Price Of Commodities Biography
rks there gave me a tutorial and PDF files so I could learn and understand the business (read How to trade in Futures and How commodity trading works to grasp the basics).
There are two things you must know.
First of all, when you buy a Futures contract, you don't pay the entire value of the contract, just a margin.
Let's say someone is selling a Gold Futures contract of 100 grams of gold that is worth Rs 72,000. If I buy it, I will not have to pay the entire amount. The exchange will set a margin at, say, 3.5%. This means I pay just Rs 2,520 to buy it (3.5% of Rs 72,000).
Secondly, you make and lose money on a daily basis. Here's an example that assumes I have bought that Gold Futures contract:
Let's say the price of gold rises to Rs 73,000 per 100 grams the next day. I make Rs 1,000 (Rs 73,000 – Rs 72,000) and the amount is credited to my account.
The day after, the price of gold dips to Rs 72,500 per 100 gms. I lose Rs 500 (Rs 73,000 – Rs 72,500) and the amount is debited from my account.
I guess you must have got the hang of it by now.
After a week of poring over all the literature, I opened an account with the commodity broking firm. They would invest my money based on the decisions taken by their research team.
Price Of Commodities
Price Of Commodities
Price Of Commodities
Price Of Commodities
Price Of Commodities
Price Of Commodities
Price Of Commodities
Price Of Commodities
Price Of Commodities
Price Of Commodities
Price Of Commodities
Price Of Commodities
Price Of Commodities
Price Of Commodities
Price Of Commodities
Price Of Commodities
Price Of Commodities
Price Of Commodities
Price Of Commodities
Price Of Commodities
No comments:
Post a Comment