Exploring the unexplored has always been the most challenging yet interesting way of building a business, especially if you're a long established market leader—truly, a bold move! Moreover, Guess what?
The NSE has taken this challenge head-on by introducing commodity derivatives to its extensive trading repertoire. As a consistent leader in derivatives trading — particularly as the champion of equity derivatives — the NSE is now expanding its horizon. At this juncture, we are thrilled to announce our latest offering – NSE Commodities trading on FYERS, marking a significant shift in the Indian trading landscape. A new realm of trading opportunities, contrasting with the long-established equity derivatives market.
NSE Commodities vs MCX: A Comparative Study of Crude Oil Futures
The NSE, a powerhouse in equity derivatives, has ventured into the commodity derivatives market, making way to a new era for traders. To fully grasp the significance of NSE Commodities on FYERS, let's draw a comparison with the MCX (Multi Commodity Exchange) platform. These two giants in the commodities trading arena offer unique advantages and opportunities that set them apart.
Now, let's take an example for detailed comparative analysis, focusing on trading the futures of WTI (West Texas Intermediate) Crude Oil on NSE and MCX Crude Oil. Here's the monthly trading volumes for WTI Crude Oil on NSE Commodities and MCX Crude Oil:
As you can see, the modest trading volumes of NSE commodities, when compared with the MCX volumes, are indicative of a market that is in its infancy but poised for growth. This growth potential is especially pertinent given NSE's established infrastructure and widespread acceptance among traders.
But Wait, This Isn't The Full Picture!
While the MCX seem to be dominant in the commodity derivative space, the equity derivatives trading has been the one dominating the F&O segment in the Indian markets, primarily on NSE followed by BSE.
In 2023, the daily trading volumes in equity derivatives was an impressive ₹31,17,746.32 crores, overshadowing the commodity derivatives which stood at just ₹1,55,511.74 crores. This disparity of almost 20x not only reflects market preferences but also underscores the growth potential in the commodity derivatives sector.
The Essential Educational Resource You'll Need
Recognizing the importance of trader education in this new segment, we are committed to providing comprehensive educational resources, insights, and analysis via our School of Stocks. This initiative aims to ensure traders are well-equipped to navigate and capitalize on the opportunities presented in the commodity segment.
What Does This Mean for Your Trading Journey?
The addition of NSE Commodities on FYERS is not just about offering another product; it's about enriching your trading experience. Whether you're a veteran trader or just starting, this new segment brings with it a realm of possibilities – a chance to explore, experiment, and potentially enhance your trading outcomes.
Ease of Access: For existing FYERS clients, NSE Commodities have been integrated seamlessly. This means you can start exploring and trading in this new segment right away, without any additional setup.
User-Friendly Platform: FYERS is known for its user-friendly interface. Whether you prefer trading on the Fyers App, Web, or Fyers Next, you’ll find the experience familiar and straightforward. The transition to trading commodities will feel like a natural extension of what you already know and love about the platform. To know how to navigate and place orders, check out the below video.
Pledging for Margins: A Glimpse into the Future?
Looking ahead, the NSE is poised to become a significant hub for trading with its feature of allowing shares to be pledged for collateral margins in the derivatives segment. This feature, although not yet available for NSE Commodities on FYERS, is something to keep an eye on. It will enable traders to use their shares as collateral, providing additional flexibility and leverage in their trading strategies. Stay tuned, as we’re always working to bring you the best and most comprehensive trading options.
Concluding Thoughts: Your Trading, Simplified
As we embrace the evolving world of commodities trading, the addition of NSE Commodities on FYERS marks a pivotal moment. It’s not just about diversifying your portfolio; it’s about being part of a growing market that reflects the dynamism of the global economy. With NSE Commodities, you have the opportunity to tap into new trends, make informed decisions based on real-time data, and leverage a platform that’s both technologically advanced and easy to use. And remember to spread the word to your friends and family - refer & earn. If you are new to FYERS, you can sign up here.
In essence, "Trading Simplified" isn’t just our tagline at FYERS; it’s our commitment to you. We’re here to ensure that every step of your trading journey is backed by technology, insight, and unmatched ease. Whether you’re charting a course through the familiar territory of stocks or navigating the new waters of NSE Commodities, we’re with you, every step of the way.