students are well conversant with the terminologies. Nowadays it is one of the newest subjects in stock market so most of them might not be aware of it. But this subject has its foot hold in nineteenth century in American future markets and Asia rice trading Companies.


In India this subject witnessed a major swing as a steep inflation was caused by credit crunch. This was the time when investors realized its importance of this historic trading system. Today commodities like oil and gold have dominated the share market and people invest in such items. As a student of this subject you will be provided technical knowledge on this so that you have a thorough knowledge about trading commodities. Mostly all financial institutes organize a fortnight course so that the students pursuing this can prepare a mock commodity profile which are based on the actual trend of the market.


Commodity Trading Modules


Here is what the module of trading commodity consists of:

  • Regulation and laws
  • Commodity pricing
  • Exchanges
  • Utility of commodity futures
  • Understanding derivatives with application
  • Trading procedures
  • Implications of sales tax
  • Settlement
  • Clearing
  • Trading strategies to manage risk


 India’s National Commodity Exchanges

In India there are 3 major national commodity exchanges and 18 domestic commodity exchange.  These are National Multi Commodity Exchange of India Ltd, National Commodity and Derivatives Exchange Limited and Multi Commodity Exchange of India Ltd

National Multi Commodity Exchange of India Ltd – NMCEIL: This is one of the India’s first de-mutualised online multi-commodity exchange. It came into existence on 20th Dec 2001 but began its operations on November 26th 2003. Its list of promoting and managing institutions consist of Neptune Overseas Limited, National Agricultural Cooperative Marketing Federation of India Limited – NAFED, National Institute of Agricultural Marketing – NIAM, Central Warehousing Corporation – CWC, National Agricultural Cooperative Marketing Federation of India Limited – NAFED and  Gujarat State Agricultural Marketing Board – GSAMB

Multi Commodity Exchange of India Ltd – MCX:  It is an independent multi commodity exchange which headquartered in Mumbai. This was established in the year 2003 and is government recognised organisation. It facilitates online trading, settlement trading options and clearing. This exchange house also opportunities for traders, corporate houses, importers, exporters, regional trading centres, production and processors as well as Industry Association and Institutions.

National Commodity and Derivatives Exchange Limited or NCDEX is an online multi commodity exchange and is regulated by Forward Market Commission which does future trading commodities. It is also subjected to the laws of the country.


                                    Trade in Share Market and start earning today.