To trade in commodities, you need to open a commodity trading account with a broker.
This type of trading is essentially in futures and options of products like agriculture
(wheat, cotton, etc.), minerals (petroleum), and precious metals (gold, silver,
etc.).
Before you open a commodity account, you need to know a little bit about derivatives.
There are two main types of products – futures and options. Futures contracts give
you the right to purchase or sell a certain amount of a particular commodity at
a predetermined date in the future. Options give you the right, but not the obligation,
to buy or sell a specific commodity at a predetermined price in the future.
Futures and options are traded on commodity exchanges like Multi-Commodity Exchange
(MCX) and National Commodity and Derivatives Exchange (NCDEX). Only members (brokers)
are allowed to trade on these exchange, so you need to open commodity trading account
with a broker like Achintya.