NCDEX Tips for Commodities

Know why to get NCDEX Tips from Sharetipsinfo for sure returns!!!

What you need to know about the NCDEX and trading on it?

Contrary to the belief held by many people trading in commodities can be extremely beneficial. Many people tend to believe that if they trade in commodities, they will end up with a truck load of useless things in their front yard. However, nothing can be further from the truth, because normal people who trade commodities are never involved in the actual selling of these commodities. Only commercial players have to bother about the sale of these commodities.

The NCDEX or the National Commodity and Derivatives Exchange Limited in India is an online exchange dealing in multiple commodities. It is a private limited company and was incorporated as such on April 23rd 2003, under the Act for Companies which was made a law in 1956. It got a certificate allowing it to start business on 9 May 2003. It started its operations on December 15th, 2003. The NCDEX is a private company and is held very closely. IT is being actively promoted by institutions at the national level. It has a board of directors that is independent of any other organization. The company is made up of professionals and does not have any vested interest in the commodities market.

Its shareholders include Life Insurance Corporation of India, National Stock Exchange of India, Punjab National Bank, CRISIL, Canara Bank and many other prominent organizations. The NCDEX has it share of regulations placed on it by the Forward Market Commission when it comes to futures trading in commodities. Along with this NCDEX has to follow several laws and regulations like Stamp Act, Companies Act, Forward commission Act, Contracts Act etc. The efficacy of these regulations placed on the NCDEX can be understood by the fact that the FMC found the company of being in violation of settlement price norms on 3rd February, 2006, and ordered the exchange to fire one of its executives which was done promptly. The head office of the NCDEX is in Mumbai and it has more than 550 centers all over India.

Why trade on NCDEX?

An exchange like NCDEX provides a proper structure to the otherwise haphazard commodities market. At the same time it is an online exchange and hence you will get the most updated real time information about the prices of commodities and the rises and falls in various commodities with the help of this online exchange.

Although many people consider commodities to be very volatile, the fact is that they are no more volatile than stocks and shares and on the NCDEX it becomes even simpler to keep track of your investments and how they are faring in the market. On the NCDEX you can trade in a wide variety of commodities including, Cereals and Pulses, Fibres, Oil and Oil seeds, Spices, Plantation products, Agricultural products like potatoes, Non agricultural products like Precious metals, metals like steel and copper, Crude Oil, Chemical products etc.

At the same time NCDEX provides an agricultural commodity index which is one way of knowing the information about the various products. This index is called DHAANYA and is a value weighted index. It is calculated in real time with the help of the prices of the 10 most liquid commodity futures, which have been traded on the NCDEX. Hence this index provides a benchmark for agricultural commodities in India that is quite reliable and guides the people who are looking forward to trading in these commodities.

What you need to know about the NCDEX and trading on it?

The commodities market is as volatile as the stock market, hence while on one hand you stand to gain a lot of profit by investing in commodities, you may also suffer huge losses if you do not know your way around the market. This is the reason that especially the people who have just started trading commodities need some kind of guidance when it comes to investing their money wisely.

The website of Sharetipsinfo provides this guidance in the form of tips, which help investors to make the right choices. These tips also provide guidance on how to distribute your investment in various commodity futures rather than dumping all your money in a single on which could be like gambling. There is only a small factor of luck in these investments and the rest is proper knowledge and wisdom. This is what the website of Sharetipsinfo helps you to gain. In order to understand the benefits of this company and its website, you can fill up a simple online form and take a free trial.