In case it is performing a trade or purchasing or selling any transaction that is undertaken in the stock market is marked by the involvement of a broker who performs as an agent within the ambit of the market and the market participants. The individuals that are registered under exchanges which are regulated via Securities and Exchange Board of India- SEBI are called brokers. At present, it is the business of retail brokerage that has been categorized into two broad classes that are to say full-service brokers and discount brokers. It is indispensable for every investor to make out previous to picking any of the two brokers first and foremost figure out between the given choices by drawing a comparison concerning their services, charges, clauses in connection with opening balance, etc.
Advisory brokers or full service or traditional brokers are persons who proffer advice or give advisory and permit conveniences in the stock trading, commodities, and currencies. In this class of brokers, there is the practice of receiving commissions by means of the percentage that is charged upon total trade value that is ordered by their clients. The advisory brokers do perform out of many offices and branches all over the country at the places where their clientele can drop in to inquire. You come across in India a number of companies that carry out services as advisory brokers.
MCX is the operator on the commodity exchange where the traders deal in various commodities allowed by the regulator. The margin money is the amount that the trader has to deposit with the service provider on the basis of which the credit line is opened, and one can start trading. The MCX margin money varies from commodity to commodity and type of item in which one wants to trade. There are contracts for a fixed period in each commodity and one can enjoy the time frame still the expiry date of the contract. However, before the expiry of the same one has to square off the position.
The expiry date is already mentioned in the system while one goes for the contract. Hence one can have a clear idea by when he needs to book the profit or set the limits for stop loss. While going for the trades here, one must keep in mind that there needs to have certain calculations in his mind on the basis of which he trades as speculation can lead to a massive loss where one may lose the margin money and adding to that has to pay to the service provider which means only a loss.
How to trade:
For this type of trades, one needs to have a commodity trading account where he can trade during the market hours. One can choose any commodity available in the commodity market to go for and buy or sell the same as per his strategy and calculation. If one knows the market well, there is no doubt that it can offer amazing profit also.