List of Commodities Articles

India’s rapid economic growth has fueled an insatiable demand for oil and petroleum products as the world’s third largest oil consumer on the side of the US and China. India’s energy needs are met through a combination of domestic production and imports. This article analyses the crucial role played by upstream and downstream oil companies in satisfying India’s oil appetite today and powering future growth. […]

Gold has always been known as a unique class of investment. This dazzling metal can benefit investors in a number of ways, such as portfolio diversification, inflation protection, and liquidity. Investors in gold have several investment options to choose from: sovereign Gold Bonds, gold futures, and gold mutual funds, among others. Gold futures are among the easiest means of trading gold for investors. A gold […]

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 stock market is a preferable choice for most investors. However, there is a completely different asset class that knowledgeable investors prefer to trade and earn hefty profits: 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.

India’s rapid economic growth has fueled an insatiable demand for oil and petroleum products as the world’s third largest oil consumer on the side of the US and China. India’s energy needs are met through a combination of domestic production and imports. This article analyses the crucial role played by upstream and downstream oil companies in satisfying India’s oil appetite today and powering future growth. […]

In India, the equities market has always garnered the most attention, yet commodity and currency trading are often underestimated in terms of their potential. This scenario contrasts with worldwide statistics, which indicate that equities have lower turnover rates compared to the FX and commodity markets. But these markets are also gaining traction. Although there are similarities and distinctions between trading commodities and FX, traders must […]

Gold has always been known as a unique class of investment. This dazzling metal can benefit investors in a number of ways, such as portfolio diversification, inflation protection, and liquidity. Investors in gold have several investment options to choose from: sovereign Gold Bonds, gold futures, and gold mutual funds, among others. Gold futures are among the easiest means of trading gold for investors. A gold […]

CTT shall be levied on non-agricultural commodities futures contracts at the same rate as on equity futures that is at 0.01% of the price of the trade

You can buy commodities in the spot market as well as the futures market. For example, you can either buy gold in the spot market and take delivery, or you can buy gold in the futures market and decide about the delivery before expiry.

In India, there are two principal commodity exchanges, viz. the Multi Commodity Exchange (MCX) and the National Commodity and Derivatives Exchange (NCDEX). While the MCX is the clear leader in non-agricultural commodities like bullion, crude oil, and industrial metals, NCDEX leads in agricultural commodities trading.

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.

One of the most important factors that experienced investors swear by is not putting all of your eggs in one basket.