FAQ's
What is a commodity?
Commodities are tangible goods, such as food grains, industrial crops, bullion, 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, such as 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 contract prices of 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 trading 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 is a Trading Account?
A trading account is an account that allows both investors and traders to buy and sell various financial assets like stocks, bonds, commodities, currencies or other securities.
What is a Demat Account?
A demat account is like a bank account that facilitates the digital transfer 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 immense 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 cancelled 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?
Knowing when to buy and sell stocks, involves analyzing several factors, including market conditions, company performance, and broader economic indicators. Analysis can be done based on Fundamentals & Technical indicators. The fundamental analysis involves evaluating a company's financial health and overall potential for growth while technical analysis relies on charts and patterns to predict future price movements.
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; provides account/ portfolio updates and offer valuable investment and trading advice. Additionally, our user-friendly ReSACH mobile app provides seamless experience for online trading and investing
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 platform for on-the-go trading.
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, you can open a trading account with a SEBI-registered broker like Monarch and activate the relevant derivative segment(s) (e.g., Equities, 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, competitive position, industry trends, and growth potential. Assess factors like earnings, cash flow generation, management quality, and long-term sustainability 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 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 in Derivatives Trading?
Derivatives can amplify returns but require skills 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 Trading & Demat account, placing orders, and monitoring your positions through a secure online platform. Our experts can guide you through this digital onboarding 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 and trading 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.

