Article

As a beginner, should we trade in both equity and MCX

Topic: Stock TradingPublished June 22, 2018

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It is very difficult to answer it because both of them risky and both of them having a profit also before to start invest in the market one should study properly. But as a beginner or a learner one should start trading with equity market only and gradually one should go for commodity trading.rnFor intraday trading you need only 50k to 1 lac is sufficient to trade and in option with 20k- 40k you can invest easily may be 2–3 lots.rnDifferent commodities are traded on derivative or future contract according to that in commodity derivative risk his high although its profit also would be high. As beginner all this thing depend on your investment as well on your risk taking capacity.rnWhat is commodity trading ?rnJust like shares are traded in the equity market capital are traded in forex market Commodities are also traded in commodity exchanges commodity either can be defined raw products like corn spices grains or financial products as gold silver or copper etc.rnBut if you want to start your trading in commodity market amount will also be huge as it is being traded in gold,silver as all of us know it is very precious metal demat account is also required for this as we need in equity trading and it is depends on your will whether you have to take physical delivery or not. Investors typically trading in futures options, that give them the right, not the obligation, to buy commodities at a certain price sometime in the future before the date of expiration. This means that when you buy a commodities option contract you are buying the right to buy at a certain pricernWhat is equity trading ?rnEquity trading is a trading in which trading is done on stocks means shares of any company whenever a company needs of more funds they issue shares of the company value of which sometimes increases sometimes decreases and trading on these shares called equity trading. Apart from cash trading there are many segments in which you can trade and can earn huge profit also from the market even in commodity market a huge profit can be made but this trading is not as easy as equity because it is little confusing if we compare to equity trading. So one should start trading with equity market only as he or she will not get confused and later on should learn rest of the segments and can invest more fund as he learns trading. rnSuggestion is that one should not start trading in both as a beginner can go in huge losses. He or she can't keep an eye on both as a beginner

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