How do I choose my broker?

Few of the established brokers of the equity market have sought membership with NCDEX and MCX commodity exchanges.  Brokerage firms like Refco Sify Securities, SSKI (Sharekhan) and ICICIcommtrade (ICICIdirect), ISJ Comdesk (ISJ Securities) and Sunidhi Consultancy are already offering commodity futures services.  Many of these firms offer online trading facilities for commodity trading. However, you can also get a list of names of several brokers from the commodity exchanges and choose anyone from thereon.

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Do I have to give delivery or settle in cash?

Actually, you can do both. All the exchanges allow you to use both the systems - cash and delivery mechanisms. The choice is all yours; you have to decide which mode would be most suitable for you. In case you want your contract to be cash settled, you must indicate this at the time of placing the order that you don't intend to physically deliver the item.

If you wish to take or make delivery of the physical product, you need to have the required warehouse receipts. You can switch between the options to settle the trading in cash or through delivery as many times as you wants till the last day of the expiry of the contract.

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