The speaker talks about his surprise at receiving 60,000 views on his commodity basics video, and explains the benefits of trading in the commodity market. He outlines the basic structure of commodities and explains how the global price affects Indian commodity prices. The speaker also discusses the importance of tracking both global and Indian prices, and explains the concept of currency fluctuation. The video concludes with advice for beginners interested in commodity trading.

Understanding Commodities Trading: The Basics of Gold and Silver

Introduction

Trading commodities has become popular among people who want to earn money in a few hours in the evening or night, especially those who are busy during the day. With a small capital, one can buy gold petal futures for around 500 and spend some time practicing technical analysis in live markets. In this video, we will discuss the important logics of trading gold and silver, as well as the basic knowledge required to trade commodities.

The Basic Structure of Commodities

Commodities are traded in the Multi Commodity Exchange (MCX) in India, and the price is always in Indian rupees (₹). It is important to note that commodities are always based on global conditions and not Indian conditions. The commodity price in global conditions, in dollar terms, is multiplied by one dollar to get the price in Indian rupees. This means that if the global commodity price increases, the Indian commodity price also increases. It is therefore important to track both the MCX price and the global price for observation purposes.

Dollar and Rupee Relation

Beginners in commodities trading often get confused when it comes to the dollar and rupee relation. It is important to note that if 1 dollar is equal to 70 rupees in the present and then increases to 75 rupees after a few days, the rupee is weak and not strengthened. This concept is useful not only in commodities trading but also in the equity and currency markets.

Futures and Options Trading

Trading commodities involves trading in futures and options, with different futures for each point move. For gold, gold mini, gold guinea, and gold petal, one can learn how much can be earned for each point and the money needed for buying, selling, and charging. With a basic order, traders can observe different factors, including global updates, to trade effectively in the MCX.

When the Price of Gold and Silver Increases and Decreases

To trade gold and silver effectively, it is important to understand when the price increases and decreases. Traders can observe global updates, as well as technical analysis, including price action, support and resistance, and indicators, to determine the trend in gold and silver prices.

Conclusion

In conclusion, trading commodities can be a valuable source of income for those who have limited time to trade during the day. Understanding the basic logics of trading gold and silver, as well as the basic knowledge of commodities trading, can help traders make informed decisions when trading in commodities. By combining observation and technical analysis, traders can effectively trade in the MCX and earn profits.