National Spot Exchange Limited (NSEL) and Spot Trading ?
If you talk about Merchant Navy then you need to tell about DG Shipping too, so here too e-Gold and e-Silver details are incomplete without details about National Spot Exchange or NSEL.
What is spot exchange and spot trading ?
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Spot trading is where one buys and sells goods / commodity ‘on the spot’ of a defined quality just as we make purchases from a shop by paying cash. Spot trades are the opposite of futures contracts, which usually expire well before any physical delivery. For more details please check http://www.nationalspotexchange.com
What is NSEL ?
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National Spot Exchange Limited (NSEL) is a national-level, electronic spot trading platform for commodities.
National Spot Exchange (NSEL) in 2010 introduced investment products in commodity in Demat Form. In the same year NSEL also launched e-series of investment like e-Gold (17 March 2010) and e-Silver (21 April 2010). E-Series products were launched for small retail investors to invest in physical commodities (e.g. Bullion) in smaller denomination in Demat form (read electronic form). This kind of Bullion Investment is similar to Equity Investment.
Which all products are traded on NSEL ?
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Commodities traded on National Spot Exchange include agricultural commodities, bullions and metals.
NSEL has also introduced e-Series of investment products like e-Gold, e-Silver, e-Copper (and recently e-Zinc) to attract retail investors. In this post we cover only e-series of Investment Product.
NSEL is planning to introduce some Industrial products too in near future.
What are e-series of Investment Product ?
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These investment products allow investors to buy / sell commodities in demat form and hold them in their demat account. E-Series products provide opportunity for intra-day trading, coupled with demat delivery in respect of positions outstanding at end of the day. It deals with both Cash and Margin investment.
NSEL has launched e-Gold, e-Silver, e-Copper and recently e-Zinc. NSEL plans to launch around 20 products under e-Series by December, 2011.
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