In Pakistan, primary goods and necessary raw resources that are traded on domestic and
international markets are commonly referred to as commodities. There are some
important pillars that important goods in Pakistan consist of:
- Agricultural products include wheat, rice, cotton, sugarcane, and fruits such as
citrus and mango. - Energy resources: Pakistan consumes more oil and natural gas than it produces.
- Minerals include coal, limestone, salt
- Textile Pakistan exports a sustainable number of cotton-based textiles. These
commodities have an important role in Pakistan’s economy, and influence
commerce, industry, and employment.
These commodities have an influencing role in the economic system of Pakistan,
influencing trade, manufacturing, and employment.
How to Start Commodities trading in pakistan?
Commodity trading can be both rewarding and challenging. But to start commodity trading
in Pakistan there are some steps to follow such as understanding the market, legal
requirements, and establishment of important infrastructure. Here are a few steps that will
help you get started:
Research and knowledge – Market Knowledge
Learn about the commodities market, including consumer demand, supply, costing, and
dealing methods.
Training: pays attention to taking lessons or attending workshops on commodity trading
and the financial market.
Compliance With Law and Regulation
- Registration: register your company with the appropriate government agencies. This
involves getting a national tax number (NTN) and establishing with the Securities
and Exchange Commission of Pakistan (SECP) in Pakistan. - Certification: there is a requirement for specific permits for the commodities you
plan to trade. Trading agriculture commodities.
For example, it might require registrations with the appropriate trade groups
Select a Trading Platform – Broking Account
Create a profile with a legally recognized broker that offers commodities you want to trade.
Trading platform
Choose a trading platform that provides you with access to commodities markets and
fulfills your demands.
Build a Trading Strategy
To understand market movements and make wise judgments, apply technical and
fundamental analysis.
Management risk: develop risk-reduction plans to secure your investment and reduce
losses.
Investments and Loans
- Funding: make sure you have enough money to trade. It includes the price of buying
commodities as well as the money required for margin trading - Financial planning: to effectively manage your trading activity, create a budget and
financial plan.
Start Trading
- Demo trading: to practice trading without putting real money at risk, start with a
demo account. - Real trading: After you feel at ease using the trading platform and tactics, start
trading with real money.
Keep up to Date
- Market updates: stay informed about events and news that could impact commodity prices, including market trends, economic reports, and worldwide situations.
- Continuous learning: update your commodity trading-related knowledge and abilities regularly.
Networking
Industry interaction: develop a network of connections within the field to gain knowledge,
suggestions, and potential for future business. By devotion to this market awareness, one
can successfully begin trading commodities Pakistan.
Best Platforms for Commodity Trading in Pakistan
You may want to take into account the following exchange and platform for trading
commodities in Pakistan.
Pakistan Mercantile Market (PMES)
Pakistan’s main commodity trading market. It provides futures contracts on a range of
commodities including agriculture items, energy products, and precious metals.
Karachi Commodity Exchange (KCE)
It offers a platform for trading agricultural commodities, but it’s not as well known as
PMEX.
Pakistan Stoke Exchange (PSX)
With a primary concentration on stocks, PSX also engages in commodity trading via
indices and other financial instruments.
Online Trading Platform
Depending on the kind of commodities you have an interest in, sites like daraz.pk for
physical commodities and online brokers that provide access to international commodity
markets may also be helpful. It’s critical to do your research and choose a platform that
meets your trading requirements and the commodities you want to trade.
