How to Start Commodity Trading in India: Step-by-Step Guide

Are you curious about commodity trading and want to know how to get started in India?

Whether you’re looking to trade gold, silver, crude oil, or agricultural goods, commodity trading offers exciting opportunities to diversify your portfolio, hedge against inflation, and capitalize on global market trends.

In this step-by-step guide, we’ll walk you through everything you need to know to start commodity trading in India — even if you’re a complete beginner.

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💼 What is Commodity Trading?

Commodity trading is the buying and selling of raw materials or primary goods such as metals, energy products, and agricultural items. Rather than trading the physical commodities, retail investors trade futures contracts on exchanges like:

• MCX (Multi Commodity Exchange)

• NCDEX (National Commodity & Derivatives Exchange)

These contracts allow traders to speculate on price movements without actually owning the physical goods.

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✅ Why Should You Start Commodity Trading?

• 🔹 Diversify your portfolio beyond stocks and mutual funds

• 🔹 Trade in globally relevant assets like gold and crude oil

• 🔹 Hedge against inflation

• 🔹 Use leverage to control large positions with small capital

• 🔹 Take advantage of price volatility and global news

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🧭 Step-by-Step Guide to Start Commodity Trading in India

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Step 1: Choose a SEBI-Registered Broker

The first step is to open a commodity trading account with a SEBI-registered broker like Market Trade.

Make sure your broker offers:

• Access to MCX and NCDEX

• Real-time charting tools and indicators

• Easy-to-use mobile & web platforms

• Transparent pricing with no hidden fees

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Step 2: Complete KYC and Open a Trading + Demat Account

To begin trading, you’ll need to:

• Submit PAN, Aadhaar, and bank details

• Complete video or physical KYC

• Open both commodity trading and demat accounts

With platforms like Market Trade, this entire process is 100% online and takes less than 15 minutes.

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Step 3: Fund Your Account

Once your account is active, deposit funds through:

• UPI

• Net Banking

• NEFT/RTGS

• Crypto (if supported by your broker)

🪙 Starting capital can be as low as ₹1,000, but ₹5,000–₹10,000 is recommended for better flexibility.

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Step 4: Learn About the Commodities You Want to Trade

Familiarize yourself with commonly traded commodities:

Understand what factors influence their prices — such as global demand, currency movements, weather conditions, and geopolitical news.

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Step 5: Use a Demo Account (Optional but Recommended)

Before risking real money, use a demo account to:

• Practice trades with virtual funds

• Understand market movements

• Test your strategies

Market Trade provides a free demo platform for beginners.

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Step 6: Place Your First Trade

Once you’re confident, log in to your platform, and:

1. Select a commodity (e.g., Gold Futures)

2. Choose the contract based on expiry date (e.g., Gold April 2025)

3. Decide your lot size

4. Place a buy or sell order

5. Set a stop-loss to manage your risk

6. Book profit when your target is hit!

📌 Most contracts on MCX are settled in cash — no need to take physical delivery.

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Step 7: Track Your Trades & Stay Informed

Successful commodity traders constantly monitor:

• Live market prices

• Economic news & global reports

• MCX updates

• Technical indicators (RSI, MACD, Bollinger Bands)

Use tools like:

• Market Trade live charts

• Economic calendars

• News portals like Bloomberg, Reuters, and MCX India

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📅 MCX Trading Timings (India)

💡 Evening sessions are best for trading globally-linked commodities like crude oil and gold.

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📈 Pro Tips for New Commodity Traders

✅ Start with one or two commodities
✅ Stick to major contracts like Gold, Crude Oil, or Silver
✅ Use technical indicators + global news for better decisions
✅ Don’t trade during major event volatility without preparation
✅ Keep a trading journal to improve your performance

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🚀 Ready to Start Trading Commodities?

At Market Trade, we make commodity trading easy and accessible with:

• Instant account opening

• Access to MCX with real-time tools

• ₹0 hidden charges

• Crypto deposit options

• 24/5 support for Indian traders

👉 Create your free account today and start trading the commodities that move the world!