How to buy commodities in Zerodha?
- Asked By
- Updated On:08-Jul-2021
- Replies:1
Short Answer
Commodities are a separate segment that you have to get activated in Zerodha in order to trade in them. Once you submit some basic documents such as your income proof or salary slip, it will get activated. After that, you can buy or sell any commodity on Zerodha.
Detailed Answer
Commodities are completely a different asset class when it comes to trading and investing. Retail investors don’t usually invest in commodities like Natural Gas, Gold, Silver, etc. Therefore commodities are used for intraday or positional trading.
Let’s look at how to buy commodities in Zerodha.
Before we find out how to buy commodities in Zerodha, let us look at some important points to consider:
How to buy commodities in Zerodha? Important Points
Some Important Points to consider:
- The commodities segment in your Zerodha account must be active. This can be done at the time of account opening or could be done afterwards by submitting some necessary documents. They include documents like Income proof, ITR, Salary Slip, etc. The charges for activating the commodities section is Rs. 100 that has to be paid separately at the time of activating the segment.
- Once the commodities segment is active in your account you need to add funds in you commodity section of your account. Zerodha has two separate segments to add funds. One is the Equity and Derivatives, through which you can place an order in the Cash and Derivatives market. The second segment is for the commodities where you have to add funds to trade in commodities.
Once you have completed these two steps successfully, you can buy any commodity on Zerodha by following these steps.
Steps to buy Commodities:
- Open your Zerodha account by entering your Login details, ID, and Password. Post that, go to the watch list and enter the commodity that you want to buy.
- Let us assume you want to buy Gold, you can choose, Futures or Options of Gold. If you want to buy Gold Futures, enter the Gold FUT symbol in the search bar and add it to your wish list
- Click on the “Buy” button on Gold in the watchlist. A order box will open. Select the order type, (MIS or NRML). Choose MIS if you want to square off the position within the same day, or else choose NRML for an overnight position.
After this, enter the price at which you want to order to get executed in the Limit order section. If you want to buy it at the current price then select market order.
- After confirming all the order types, enter the quantity you want to buy, for example, 1, 2.. etc. After this, the order will get confirmed and in case of a market order, it will get executed immediately. Make sure to maintain sufficient funds in your account in order to execute the order successfully. If you have a shortfall in funds required, the order will get cancelled due to insufficient funds.
By following these steps you can buy any commodities in Zerodha. In case you buy Futures or options of commodities, make sure to square off these positions before the last expiry of the month to prevent physical delivery. The same applies to Long or Short positions in any commodities. Also, try to keep at least 20% more margin money due to the current guidelines of SEBI related to peak-margin money requirements.
Ask Your Query for FREE, Get quick answers from our FINTRAKK community!
Discussion (0)
Zerodha is India’s top Discount broker that allows its clients to trade in Equity and Commodities. Equity and commodity are two different asset classes in which you can trade as well as Invest. Know what are equity and commodities in detail.
Discount brokers have gained a lot of popularity in the past couple of years. Zerodha is currently India's largest and most trusted discount broker which is also the best option for beginners. It has all the necessary qualities required for a good broker like low commissions, low-maintenance charges, high-quality trading terminal, etc.
For placing a BTST order via Zerodha Kite, the process is quite simple. You can follow the same steps as to how you might place an order on Zerodha Kite. However, when you buy or purchase a stock, you will have to select the “CNC product type” option in the buy order popup.
GTT or Good Till Triggered, is a feature of Zerodha that lets users execute trades based on a specific price point. It's quite helpful for those that want to trade in the stock market but have no time to keep track of their investments.
Zerodha is one of the best discount brokerage firm based in India. It provides a wide range of financial services to investors and traders.
Head into your Zerodha Streak account, then click on the create option, following which enter all the fields of your choice. Click on the finish button to execute the scrips in your trading strategy.
There are two ways through which you can add Nifty 50 stocks in Zerodha Kite. The first is by adding them one by one and the second is by investing in Mutual funds.
Zerodha is India’s number one broker in terms of active clients and also by trading volume. Zerodha offers many platforms to its clients to trade on. ‘Zerodha Pi’ is one of Zerodha's most advanced platforms that allows you to backtest and create various Algo strategies.
Zerodha was launched in 2010 in India. Since then it has attracted almost 2.5Mn users due to its features and modern products.
IOC simply stand for Immediate Or Cancel (IOC) orders. As you get more and more familiar with trading terms and slang, you might realize that each term is supposed to be linked with others, which form this sort of conjoined strategies. These strategies are usually what result in successful trading, rather than speculation.