Nirmal BangProduct & Services

We offer a diverse range of financial services which includes institutional and retail brokerage of equity, derivatives, commodities, currency, online trading, depository services, distribution of IPOs , mutual funds, fixed deposits & bonds, dedicated desk for NRIs and institutional clients, insurance broking(both life & general), clearing services, margin financing, investment banking, portfolio management, wealth advisory & research.

Commodity Trading

  • Overview
  • Benefits
  • FAQ's

"We offer our clients commodity Trading in the commodity markets involving Grains, metals, oil, crude, etc. Our personalized services in commodity trade and investment through our competent and knowledgeable team of professionals involve trading of commodity derivatives in terms of futures and options.

We aim at providing our clients with options to diversify their wealth management portfolios with low investment and best market prices. The commodity trade in terms of futures and options generally takes place through commodity exchanges. Our services through MCX, NCDX & NMCE as well as our nationwide network and powerful research team are capable of catering to the investors with the services uniquely fitted to the requirements of exchange based commodity trades.

We provide our clients with trust based and ethical personalized services and guide them through the huge investment opportunities available in commodity market related to grains, metals, oil, crude, etc."

Our mission is to help clients in making informed investment decisions in commodity trade. Our services are aimed at assisting clients in their wealth creation through continuous research, innovation and providing the clients with phenomenal growth opportunities

A future trading eases the hassles and costs of settlements and storage for traders who do not want custody. The most lucrative element of futures trading is that it allows investors to participate and trade at nominal costs.
a) You no longer need to put the whole amount for trading, only the margin amount is required.
b) Traders can earn from short selling.

Trade in Commodity Futures

Market - Trading in commodities provides a lucrative market opportunity for investors, arbitragers, hedgers, traders, manufacturers, exporters and importers. The listed commodities include Bullion, Metals, Energy and Agri products

Exploitable fundamentals - Commodity trading operates on the simple principle that “Price is a function of Demand and Supply”. This makes things really easy to understand and exploit

Portfolio diversifier

Commodity Futures derive their prices from the underlying commodity and commodity prices cannot become zero. Commodity has a global presence and hence, it''s a good portfolio diversifier.

Extended trading hours

Indian commodity market operates for 14 hours a day covering timings of all major international commodity exchanges, thus giving traders ample time to earn profits

Option of trading in Demat form

Now, one does not need to hold commodities physically in warehouses. Now-a-days depositories offer to hold your commodities in a Demat form.

Our Value Add
  • Access your ledger balances and account information over the internet and at the branches help desk
  • Browser and application based platforms can also be made available for commodity trading
  • Free research report subscription will help in better decision making
  • SMS services for research advice to keep you abreast with your investments
  • Regular news and updates on market
  • Allows you to choose from several customized/multiple brokerage plans to suit your trading needs

Trading with us is now simple and you merely have to open an account with Nirmal Bang and then trade in any of the following 3 ways:

  • Online – On your desktop through different trading platforms
  • Call-n-Trade (for online trading clients)
  • Contact or visit your nearest Nirmal Bang branch office to place your orders.
1. What is a commodity?

A commodity is a product having commercial value that can be produced, bought, sold, and consumed. It is normally a basic raw unprocessed state but products derived from primary sector and structured products are also traded at commodity exchanges. In India, the list includes precious metals, ferrous and non-ferrous metals, spices, pulses, plantation crops, sugar, and other soft commodities.

2. What is a commodity market ?

Commodity market is a place where trading in commodities takes place. It is similar to an Equity market, but instead of buying or selling shares one buys or sells commodities

3. What are the different types of participants in commodity markets?

Broadly, the participants can be classified as hedgers, arbitragers, and speculators. In other words, manufacturers, traders, farmers, exporters, and investors are all participating in this market.

4. What are the different types of Commodities that are traded in these Markets ?

World-over one will find that a market exits for almost all the commodities known to us. These commodities can be broadly classified into the following: Precious Metals: Gold, Silver, Platinum etc. Other Metals: Nickel, Aluminum, Copper etc. Agro-Based Commodities: Wheat, Corn, Cotton, Oils, Oilseeds, etc. Soft Commodities: Coffee, Cocoa, Sugar etc. Energy: Crude Oil, Natural Gas, Gasoline etc.

5. How is trading done in the commodity exchanges?

Commodity exchanges are based on the online trading system. It is an order-driven, transparent trading platform, which is reachable to the various participants through the internet, VSAT, and leased line modes operated by members or subbrokers spread across the country.

6. What is a derivative contract?

A derivative is a product whose value is derived from the value of one or more underlying variable or asset in a contractual manner. The underlying asset can be equity, foreign exchange, commodity or any other asset. The price of derivative is driven by the spot price.

7. How are futures prices determined?

Futures prices evolve from the interaction of bids and offers emanating from all over the country which converge on the trading floor. The bid and offer prices are based on the expectations of prices on the maturity date.

8. Is delivery mandatory in commodity futures contract trading?

The provision for delivery is made in the Byelaws of the Associations so as to ensure that the futures prices in commodities are in conformity with the underlying. Delivery is generally at the option of the sellers. However, provisions vary from Exchange to Exchange. Byelaws of some Associations give both the buyer and seller the right to demand/give delivery.

9. How is it possible to sell, when one doesn’t own commodity?

One doesn’t need to have the physical commodity or own a contract for the commodity to enter into a sale contract in futures market. It is simply agreeing to sell the physical commodity at a later date or selling short. It is possible to repurchase the contract before the maturity, thereby dispensing with delivery of goods.

10. What is long/short position?

Long position is a net bought position, whereas a short position is net sold position.

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