iCharts Discussions

[GAJ]

Hi,

I'm completely newbie to commodities trading.
I want to know more about trading in spices on NCDEX. Can I trade in spices as a retail investor? How mu ch margin is required for trading ?

Thanks for the help!

[GAJ]

It seems that nobody trades in spices, atleast in this forum.

[iakash]

Hi GAJ,

I am a retail trader and have traded cardamom on MCX in the past. As far as I know, retail traders can trade spices on NCDEX as well. For margin, you can check NCDEX website for contract specifications of each spice OR check with your broker. Your broker will easily provide you the info on margin requirements.

[GAJ]

Hi iakash,

Could you please share your experience with spices trading as compared to other hard commodities like crude, gold ets., in terms of liquidity, profitability. Who was your broker? How much margin it takes for trading in cardamom? I tried to search NCDEX but couldn't get the info. I trade with icicidirect. I think they don't provide commodity trading.

thanks for the reply.

[iakash]

Hi GAJ,

Let me answer your questions one by one:

1. Lack of liquidity is the biggest problem in trading spices. Huge price swings can happen without enough volume. Price may cross your stop loss without executing your order.

2. My experience while trading cardamom was that volatility was high; circuits used to hit very frequently. While its good if your trade is in the right direction, but can prove very costly if you are on the wrong side.

3. I use Zerodha which does not trade with NCDEX. So I have no experience of trading on NCDEX. But watching NCDEX charts in Icharts, I can tell the scenario in NCDEX spices with regards to liquidity and volatility looks similar to cardamom in MCX.

4. Margin required for cardamom in MCX is very less. Its about 5K per lot. I do not know margin requirements for NCDEX spices.

I hope above info is useful.

[Hydrogen]

Hi
On NCDEX there are some commodity which are highly liquid, I tracked CHARJDDEL (Chana dal). Now they have introduced Chana dal mini lot also.
DHANIYA, JEERA AUJHA are the product which are also liquid.

NCDEX is good for agri product while MCX is good for Energy & Metals. Agri products are not liquid on MCX.

[ninjadude]

you can also trade along with the other recommendations that forum members have suggested

Syorefidr,Sybeanidr(soyabean) which are also liquid,
but be aware the ncdex market closes at 5 pm.

I am checking couple of things out on spices will keep you posted wHEN something "POSITIVE" comes up

hope that helps

[GAJ]

Thanks Hydrogen. ninjadude !

Few more queries.

1. Are the futures contracts in spices cash settled just like in equity markets?

2. If I don't close my position before expiry will it be automatically closed and cash settled?

[Hydrogen]

[AMBY]

THANK YOU FOR STARING THREAD FOR SPICES.