What is a commodity?

Commodities are tangible goods, such as food grains, industrial crops, precious metals, and crude oil, often used in large quantities for production or direct consumption. Their uniformity, like one unit of gold being indistinguishable from another, makes them suitable for trading.

What are the types of commodities traded in the Commodity Derivatives Market?

Commodity derivatives encompass a wide range of agricultural and mined products, including dairy, crude oil, natural gas, gold, silver, copper, and aluminum, offering diverse trading opportunities.

What is a Derivative Contract?

Derivatives are financial instruments deriving their value from underlying assets, such as equities, currencies, or commodities. For example, futures contracts for Reliance Industries (RIL) are tied to the performance of RIL's shares.

What are the various benefits of Commodity Derivatives Markets?

Commodity derivatives markets provide a nationwide platform for price discovery and risk hedging, fostering organized and trustworthy trading environments. They offer unbiased price signals, aiding production planning and trading decisions.

How does Commodity Derivatives trading take place?

Commodity derivatives trading involves standardized contracts of agricultural and non-agricultural commodities traded electronically on recognized commodity exchanges or select stock exchanges, subject to regulatory approvals.

What is Currency Trading?

Currency trading involves the simultaneous purchase and sale of one currency against another, such as USD versus INR, providing opportunities for speculation and hedging.

What are Exchange Traded Currency Futures and Options?

Exchange Traded Currency Futures and Options are standardized contracts traded on exchanges featuring fixed contract sizes and expiry dates.

What are the advantages of Trading Currency Futures and Options?

  • Lower Transaction Costs: No STT/CTT and minimal stamp duty. 
  • Smaller Contract Size: Contracts worth less than one lakh facilitate broader participation. 
  • Lower Volatility: Currency markets typically exhibit lower volatility and narrower bid-ask spreads. 
  • Longer Trading Hours: Currency trading extends from 9 a.m. to 5 p.m., offering extended trading opportunities. 
  • Low Margin: Margins typically range from 2.5% to 5%, depending on the currency pair. 

What are Currency Derivatives?

Currency Derivatives derive their value from currency exchange rates relative to other currencies, serving as valuable tools for hedging, arbitrage, and speculation.

How to trade Currency Derivatives in India?

To initiate Currency Derivatives trading with us:

  • 1. Log in with your user ID and password. 
  • Accept the online "Currency Derivatives Terms and Conditions." 
  • Allocate funds to your Currency Derivatives segment through the Modify Allocation link. 

What is an Equity Account?

An equity account represents holdings of equity and preference shares within a company. It serves as a consolidated record of these shares in dematerialized form, simplifying portfolio management.

What is a Trading Account?

A trading account is a comprehensive record-keeping tool for tracking equities, commodities, derivatives, and currency trades. It is particularly relevant for active day traders who frequently buy and sell assets within a single trading session.

What is a Demat Account?

A demat account is like a bank account that facilitates the digital transformation of shares and securities, replacing the need for physical certificates. It enhances security and reduces the risks associated with physical security.

Why should I invest in Equity?

Equity investments historically offer superior long-term returns compared to other financial assets, such as fixed deposits, government savings schemes, real estate, or commodities. Indian equities have displayed impressive CAGR returns of 15-16% over the past decade, underlining their potential.

What are the documents required to open a Demat account?

To open a demat and trading account, you need Aadhar and PAN cards, income proof, a webcam for personal identification, and a canceled cheque. Our E-KYC-linked account opening process is designed for simplicity and efficiency, requiring just a few steps.

How do I know when to buy and sell stocks?

Following research calls generated by expert research analysts is a proven strategy for equity investment. These professionals assess stock value based on various financial ratios and developments. Buy when stocks are undervalued, and consider selling during periods of uncertainty.

How can I place my trade through you?

We prioritize personalized service and assign dedicated relationship managers to each client. These managers handle order execution portfolio updates and offer valuable investment advice. Additionally, our user-friendly ReSACH mobile app streamlines the trading process.

Can I place a trade on the phone?

Certainly, you have the option to place an order via a phone call. We operate through secure lines, recording all transactions to guarantee the authenticity of your trades.

How to trade shares online?

Our mobile app allows you to buy and sell shares with ease. You can monitor your portfolio, track returns, and manage mutual fund holdings conveniently. It's a comprehensive tool for on-the-go trading.

What are Derivatives?

Derivatives are financial instruments deriving their value from underlying assets, such as equities, currencies, or commodities. For example, futures contracts for Reliance Industries (RIL) are tied to the performance of RIL's shares.

What are the various types of Derivative Instruments?

Derivative instruments can be broadly categorized into two types: Futures and Options. Futures involve an agreement to buy or sell an asset at an agreed price and time, while Options provide the right, but not the obligation, to buy or sell an asset at a specific price and time.

How to trade in Derivatives?

To invest in derivatives, open a trading account with a SEBI-registered broker and activate the relevant derivative segment(s) (e.g., Equity derivatives, Commodities, or Currencies). This enables you to participate in derivatives trading.

Why should I invest in Derivatives?

Derivatives offer inherent leverage, potentially enhancing returns when used with discipline. They also provide valuable tools for portfolio risk management through various strategies.

Is investing in Derivatives risky?

Derivatives are leveraged instruments, and while they can be valuable, they require careful risk management. When used judiciously and with a sound strategy, they can be a powerful asset for generating returns and managing portfolio risk.

