| Trading in commodities like Kapas, Cotton Candy, and a few others is restricted on CubePlus due to their infrequent trading activity and associated risks. Here’s why: |
| Liquidity Concerns: These commodities are traded very rarely, leading to low liquidity. This poses challenges for traders as it may become difficult to exit a position. |
| Risk of Physical Delivery: In illiquid markets, there’s a risk that a trader might be unable to exit the position, potentially leading to the position being marked for physical delivery. |
| Bid-Ask Spread Variability: The bid-ask spread, representing the difference between buying and selling prices, tends to be higher in such commodities. This means orders may get executed at prices that are significantly apart. |
| To ensure a smooth trading experience, CubePlus focuses on providing a diverse yet secure environment.
Also Read: BTST (Buy Today, Sell Tomorrow) Trading Strategy– Meaning, Advantages & Shortcomings |
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