Commodity trading has emerged as one of the most popular ways to diversify investment portfolios in India. From precious metals like gold and silver to energy products such as crude oil and natural gas, commodities offer traders exciting opportunities to hedge risk and benefit from global price movements.
In this guide, we explain what commodity trading is, how it works in India, the benefits, and how online platforms like ATS Share Brokers make it easier to get started.
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Commodity trading refers to the buying and selling of contracts based on physical goods such as metals, energy products, and agricultural commodities. Instead of trading the physical product, investors usually trade futures and options contracts, which represent an agreement to buy or sell a commodity at a future date at a predetermined price.
In India, commodity trading is regulated by SEBI (Securities and Exchange Board of India) and takes place on recognized exchanges such as MCX (Multi Commodity Exchange) and NCDEX (National Commodity & Derivatives Exchange).
A traditional safe-haven asset and inflation hedge
Used both as a precious metal and industrial commodity
Highly volatile and influenced by global events
Popular among short-term traders
Many platforms also offer mini contracts, allowing traders to participate with smaller capital.
Commodities behave differently from stocks and bonds, helping reduce overall portfolio risk.
Prices of commodities often rise during inflation, protecting purchasing power.
Commodity markets operate for longer hours, allowing flexibility for working professionals.
International demand, supply disruptions, geopolitical events, and currency fluctuations can create strong trading opportunities.
Once activated, you can start trading futures and options contracts directly online.
Yes. Commodity trading in India is completely legal and regulated by SEBI. All contracts are traded on recognized exchanges like MCX and NCDEX under strict regulatory supervision.
However, most retail trading is done through cash-settled contracts, meaning positions are squared off before physical delivery takes place.
Brokerage charges for commodity trading are generally similar to equity derivatives. In addition, traders pay:
Always check your broker's fee structure before starting.
Diversify your portfolio with Gold, Silver, Crude Oil & Natural Gas.
Trade on MCX & NCDEX
Low and transparent brokerage
Advanced web & mobile platforms
Margin trading & pledge facility
Daily research & trading tips
Modern trading platforms like ATS have simplified commodity trading by integrating it with equity and derivatives trading accounts.
Commodity trading in India involves buying and selling futures and options contracts of commodities such as gold, silver, crude oil, and natural gas on exchanges like MCX and NCDEX.
Yes, commodity trading is legal and regulated by SEBI. All trades are executed through authorized exchanges under strict regulatory supervision.
You can start commodity trading with a small amount by trading mini or micro contracts. Margin requirements depend on the commodity and contract type.
A good commodity broker offers low brokerage, fast execution, advanced platforms, and strong research support. ATS Share Brokers provides all these features for smooth online commodity trading.
Yes, beginners can start commodity trading by learning basic concepts, starting with small trades, and using guidance from expert brokers like ATS Share Brokers.
Most retail traders trade cash-settled contracts and do not take physical delivery. Positions are squared off before delivery.
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