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Karobaar Commodities Pvt. Ltd.

Contact Person: Parveen Choudhary

Tel: 0662233831

Address: 42, Red Square Market, Hisar, Hisar, Haryana, 125001, India

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Karobaar Commodities Pvt. Ltd.

Welcome to a whole new world of opportunities! Commodity

The process of economic liberalization in India began in 1991. As part of this process, several capital market reforms were carried out by the capital market regulator Securities and Exchange Board of India. One such measure was to allow trading in equities-based derivatives on stock exchanges in 2000. This step proved to be a shot in the arm of the capital market and volumes soared within three years.

The success of the capital market reforms motivated the government and the Forward Market Commission (the commodities market regulator) to kick off similar reforms in the commodities market. Thus almost all the commodities were allowed to be traded in the futures market from April 2003. To make trading in commodity futures more transparent and successful, multi-commodity exchanges at national level were conceived and were allowed to start futures trading in commodities on-line.

Coming to commodities, today Indian investors can trade in a great number of commodities on these bourses, and the list is getting bigger by the day. No wonder then that the commodity futures market is being viewed as a significant business segment by many– businessmen, investors, institutions, brokers, banks et al.

In spite of all this flurry of activity during past three-four years, the awareness about commodities remains low. Many investors are still not aware that they can invest in commodities as diverse as gold, silver, jeera, and cotton with the click of a mouse, right from the confines of their living room. No doubt many are unaware that commodities are completely unrelated to other investment vehicles and thus can act as a buffer in the times of crisis.

Wishing you happy investing,

What Are Commodities??

Many people are familiar with the share market and owning shares. Shares are of course a popular investment. Interestingly, few people really know how to invest and make money in commodity markets. It is a little ironic that these things we call "commodities" are all around us in everyday life.

Consider the leather chair in your office. Chances are there are also plastic parts in the chair. Some plastics come from Crude Oil. The price of Crude Oil is tradable. The chair would also have metal components. The price of metals are tradable. It is an interesting exercise to just take a look at the things around you and think about the influence the commodity markets have. Think of commodities as the physical ‘things’ that go into making almost everything around us: from hamburgers to cars; from jewellery to t-shirts Price movement in these markets can offer significant profit opportunity for the investor.

Why Trade In Commodities?

Although commodity derivatives command a humble share of 6% in the derivatives segment across the world, yet these record high volumes in the markets the world over compared to equity derivatives.

Of course with the other asset classes offering attractive returns, "Why Commodities?" is the inevitable question that pops in one’s mind today, more so considering that the BSE Sensitive Index is scaling new highs by the day. Well, despite offering relatively lower returns, commodity derivatives provide unique money-making opportunities to a wider section of market participants, starting from planters to exporters, importers et al. And to the agrarian Indian population commodities are obviously not new, nor are the advantages of trading in them unknown.

No balance sheet, P&L statement, EBITDA and reading between the lines. Commodity trading is about the simple economics of supply and demand.

Supports are known, only resistance matters! Minimum support price acts as a statutory support for many commodities.

No Dollar-Rupee premiums/discounts. No hedging on the NYMEX. Indian commodity derivatives hedge both forex and commodity specific risks at a single cost.

No breaking of