What is Commodities Future Trading at ICICIDirect.com?
As a customer of ICICIdirect now, you can trade on commodity futures on NCDEX. It comes with a comprehensive tracking cum risk management solution to give you enhanced leveraging on your trading limits. In futures trading, you take buy/sell positions in commodity contracts expiring in different months. If, during the course of the contract life, the price moves in your favor (rises in case you have a buy position or falls in case you have a sell position), you make a profit. In case the price movement is adverse, you incur a loss. To take the buy/sell position on commodity futures, you have to place certain % of order value as margin. With futures trading, you can leverage on your trading limit by taking buy/sell positions much more than what you could have taken in the spot market. However, the risk profile of your transactions goes up.
