Why traders with greater investments prefer to trade in commodity market?

The evolution and growth of the commodities market in India have shown an impressive record in the capital market. In a commodity market, the investor deals with the products like Gold, Silver, Crude Oil, etc rather than company's shares. Commodity market in India has been showing a faster growth, these gains have attracted more investors with greater investments towards the commodity market.

The commodity market requires more investments as they come with a higher probability of profit. To make a profit and the time worthy, the trader must be aware of the commodity market. It is certainly a better option which involves the trading of precious metals and other valuable goods, which results in high profit.

Traders who are trading in commodity market are making a profit on a daily basis, but do they ever think that the profit can be more and can be increased day by day? Most traders get satisfied as they don't want to opt the premium share market tips specially researched for commodity traders, as they think it is worthless. And there are a lot of other options available like, MCX tips for beginners. Traders are making a decent profit without premium services but if they are ambitious and want to improve their trading skills and experience, Premium trading tips can be much helpful and can be worth every penny. The commodity tips provider provides the best and pre-analyzed tips to the investor which are much beneficial than non-premium tips.

Taxes on your Investment Profits

The year 2018 has been not so great so far for share market traders with the budget session declaring 10-20% tax on your long-term capital gains through financial market. A trader has to pay the taxation under the norms of the finance ministry of India if he gains any profit on the asset he’d be selling after over a year.

Any income from buying and selling shares even if more than a year is considered as a business income. This gets added to your income and then taxes paid according to the above-mentioned slabs. But since it is a business income you can show expenses in terms of Internet, advisory charges etc, any charge that you have incurred for the business of trading and reduce your income liable to be taxed

Even in commodities, you have to pay taxes, varying 15-20% of your profit. Commodity tips providers have suggested investing for short term and the tax slab could be reduced if you are trading with mcx gold tips. The diversification of portfolio will be a great method to reduce the extra levy on your investments. This will help to make you net profit efficient.

Even on short-term taxes, with your profit exceeding 2-5 Lacs INR, you’d have to pay the tax up to 20%. All of your income through the share market trading is considered as the business income and hence you are eligible for taxes on most of your share trading earnings.

How do commodity exchange market works?

Dealing in commodities is an old business, dating back before the dealing of bonds, shares, and mutual funds was there. Older civilizations traded a variety of range of commodities, from seashells to spices, from cattle to metals. Commodity trading is always been an essential business. Nowadays, the trend of commodity trade is on the peak. The commodity market today works same as every other market.
Following the same principle of buying and selling with an aim to make maximum profit, various commodities are being traded in millions by thousands of traders on a daily basis. Most of the trade is done through the future contracts, in the commodity market. A future contract is an agreement between the two parties ready to make the trade. The buyer agrees to pay the agreed-upon value at the moment of the transaction when the seller delivers the commodity at a pre-decided date in the future.
The commodity market is an excellent platform to make a relatively great profit on your investments. However, it involves a great risk of loss too. While trading in commodities, international market updates and various segments and market stock tips knowledge is must for a trader, as every commodity is directly attached to the international market. A trader can make a great profit while dealing in commodities and make great profit daily with very least probability of loss with intraday tips. A commodity trader needs to be aware of all the prospects related to the market.