What documents do I need to invest in derivatives?

In addition to KYC documents for opening a trading account, you'll need to provide one of the following: a six-month bank statement, the latest ITR Acknowledgement copy, Form 16 for salary income, the latest salary slip, the latest DMAT holding statement, or a net worth certificate certified by a chartered accountant to activate the F&O segment.

How do you select stocks for investment?

Choosing stocks for investment involves careful research into a company's financial health, industry trends, and growth potential. Assess factors like earnings, management quality, and long-term viability to make informed decisions.

How to select stocks for Intraday Trading?

Intraday trading requires a focus on short-term price movements. Look for stocks with high liquidity, volatility, and technical analysis indicators like moving averages and RSI to identify potential intraday opportunities.

How do you select stocks for investment in India?

When selecting stocks in India, consider factors such as the economic environment, company fundamentals, and regulatory conditions. A diversified portfolio that aligns with your investment goals is essential.

How do you select good stocks?

Identifying good stocks involves evaluating financial stability, growth prospects, and industry performance. Look for companies with a competitive edge, solid management, and a history of delivering shareholder value.

How do you select Short-Term Stocks?

For short-term investments, focus on stocks with catalysts like earnings reports or news events. Utilize technical analysis to pinpoint entry and exit points while managing risk through stop-loss orders.

How to select Stocks for the Long Term?

Long-term stock selection emphasizes stability, growth potential, and a buy-and-hold strategy. Prioritize companies with strong fundamentals, competitive advantages, and a history of consistent performance.

How to make money trading Derivatives?

Derivatives can amplify returns but require skill and risk management. Develop a solid trading plan, use technical and fundamental analysis, and set clear entry and exit strategies to profit from derivatives.

How to do online trading in the Indian Stock Market?

Online trading in the Indian stock market involves opening a Demat account, conducting share price technical analysis, placing orders, and monitoring your investments through a secure online platform. Our experts can guide you through this process.

What are the different types of online trading?

Online trading encompasses various forms, including equity trading, commodity trading, currency trading, and derivatives trading. Each type has its own risk-reward profile, catering to different investment strategies.

What is an equity trade life cycle?

The equity trade life cycle encompasses a structured series of steps, commencing with order placement, where investors specify their desired stock transactions, and concluding with trade settlement, where cash and securities are exchanged.

The Ultimate Trading App

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Warren Buffett

Investor Announcements

    • KYC is one time exercise while dealing in securities markets-once KYC is done through a SEBI registered intermediary (Broker, DP, Mutual Fund etc.), You need not undergo the same process again when you approach another intermediary.
    • No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorize your bank to make payment in case of allotment. No worries for refund as the money remains in investor’s account.
    • Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.
    • Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.
    • Pay 20% upfront margin of the transaction value to trade in cash market segment.
    • Investors may please refer to the Exchange’s Frequently Asked Questions (FAQ's) issued vide circular reference NSE/INSP/45191 dated July 31, 2020 and NSE/INSP/45534 dated August 31, 2020 and other guidelines issued from time to time in this regard.
    • Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month. ………. Issued in the interest of Investors
  • Purchase of REs only gives buyer the right to participate in the ongoing Rights Issue of the concerned company by making an application with requisite application money or renounce the REs before the issue closes. REs which are neither subscribed by making an application with requisite application money nor renounced, on or before the Issue closing date shall lapse and shall be extinguished after the Issue closing date. Please check your dp account for further details.

  • Please do not share your online trading password with anyone as this could weaken the security of your account and lead to unauthorized trades or losses.
    Monarch Networth Capital Limited (‘MNCL’) | CIN No.: L65920GJ1993PLC120014

    Registered Address

    Unit No. 803-804A, 8th Floor,
    X-Change Plaza, Block No. 53,
    Zone 5, Road-5E, Gift City,
    Gandhinagar - 382355, Gujarat

    Corporate Address

    “Monarch House” , Opp Prahladbhai Patel garden,
    Near Ishwar Bhuvan,Commerce Six Roads,
    Navrangpura, Ahmedabad – 380009

    Mumbai Corporate Office

    Monarch Networth Capital Limited, G Block,
    Laxmi Tower, B Wing, 4th Floor, Bandra Kurla Complex,
    Bandra East, Mumbai – 400051.

    Contact Details

    Tel:079-26666500 / 6600500
    Compliance Officer:Nikhil Parekh
    Compliance Email:compliance@mnclgroup.com
    Compliance Tel:+91-79-26666768

    Registered Numbers

    SEBI Registration No:INZ000008037
    NSE Member ID:06386
    BSE: Member ID :197
    MCX-SX Member ID:36900
    SEBI Reg:INZ000008037
    MNCL:INM000011013
    MCX: Member ID :10585
    Date of Admission:28/02/2004
    NCDEX: Member ID :00011
    Date of Admission:06/12/2003
    SEBI Registration Number:INZ000043833
    AMFI Reg ARN:8812
    Research Analyst No:INH000000644
    PFRDA registration Number:POP 06092018
    CDSL-DP ID:35000
    NSDL-DP ID:IN303052
    SEBI Reg (DP):IN-DP-278-2016

Disclaimer

‘Investments in securities market are subject to market risks, read all the related documents carefully before investing.’

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