Products & Services

What is Commodities Trading?

Commodities Trading involves trading in every kind of movable property other than actionable claims, money and securities. These include gold, silver and other metals and select agricultural commodities such as grains, pulses, spices, oils and oilseeds. It usually involves trading of commodities futures contracts.

Why trade in Commodities?

Commodities prices are relatively less affected by factors influencing the stock markets, and hence, offer an excellent avenue of portfolio diversification for investors. Along with diversification and predictability, an investor can also take advantage of the leverage and the liquidity that the market offers.[Read more]

Commodities' trading offers the following benefits:-

  • Diversification of portfolio: Commodity trading offers a means for diversification of portfolio for the investors, by offering exposure to an asset class different from stock markets instruments such as equities, mutual funds and bonds.
  • Predictability: : Commodities pricing is largely based on the demand and supply fundamentals for the commodity, and hence, becomes relatively easier to predict.
  • Leverage: Trading in commodities futures involves use of leverage through margin which is maintained with the broker. Hence, large transactions can be executed with lesser amount of cash in hand.
  • Liquidity: Futures contracts in commonly traded commodities such as gold, silver, crude oil and grains offer a high level of liquidity in the market.

IIFL Offering

IIFL is one of the leading players in the broking space in India and offers broking services in various categories of equity, commodities, currency, derivatives and so on. These services are supported by a strong in-house research team and an excellent customer support system. Trader Terminal, the proprietary trading terminal of IIFL offers the convenience of trading in commodities by providing flexibility of access, through desktop application as well as a browser-based web application.
Click here to access the Trader Terminal

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