Much to the convenience of one and all online commodity trading is here to stay. Initially prior to the ban on commodity trading it was a different scenario. One that made the so called commodity markets or exchanges look like any other market, minus the regular bargaining that one witnesses. There was no computer systems to document all trades. In fact, it was chaotic and tedious. Yet, if one were to ask the old time commodity traders if they faced any difficulties, they would answer in the negative.
While the day’s trading in the bourse would look chaotic, yet there were no lapses in trades. Buying and selling happened as meticulously as it does today. But then, at that point of time commodity traders were required to visit the market or so-called exchange to carry out their day’s trades.
With online commodity trading things have changed. Today one can carry out their trades from almost anywhere, which includes anywhere in the world. Yes, there are people living in different parts of the world doing online commodity trading with India. There are certain formalities that one is needed to go through to gain membership on the exchanges. But after completing all of that its trading for them.
To be able to indulge in online commodity trading, one essentially needs to be connected to the exchange directly or then a member of the exchange. There are a large number of brokers and brokerage firms that offer online trading of commodities. With this connection one is also trained in the process of making trades on line.
As soon as one makes a trading request it is registered with the host trading party and the process of preparing the contract commences simultaneously. The trading host server also sends back an instant request to confirm the trade.
To register oneself with any online commodity trading firm one is required to fill in an electronic form and mail it back. One is also required to make a certain payment to be able to begin trading. Once all the formalities are completed and company has accepted the payment then the trading can commence.
There are a large number of people, who in spite of having fulltime jobs, yet do online trading to earn additional income. There are also small time brokers who do trades for others, without actually running a full-fledged office. They trade on line for the clients.