About Trading on Nymex
(Nidhi Nath Sriniwas )
DO you need a B-school pedigree, years of experience and a wily brain to become pan of the global commodity markets? It is time to find out. I stumbled upon Vishal Shah, a 27 -year-old, whose wife runs a tiny shop 'Silver Age Jewellery' in Mumbai's Breach Candy area. His father is a retired rice wholesaler. Yet this perfectly ordinary man-on -Mumbai-street has been able to double his money trading silver on New York's Nymex exchange. That too in three weeks. That's no ordinary feat. This is his story.
Vishal has never been to a fancy college. He speaks halting English. But he is good at accounts because since he was 15, he helped balance his father's bahi khatas. He dabbles in shares to supplement the joint family's finances. His only business tools are a three-year-old assembled PC, MTNL Triband, and Hindi news channels on TV. And his trading philosophy is impressive though he doesn't know Jim Rogers from John Travolta.
So, what gives? Vishal first thought about commodity trading in 2005, when he opened an account with Share khan, the brokerage firm, to trade metals on MCX. But he found the whole experience most confusing and expensive. The margins and commissions were steep; there are hardly any profits and the rules hard to understand. In frustration, Vishal gave it up.
In late 2006, he was approached by a Reliance Money (part of Reliance Capital) salesman who told him that Indians are now also allowed to trade on foreign commodity bourses. Somehow, the idea of trading abroad clicked with this otherwise highly risk-averse trader. He opened an account with the brokerage. Reliance Money has permission to let its customer’s trade on Nymex through its UK-based partner CMC Markets, which runs an online derivatives platform. But Vishal himself needed RBI's permission before he could start trading overseas.
DO you need a B-school pedigree, years of experience and a wily brain to become pan of the global commodity markets? It is time to find out. I stumbled upon Vishal Shah, a 27 -year-old, whose wife runs a tiny shop 'Silver Age Jewellery' in Mumbai's Breach Candy area. His father is a retired rice wholesaler. Yet this perfectly ordinary man-on -Mumbai-street has been able to double his money trading silver on New York's Nymex exchange. That too in three weeks. That's no ordinary feat. This is his story.
Vishal has never been to a fancy college. He speaks halting English. But he is good at accounts because since he was 15, he helped balance his father's bahi khatas. He dabbles in shares to supplement the joint family's finances. His only business tools are a three-year-old assembled PC, MTNL Triband, and Hindi news channels on TV. And his trading philosophy is impressive though he doesn't know Jim Rogers from John Travolta.
So, what gives? Vishal first thought about commodity trading in 2005, when he opened an account with Share khan, the brokerage firm, to trade metals on MCX. But he found the whole experience most confusing and expensive. The margins and commissions were steep; there are hardly any profits and the rules hard to understand. In frustration, Vishal gave it up.
In late 2006, he was approached by a Reliance Money (part of Reliance Capital) salesman who told him that Indians are now also allowed to trade on foreign commodity bourses. Somehow, the idea of trading abroad clicked with this otherwise highly risk-averse trader. He opened an account with the brokerage. Reliance Money has permission to let its customer’s trade on Nymex through its UK-based partner CMC Markets, which runs an online derivatives platform. But Vishal himself needed RBI's permission before he could start trading overseas.
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