The 9th episode of the Learn2Trade series is the first installment of the fundamentals of commodities trading. Part one of the commodity trading video will cover the basics of commodity trading to the technical analysis of commodities. According to Mr. Bajaj, starting in the commodity market provides a solid foundation for trading as it simplifies trading in the equity market, and provides valuable insights into the trading game. 

Mr. Bajaj will discuss the importance of commodities trading and how you can benefit from it in greater detail. In simple terms, he explains that commodities are natural resources with utility value, like gold or copper. They can be consumed directly or indirectly. Direct consumption includes agricultural products, while indirect consumption involves using commodities to produce other goods, like electronic wires made from copper.

Watch this 9th episode video for a free and in-depth beginner's guide to commodity trading

What You Will Learn

Commodities trading can be challenging, but it offers a treasure of valuable learning experiences. It's a great instrument for building a strong foundation in trading, even better than equity in some respects. In this episode, Mr. Vivek Bajaj will explain the basic concepts of trading in the commodities market to understand their significance in the current market scenario. He, focuses on the importance of studying past market data, especially paying attention to price changes and trading volumes, to predict future price movements effectively.

The commodities market offers tools like forwards and futures contracts to manage risks. Forwards are flexible contracts agreed upon by two parties, whereas futures are standardized contracts traded on exchanges like MCX (Multi Commodity Exchange) and NCDEX (National Commodity and Derivatives Exchange) in India.

According to Vivek Bajaj, tracking a few parameters when trading commodities is important. He presents key concepts like Quanda, a term used in commodities trading, spot price, which is the current market price for immediate delivery, and commodities delivery time, which is the time it takes for a product to be physically delivered. These elements show an important effect on commodity pricing. 

Trading in commodities market is becoming popular in India, especially since gold holds cultural importance. Using gold as an example, Vivek Bajaj talks about all the different ideas and aspects of commodity trading in Indian and international markets that affect the price of gold. To precisely track its movement, you need to follow the spot price, futures price, and international pricing. Moreover, factors like currency exchange rates also impact commodity prices, making it essential to track them as well. 

In a nutshell, commodities trading offers a unique learning experience and can be a valuable starting point for anyone looking to build a career in trading. To gain a deeper understanding, make sure to watch the video and prepare yourself with the correct knowledge to start trading in commodities successfully.

Stay tuned for more insights into the world of trading in the upcoming videos