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 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.

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 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.

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.

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.

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 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.

The commodities market is a preferred platform for trade for some investors. However, before delving into the trading instruments available in a commodity market, it’s important to understand the definition of a “commodity” in this form of trading.

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.

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.