The stock cash market

When one buys shares in the stock market as per the commodity tips provided by his advisor, he becomes the owner of those shares until he squares them off. Delivery service is also available in the stock market i.e. if one doesn’t sells the shares within two days, details of profit or loss attained is visible in the account dashboard. The shares that one purchase can be hold for life time or can even be passed to next generation. This is called trans-generational property of stocks in the cash market. All the profit and losses that a company faces, the shareholder become a part of it. Risks are an inevitable part of trade. Cash market is less prone to risks as compared to option market and future market. This is because, one can hold stocks for an indefinite time period and can sell them off when the prices are high. In cash market, one has to pay the entire amount of the purchase of shares unlike derivative market where only a marginal amount is paid as a token amount to carry out the entire trade.

Stock market is a volatile place where nothing is certain. Certainties as well as uncertainties are looked with contempt by the traders in the market place. To meet all those uncertainties, one has to have an in-depth knowledge of all on goings in the capital market as well as be able to estimate the near future statics of the market. This is not possible for everyone to do so, this simply connotes that not everyone can trade in stock market. This is completely a wrong myth prevailing in our society. Even the newbie can enter the market and trade without being duped to the sordid side of the road; reason being the origin and expansion of great research houses like 24 carat financial services which provide accurate and precise MCX gold tips to ease your trading life. These research houses and advisories are SEBI registered and aimed at providing best services to the investors and traders in the stock market, whether they are experienced, newbie, amateur or a professional.

How commodity market works?

We know that commodity is exercised via future contracts. In future trading, a minimal amount called the margin is to be locked before carrying out trade as a security. 24 Carat Financial Services is an commodity tips provider that extends recommendations after thorough research and analysis.

Now, suppose, if the prevailing trading price of copper is $50 per kg and the copper future contract is for thousand kilograms. Hence, the total value of copper future contract will be $50,000. Now, let the margin deposited by a trader to carry out trade is $3110. So, we can say that only $3110 is required to control $50,000 worth of copper. For every $1 fluctuation in copper price, the trader will potentially profit or lose $1000 per copper contract he’s engaged in.

Now, if the copper price moves by $2, it connotes 40% move when compared to the margin required to trade copper future contract.

This is the most common and popular risk of commodity market. This risk came into existence due to the derivative nature of commodity trading.

Commodity traders should have a broad viewpoint and perspective over the commodity prices and be updated with every second news because every second fluctuation counts.

Since we trade in futures, one has to generate a future viewpoint on the price of commodities. This is the biggest challenge because movement of commodities depend on varied range of factors. These include political and regulatory changes, seasonal variations, weather, technology, market conditions, transportation delay, supply-demand ratio, etc.

There are many fake tipsters who tend to take in money promising to provide best financial services. One must beware of such fake organizations. Usually the option traders get afflicted by the false stock recommendations providers.