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How to avoid losses during commodity trading?

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

What is MCX?

MCX or the Multi Commodity Exchange of India Ltd is a commodity exchange started by the Government of India in 2003. It is India’s biggest derivatives exchange, where commodities are traded in futures and options.

Types of Commodities

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.

How Commodity Trading Works

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.

Role of Commodity Markets in India

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.

How To Trade in Commodities Market

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.

WHERE ARE COMMODITIES STORED

Unlike equities, indices and currencies, the futures in commodities are physical in nature. Normally, commodity futures are used as tools of hedging underlying risk.

HOW DOES THE COMMODITY MARKET WORK IN INDIA

One of the most interesting things to understand is how commodity market works. When we talk of the working of commodity market, we must understand that there are two distinct markets viz. the spot market and the derivatives market.

WHAT IS THE DIFFERENCE BETWEEN COMMODITY AND EQUITY

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.

WHAT ARE THE TIMINGS FOR COMMODITY MARKET TRADING

One of the things to understand about commodity trading is that the commodity market hours are much longer.

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