Commodities are raw materials, metals or agricultural products that are electronically traded in exchanges, just like equities. Historically commodities market moves in opposite directions to stock markets, providing excellent wealth creation opportunities. Scroll through the page to know more about commodities.
Investing in multi-asset classes bring you an opportunity to safeguard your capital and reduce up the risk of losing big
Derivatives (Future and Options)
You can trade in stocks and commodities using the Futures and Options for respective Stocks, Index and Commodity
Trade with Margins
Get additional margins to capture market opportunities
Our research team is dedicated to give you investment calls in both for long-term wealth creation
Trading in commodities allows you to reduce your exposure in case of any adverse price movements by taking an offsetting position using Futures/Options
Gets detailed and real-time Buy/Sell for commodity trading ideas
Level up your knowledge in commodity trading with RING Academy’s expert sessions
Seamless Fund Transfer
With a 3-in-1 account you can seamlessly transfer funds to trade directly from your bank account
From explaining how to activate your commodity segment, how to place your first trade, account related queries, you have our support at every step
Our latest RING platforms bring you a seamless investing experience that is safe, fast and convenient
The Flexi Plan is our coolest offering which empowers you trade in commodities at just Rs. 10/order* and potentially gain maximum from the market opportunities.
How to place your first trade in commodities using web platform
How to place your first trade in commodities using RING mobile
How to enable your commodity segment
You can place commodity trades only through web on www.axisdirect.in (either on desktop or laptop) and/or through central dealer trading desk on 022-42274564.
Any Axis Direct customer can avail Commodity Derivatives facility through a simple one-time online registration process https://tinyurl.com/y8wpwhpx and within 48 hours you will be provided rights to trade in commodity derivatives. In case, you are not an existing Axis Direct customer, you can open your account here
Once the commodity rights are enabled, you can use the same login credentials of Axis Direct and access commodities platform with streaming market watch and real-time market information.
The one-time online registration process does not require additional physical documentation. The online registration captures 3 additional fields like
• Years of experience in Commodities Trading
• GST No (only if applicable)
• Nomination details (only if it differs from existing Axis Direct account)
To open a Commodity Derivatives Account, you need to open a 3-in-1 account first. In case you don't have an account, you can register your request https://simplehai.axisdirect.in/open-account
Once 3-in-1 Account is opened, you can place online request through a one-time online registration process and within 48 hours the commodity derivatives rights will be enabled.
No. Existing Demat & Bank Account will be linked to Commodity Derivatives Account
No. NRIs are not allowed to open Commodity Derivatives Account.
This predominantly depends on the exchange you are trading in. In India, commodity trading is predominantly done on two exchanges: Multi Commodity Exchange (MCX) and National Commodity & Derivatives Exchange (NCDEX). The following commodities are actively traded in these two Exchanges:
Multi Commodity Exchange (MCX)
• Bullion: Gold and Silver
• Metals: Aluminum, Copper, Zinc etc.
• Oil and Oil Seed: Refined Soy Oil, Soy Bean etc.
• Energy: Brent crude oil, Crude oil, etc.
• Other commodities: Urad, Chana, Wheat, Guar Seed, Sugar, Potato etc.
National Commodity & Derivatives Exchange (NCDEX)
• Bullion: Gold and Silver
• Metals: Aluminum, Copper, Nickel, Sponge iron and Zinc.
• Oil and Oil Seed: Castor oil, Crude Palm oil, Soy Oil, Soy Bean etc.
• Energy: Brent crude oil, and Furnace oil.
• Agro Commodities: Cotton, Chana, Maize, Guar seed, Sugar, Rubber, etc.
For a list of newly listed commodities, please visit www.mcxindia.com and www.ncdex.com
Currently, Commodity Derivatives Trading is enabled only for 'The Multi Commodity Exchange of India Ltd (MCX)'. MCX has the majority market share of close to 90% in commodities and therefore it becomes the most important exchange from the market depth perspective. We are already in the process of extending this facility to trade through 'The National Commodity and Derivative Exchange' (NCDEX) shortly.
Below are market timings for Commodity Derivatives Trading.
|Agricultural(Agri)-MCX and NCDEX||9 am to 6.00 pm|
|Internationally link Agri (Cotton, CPO, SYOREF etc)||9 am to 9.00pm|
|Other Commodities (Gold, Silver, Crude etc)||9 am to 11.30/11.55 pm|
No, due to probable illiquidity in far month contracts, only near (1st) and middle (2nd) month contracts are available for trading for most of the underlying contracts.
The products offered by Axis Direct for Commodity Derivative Trading are Intraday & Carry Forward.
No. As of now you can place online fund hold request from the mapped Bank Account, post which you get limits to trade in commodities based on prescribed margin required.
• For Intraday Product - only Span Margin will be charged
• For Carry Forward product - Exchange defined margin + Span Margin + Extreme Loss Margin + other regulatory margins will be charged.
Mark-to-Market is a process by which the open positions in commodities are revalued on intraday basis taking into consideration the Latest Traded Price (LTP) of the commodities. On the day you enter a futures contract, Mark to Market or MTM is the difference between your entry value and the day's closing price. In the case of a carried forward position, it is the difference between the day's market price and the previous day's closing price.
If the MTM % falls below the threshold% (65% to 70%) of the net margin deposit available with Axis Direct, then the customer needs top up the funds immediately, failing which Axis Direct will square off the open position.
Yes. Axis Direct informs regarding margin shortfall and mark to market losses through email but exceptionally if the situation so arises then as a risk containment measure, open position(s) can be squared off even without informing the customers.
When you trade in the Commodity Futures market, you have a standardised contract in terms of common quantity and one can only trade in multiples of this quantity or lot. This is called Lot size.
This is when you want to close your current Contract and entering a similar contract due for another month.
Customer will have to square off all intraday open positions as per the below market timings on the same day itself, failing which Axis Direct will square off the Intraday Open positions, on best effort basis.
|Commodity||Market Time||Auto Square Off Timer (Intraday Product)|
|Agricultural(Agri)-MCX and NCDEX||9 am to 6.00 pm||5.30 pm|
|Internationally link Agri- MCX and NCDEX (Cotton, CPO, SYOREF etc)||9 am to 9.00pm||8.30pm|
|Other Commodities(Gold, Silver, Crude etc)||9 am to 11.30/11.55 pm||11.00 /11.30pm|
All commodity contracts are cash settled in Axis Direct. This means that you can get out of a contract, without taking the delivery of the commodity. You can simply pay the difference between the Buy and Sell contracts in cash. You need to square off or rollover the open position on or before start of Tender period.
Tender period refers to the time period just few days before the expiry of the contract. Customers need to square off or rollover the open position on or before start of Tender period to avoid physical delivery of commodity being marked during tender period.
No. You will have separate limit for Commodity Derivatives Account and for all other products including equity, equity derivatives, mutual funds etc there would be a single combined limit.
No. Since, we have separate limit for Commodity Derivatives Account, you cannot use its equity sales proceeds to trade in Commodity Derivatives and vice versa. However, the combined limit is applicable for non-commodity derivative products and therefore sales proceeds can be utilized against them.
For an existing AxisDirect customer, there are no additional Account Opening charges for Commodity Derivatives Trading. As an introductory offer, till 31st March 2019, FLAT 0.03% brokerage (or Rs 25 per order whichever is higher) will be charged for trades in future contracts whereas Rs 50. per lot will be charged for Option trades..
Axis Direct is a brand under which Axis Securities Limited offers its retail broking and investment services. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. This information is only for consumption by the client and such material should not be redistributed. Disclaimer & Statutory Information