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. […]
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.
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 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.
One of the most important factors that experienced investors swear by is not putting all of your eggs in one basket.
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.
Unlike equities, indices and currencies, the futures in commodities are physical in nature. Normally, commodity futures are used as tools of hedging underlying risk.
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.
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
Invest wise with Expert advice
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