List of Commodities Articles

One of the key difference between equity and commodity is that one is more hedge or underlying driven and the other is more of trade driven.

In India, the Commodities Market is fairly untapped and underdeveloped. Owing to the risk involved and the cyclical nature of commodities, investors refrain from venturing into this segment.

The Indian financial market offers numerous ways, apart from equity, to invest, diversify and ensure a positively healthy portfolio. One such method is commodity trading.

The last decade has witnessed a boom in commodity trading. The ease of this form of trading has also improved by leaps and bounds. Investors are not only viewing commodities as hedging instruments but also as a tool to assist in diversification. Let’s understand commodities, their trading, and the boons and banes.

Let us look at the top commodities in terms of volumes and value. Which are the best commodities to trade in India and the top commodities in India for trading in futures.

The investment market in India is an exciting one for an investor looking to make profits. One can invest in multiple financial products such as equities, FDs, Mutual funds etc.

One of the key difference between equity and commodity is that one is more hedge or underlying driven and the other is more of trade driven.

In the first half of 2021, India witnessed an investing boom. Furthermore, the number of retail investors has risen tremendously over the past few years.

In India, the Commodities Market is fairly untapped and underdeveloped. Owing to the risk involved and the cyclical nature of commodities, investors refrain from venturing into this segment.

The Reserve Bank of India regulates the banking system, while Securities and Exchange Board of India (SEBI) regulates the securities market. The Insurance Regulatory and Development Authority (IRDA) regulates the insurance sector.

NCDEX and MCX were formed and became active exchanges for trading in commodities in 2003. In a way, NCDEX and MCX operate like the stock exchanges; the only difference being that they deal in commodities rather than in stocks and equity indices. Both the NCDEX and the MCX were regulated by the Forward Markets commission (FMC) till 2016. In the Union Budget 2016, the government decided to merge the FMC into SEBI and since then the two principal commodity exchanges viz. the NCDEX and the MCX have been regulated by SEBI. Let us first look at some key principles on which both the commodity exchanges operate.

A bullion market is a market where traders trade in precious metals like gold and silver. A bullion market is a place where exchanges of gold and silver take place over the counter and in the futures market. Trading in bullions market is open 24 hours.

The Indian financial market offers numerous ways, apart from equity, to invest, diversify and ensure a positively healthy portfolio. One such method is commodity trading.

Among numerous ways investors can trade and earn profits, commodity trading is one of the most sophisticated and sought after ways. Commodity trading is a way for investors to buy and sell commodities related to metals, agriculture, energy and livestock.

Gold’s reputation as a special kind of investment has been growing steadily. Investors can benefit from this dazzling metal in a number of ways, including portfolio diversification, inflation protection, affordability, and liquidity. Sovereign Gold Bonds (SGBs), gold futures, physical gold, gold exchange-traded funds (ETFs), and gold mutual funds are just a few of the investment choices available to gold investors. One of the easiest ways […]