1. Are commodities and forex markets open 24/7?

The Forex market is available 24/7, 5 days a week, so they are more easily accessible. The commodity market is not open 24/7; it has set working hours for trading.

2. Is forex trading permitted in India?

Forex trading in India is controlled by RBI and SEBI, and is at present limited to currency pairs involving the Indian Rupee (INR) - such as USD/INR, EUR/INR, GBP/INR, JPY/INR.

3. Can I trade commodities and forex with the same broker?

Yes, most brokers and trading platforms offer entry into both markets. Just ensure that the broker is SEBI-regulated (for the Indian exchanges), and look at margin requirements, trading commissions, and leverage policy before choosing to avoid any surprise at the end.

4. Can I hedge my stock portfolio using commodities or forex?

Yes, forex and commodity trading (like gold) are widely utilised by market participants to hedge against the risk of their equity portfolio. Commodities can be utilised as a natural hedge against inflation, and hedging in forex is utilised against unfavourable currency movements in international portfolios or businesses. Commodities and forex trading are not for beginners. They are best suited for experienced traders who have a deep understanding of Indian and international financial markets.

5. How are gains from commodity or forex trading taxed in India?

Profits or losses from trading in commodities and currencies are usually treated as business income in Indian tax law. They shall be reported under 'Income from Business or Profession' and taxes must be paid based on their relevant slab rates.

Commodity vs Forex Trading

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Commodity Trading

Commodity vs Forex Trading

Commodity Trading

Commodity vs Forex Trading

Difference between Commodity Trading and Forex Trading is very important for investors who are willing to diversify in other domains, instead of just sticking to conventional equity investing.