The best option is take a delivery, pay the margin and hold the position. When there is a speculative rise and when there is a big move again you can square off the position, says Dharmesh Bhatia, Deputy Vice President-Research at Kotak Commodities Services.
when there is a market which is completely flat you have to take a delivery and hold for the market to give you a good return or a good speculative rally in the market, says Dharmesh Bhatia, Deputy Vice President-Research at Kotak Commodities Services.
According to Dharmesh Bhatia, Deputy Vice President-Research of Kotak Commodities Services, commodity market in India it is only 8-9 years old. It is a very niche market and people have no clue about how to trade in the market.
Whenever you want to invest in agri market I would suggest you to go with the contract specification, says Dharmesh Bhatia, Deputy Vice President-Research at Kotak Commodities Services.
According to Dharmesh Bhatia, Deputy Vice President-Research at Kotak Commodities Services, MCX has good volume in bullion commodities and NCDX has a good volume in agri commodities.
according to Dharmesh Bhatia, Deputy Vice President-Research of Kotak Commodities Services, we have to hedge our position into forex also. When you are doing import-export definitely when you are hedging something you have to take some amount of position, maybe 10-20 percent of your position into forex.
The cross arbitrage means first month-second month contract. It is called a spread contract where you can take a big position and you will play the gaps between the two months contract, says Dharmesh Bhatia, Deputy Vice President-Research at Kotak Commodities Services.
According to Dharmesh Bhatia, Deputy Vice President-Research of Kotak Commodities Services, a small investor investing Rs 5 lakh to take a delivery and hold the position, especially the bullion market.
According to Dharmesh Bhatia, Deputy Vice President-Research of Kotak Commodities Services, agricultural commodities has a delivery contract of every 20th of every month. So on every 10th there will be a call from the broker.
According to Dharmesh Bhatia, Deputy Vice President-Research of Kotak Commodities Services, whenever you want to take a delivery, I would suggest you to go for a contract note specification.
According to Dharmesh Bhatia, Deputy Vice President-Research of Kotak Commodities Services, one should invest 40-60 percent in bullion markets especially gold.
According to Dharmesh Bhatia, Deputy Vice President-Research of Kotak Commodities Services, the nationalized broker takes 2-3 percent extra margin for safeguarding the client and suggests investing in gold.
According to Dharmesh Bhatia, Deputy Vice President-Research of Kotak Commodities Services, as of now the amount of margin which we would like to invest in commodity market is not less Rs 3-5 lakh. I would not suggest going below that amount.
According to Dharmesh Bhatia, Deputy Vice President-Research at Kotak Commodities Services, there are certain commodities that have delivery and certain commodities that don't have delivery. Even though if there is a delivery contract you will get intimated by the broker itself.
Dharmesh Bhatia, Deputy Vice President-Research at Kotak Commodities Services advises to keep an eye on factors like geopolitical tension, rupee fluctuation and any of the demand-supply changes who want to invest in commodity market.
Dharmesh Bhatia, Deputy Vice President-Research at Kotak Commodities Services advises how to deal with commodities in volatile environment.
Commodities trading is a universe of choices and opportunities, but one that calls for well-researched and calculated risks that can make your portfolio very profitable.