Commodities are ideal for asset allocation purposes as it improves overall return of a portfolio. It also helps hedge against inflation and buy a piece of global demand growth. Commodity Derivatives futures contracts are contracts to buy/sell specific quality/quantity of a particular commodity at a future date.
Our commodities trading business serviced through JM Financial Commtrade Limited is meant for clients who seek an excellent execution platform to trade in bullions, base metals, crude and other soft commodities on SEBI recognized national level Commodities exchanges. The commodities presently covered by us are gold, silver, crude oil, copper, nickel, zinc, lead and natural gas.
As it with Equity and Currency markets, even the Commodity segment is profoundly influenced by a constant string of global events. Our team of experts constantly assesses the global macroeconomic causal factors and attempt to create opportunities for the benefit of our clients. We provide a seamless execution platform where trading decisions are backed by sound research in commodities. We release thematic research reports for positional traders as well as a daily technical perspective for day traders.
For our wealth clients, we enable our clients to preserve wealth through commodity price risk management techniques, otherwise called hedging. Hedging isolates the impact of commodity price volatility on your enterprise and thereby helps clients in reducing exposure to market surprises.
It allows controlling costs, over which company has no control and cannot influence. It enables investors to focus on core business activities by locking in the appropriate conversion spread in the manufacturing cycle.
Futures’ market allows reducing price risk at a nominal cost. There are varied hedging ideas from selective hedging, opportunistic hedging to inventory/exposure hedging.
We also help with surrogate hedging techniques where the input/raw material is not traded on the exchange platforms, but exhibit a correlation with another commodity, which indeed is traded.
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