Commoity - Risk-and-Services


How can I cover my risk in commodity?
Trading/investing in Commodity Derivatives involves considerable risk. It is not ideal for all types of investors, but seeking professional assistance before taking positions and maintaining strict stop losses could reduce the risk in commodity trading.
Is commodity trading is suitable for a retail investor?
Yes, but retail investors should understand the risks and advantages of trading in commodities futures before taking a leap.
What is margin?
Margin is the amount which is required in advance to accomplish trades on the exchanges.
To know the margin of various commodities: http://geofin.co.in/Download
What is market volatility?
Unprecedented moves in prices are often referred to as Market Volatility or in other words, when the price moves vigorously and unpredictably.
What is MTM?
At the end of every trading day, the margin account of the trader / client is adjusted to reflect the participant’s gain or loss. The price changes on the close of every trading day may result in some gain or loss as compared to the previous day’s closing price. These price variations are netted into the daily margin account. This process is known as marking to the market.
Commoity - Risk-and-Services Commoity - Risk-and-Services Reviewed by Money99 on 11:29:00 Rating: 5

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