Top Traded Volume - NCDEX

What is the Top Traded Volume on NCDEX?

The top traded volume on NCDEX denotes the total number of contracts traded for a particular commodity in a given time. High traded volume often indicates high interest in the commodity, liquidity, and active participation by the traders. The top traded volume metric is a crucial metric for investors and traders. It points out the most popular commodities on a given platform.

Why is Top Traded Volume Important?

Top traded volume is the most significant factor in reflecting the health and activity of the commodities market. Here are some of the reasons why this metric is crucial to market participants:

• Liquidity Indicator: Higher volumes usually indicate better liquidity for a commodity. Liquidity provides traders with smooth entry and exit options, thereby ruling out the risks of price manipulation and slippage.
• Market Trends: Top traded volumes provide insights into current market trends, helping traders identify the commodities attracting the most interest. This can improve decision-making about where to focus trading efforts.
• Price Discovery: High-volume trading tends to yield efficient price discovery that permits buyers and sellers to accept fair market prices. This is essential in agricultural commodities because pricing affects farmers and food supply chains.
• Risk Evaluation: Comparison of traded volume with price will allow a trader to evaluate the risk involved. Declining volumes as prices rise might reveal that buyers are dwindling.

Common Commodities with High Traded Volume

NCDEX primarily caters to agricultural commodities, and some commodities consistently rank among the highest traded by volume. These include:

• Soybean: Widely used in the food and feed industry, soybean contracts often witness robust trading activity. Seasonal demand, global soybean prices, and export trends impact its volume.
• Guar Seed and Guar Gum: India dominates the global guar gum market, making guar seed and gum highly traded on NCDEX. These commodities are driven by demand from the oil and gas sector.
• Chana (Chickpea): Chana futures are popular due to their staple food status and strong domestic demand. Pricing is influenced by agricultural yield and government policies.
• Mustard Seed: Being one of the high-volume commodities used in oil production, the mustard seed price is determined by crop output and climatic conditions.
• Jeera (Cumin): As it holds export value, jeera futures are sought after by traders to capitalise on the demand for spices both domestically and globally.
• Turmeric: Being an essential spice, turmeric contracts are traded frequently and are influenced by seasonal trends and export requirements.

How to Track Top Traded Volume on NCDEX

Monitoring and following the top traded volume on NCDEX can be a highly effective way for a trader or an investor to optimise their strategy. Here are some of the practical ways of tracking and analysing the metric:

• NCDEX Official Website: The exchange offers real-time data on traded volumes for every commodity. That data is available on their market dashboard.
• Brokerage Platforms: Many brokers provide sophisticated online trading platforms with analytics and charts that highlight traded commodities. These tools will typically include historical volume trends.
• Financial News and Reports: Releases from financial news websites and commodity market reports often detail the best-traded commodities and offer an inside look at the markets.
• Technical Analysis Software: Traders can use charting software to overlay volume on price movements. This is beneficial for identifying pattern formations, like breakouts or consolidations.
• Mobile Apps: Several mobile apps on commodity trading enable users to track volume data in real time on the go, providing effective and timely market updates.
• Social Media and Forums: Industry-specific forums and social media often discuss trending commodities and top traded volumes to provide investors with essential insights.