How to Investing and Trading in Commodity Market


The commodity market is a place where dealing of business occurs between all types of commodities. Initially, only agricultural commodities were traded in the commodity market. But with the development of technology and industrialization, globalization commodities have crossed the moratorium and now it allows all kinds of commodities traded. The gradual evolution of commodity market in India has been of great vale for the country’s economic prosperity.

Indian commodity market includes two big places

Multi Commodity Exchange(MCX) and National Commodity & Derivative Exchange(NCDEX). MCX ie Multi Commodity Exchange comprise bullion metals and energy commodities. NCDEX ie National Commodity & Derivative Exchange with permit Investors to Trade in Agriculture Commodities with Free Online Commodity Tips. Multi Commodity Exchange of India Limited located in Mumbai, is also an unattached exchange recognized by the Government of India. National Commodity & Derivatives Exchange Limited located in Mumbai is a public limited company.

Commodity trading is done in somewhat theory: First is that trading need be done on standard products only. The second theory is that commodity trading takes place through future contracts. Like any other investment commodity trading do involves risk. The chance to limit that risk comes with experience and knowledge of the different markets.

Some denotation to trade in the commodity market that a trader must follow are:

  • Define certain harsh limits to define your damage.
  • To start trading wait for the suitable time.
  • Don’t change your way to respond toward trading as we can see that markets trade in a same direction for a long period of time.
  • Last but not the least select an eligible consultant from a good advisory and follow his advice for trading. Judge them on the basis of their prominence and the accuracy they provide on their tips.
  • And also do not change your advisor on a some damage as the stock market is a highly volatile place and your advisor or consultant are the only one’s who can help you in the worse prerequisite.

As compared to other markets in the last 15 years, commodity market has performed comparatively better than other markets like bonds, equity or currency. However, the participation in future trading in the Indian commodity market is very low as weigh to other countries. Commodity trading comprise: gold, silver, lead, nickel, zinc, aluminium, copper, crude oil, natural gas, menthol, soybean, guar seed, turmeric, cumin seed, palm sugar, gram, mustard seed and more.

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