List of Commodities Articles

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.

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.

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.

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.

Diversification is the ultimate goal of any investor based on specific risk tolerating asset classes. Among numerous investment avenues, almost every risk-allocated portfolio has investments in commodities as they have an inverse relationship with equities and bonds.

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

Diversification is the ultimate goal of any investor based on specific risk tolerating asset classes. Among numerous investment avenues, almost every risk-allocated portfolio has investments in commodities as they have an inverse relationship with equities and bonds.

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.

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.

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 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.

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.

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 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.

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