List of Commodities Articles

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.

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.

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

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.

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 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.

How do you invest in commodities? Can you really invest in commodities in commodities in the first place?

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.

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.

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.

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.

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.

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.