Who are eligible for opening a commodity trading account?

Any individual, Hindu undivided family (HUF), proprietary firm, partnership firm, or a company can open an account with Paterson Commodity.

Only resident Indians can open commodity trading account.

How do I open an account?

It's simple! Apply online, call or visit our local branch near to you. Our Relationship manager will contact and help you.

What is the margin that I need to pay Paterson Commodity to start trading?

You can start trading by placing the exchange specified margin.

What are the prerequisites of trading?

  1. PAN Card
  2. Operating bank account and Paterson commodity trading account
  3. Demat account is not mandatory for trading, however commodity Demat account is mandatory for all delivery based transactions.
  4. Sales Tax number is not mandatory for trading. However, it is mandatory for all delivery based transactions.

Can a Non Resident Indian (NRI), Mutual Fund (MF) , Bank, Foreign Institutional Investor (FII) trade in commodities in India?

NRIs, MFs, Banks and FIIs are not allowed to trade in commodity futures in India.

Which commodities I can trade?

The following commodities are actively traded in these two Exchanges:

Multi Commodity Exchange (MCX)

Bullion: Gold and Silver

Metals: Aluminum, Copper, Zinc etc.

Oil and Oil Seed: Refined Soy Oil, Soy Bean etc.

Energy: Brent crude oil, Crude oil, etc.

Other commodities: Urad, Chana, Wheat, Guar Seed, Sugar, Potato etc.

Which exchange should I select for trading?

Both the commodity exchanges have done exceedingly well over the years, in terms of risk management, volumes or launching new & better commodity products. However, before choosing an exchange you need to check the following:

The commodity you wish to trade is listed on that exchange.

Check the contract specifications of that commodity to ensure it suits you best.

There is enough liquidity in the exchange for commodities of interest.

Commodity price should be in sync with the physical market prices or its respective benchmark prices.

What is margin?

Margin is the amount which is required in advance to execute trades on the exchanges.

What is Initial margin?

Initial Margin is the amount of money deposited by both buyers and sellers of futures contract to ensure the performance of trades executed.

What is maintenance margin?

Maintenance Margin is an amount over and above the Initial Margin to ensure that the balance in the margin account never goes below a pre-specified level.

What is additional margin?

Additional Margin is the margin collected to protect the open positions from unexpected volatility prevailing in the market.

What is marked to market (MTM)?

On the day of entering into the contract, it is the difference of the entry value and closing price for that day. In case of carry forward position, MTM is the difference of the market price less yesterday's closing price.

What are the terminologies used in trading?

Long - means buying a commodity in anticipation that the price will move up.

Short - means selling a commodity in anticipation that the prices will come down.

Stop loss - Stop loss is an order to limit an investor's loss on the position he holds. By placing a Stop Order, Investor actually set a loss level which investor is willing to undertake.

Will I receive trade confirmation?

Yes. You will receive contract notes for your trades. Further, your dealer/relationship manager will update you accordingly.