What is Commodity Transaction Tax?

Trading always involves dealing with taxes. Investors often go to great lengths to minimize
their tax liability and frequently do extensive research to determine whether assets fall into
this category. Many people and organizations seek the assistance of chartered accountants
so that they may better manage their finances and capitalize on opportunities.
Commodities are one asset that has historically had tax-free trade. The Union Budget
2013–14, however, made several significant changes. All non-agricultural commodity
transactions are now subject to the government’s newly implemented Commodity
Transaction Tax (CTT). Let’s take a quick look at the tax’s origins before diving into the
what is commodity transaction tax

Role of Commodity Market In India

How does the Indian government use the commodities markets to ensure its citizens always have access to food? In a recent news article, we learned that poor storage conditions led to the loss of wheat in Punjab, valued at over Rs.800 crore. At the moment, this is the danger a farmer must take. When these farmers sell grain futures on the futures market, they can lock in a price for their crop. 

Because of this, farmers will be protected against market swings. Low pulses prices, caused by excess on the Indian market, have recently been a significant financial setback for farmers. Sold as futures at a price that makes sense for the farmer, this problem can be solved. In addition, farmers frequently utilise the futures market to protect themselves against the potentially disastrous effects of price fluctuations on agricultural goods in many developed economies.

OTC Derivatives: Meaning, Types, and Advantages

You must know every trading jargon to be an expert investor and generate earnings. Over-the-Counter derivatives are one of many investing instruments enabling you to create substantial returns. 

This article will explain OTC derivatives if you are unfamiliar with this type of investment. But first, you must understand trading in products before moving on to studying OTC derivatives.

What Is Mcx Trading?

What is mcx? Multi Commodity Exchange of India Limited is the full name of MCX. A commodity derivatives exchange in India has made it possible to conduct online transactions in commodity derivatives for the first time. The Securities and Exchange Board of India (SEBI) has overseen MCX since its inception in 2003. (SEBI).

What is Rolling Settlement?

The thrilling nature of stock trading draws investors to the market for greater rewards. Intraday traders are on the other end of the spectrum compared to buy-and-hold investors, who hold their investments for a long time. To capitalize on price volatility, intraday traders purchase and sell equities several times throughout a trading session

What is Commodity Market?

Commodity markets are the physical or virtual places in which market participants meet to purchase or sell positions in commodities such as oil, gold, copper, silver, wheat, barley. Although originally started from agricultural commodities, commodity markets today trade all types of commodities such as basic metals — gold, silver, copper, infrastructure such as oil, electricity, even weather forecasts. There are around 50 main commodity exchanges around the world that trade over 100 commodities.

Is Investing In Commodities a Good Idea

Investing in commodities can certainly be a good idea. It can help you from losing everything both in terms of figuratively and literally. Real estate, bonds, or stocks are traditional investments but if you wish to diversify and branch out, you can try out your hand in commodities trading.

Financial Derivatives – Meaning, Types & Participants

The value of financial derivatives is derived from the underlying asset as an introduction to financial derivatives. Hedgers and speculators often use these contracts to profit from market volatility. The contract buyer agrees to acquire the item at the agreed-upon time and price. They have signed an agreement. In the same way, the seller also […]

What is Commodity Futures?

The futures market is a platform that allows small-time investors to control vast amounts of assets such as gold, currencies, and agricultural commodities by investing modest sums of money.

Why to Invest in Commodity Futures?

Experts and HNIs who have the financial means and willingness to tolerate large losses in a short period of time invest highly speculative equities. If you don’t mind losing, why don’t you try it? If you can make $50,000 in 5 minutes.