Fundamental Factors Affecting the Commodity Market.....!!!

The Indian economy is witnessing a mini revolution in commodity derivatives and risk management. Commodity options trading and cash settlement of commodity futures had been banned since1952 and until 2002 commodity derivatives market was virtually non-existent, except some negligible activation an OTC basis. Now in September 2005, the country has 3 national level electronic exchange and 21 regional exchanges for trading commodity future derivatives. As many as 103 commodities have been allowed for derivative trading. In this article we will discuss the various aspects of Commodity Marke

Basics of Commodity Markets in India :

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What are commodities and commodity markets?

 Any goods that are unbranded and traded commonly, such as Gold, Silver, Zinc, Rubber, Pepper, Sugar etc are a few of them.

Basically there are two type of markets, Spot and Future (Derivative) markets. In spot goods / commodity is bought and sold in physical form, whereas in Derivative market there are instruments based on commodity are traded via regularized exchanges.

In India we have two major exchanges which are: MCX (Multi Commodity Exchange) and NCDEX (National Commodity Derivatives Exchange). Brokers get registered with these exchanges and in turn clients with brokers.  

Commodity Trading Tips For Maximum Earning :

What is commodity trading ?

Commodity trading is an activity of investment which consists the buying and selling the goods, There are many similarities in the trade of commodities raw materials and trading stocks. A fundamental difference is to distinguish between what is marketed.

In commodity trading, Goods are normally defined valuable thing, a quality that is more or less coherent, and is produced in large quantities for a number of different producers. Whenever people are going to invest in commodity trading, we generally think in terms of elements that are resources that can be purchased for a wider range of programs or applications.