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.
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 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.
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.
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.
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.
MCX or the Multi Commodity Exchange of India Ltd is a commodity exchange started by the Government of India in 2003. It is India’s biggest derivatives exchange, where commodities are traded in futures and options.
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. […]
In India, the equities market has always garnered the most attention, yet commodity and currency trading are often underestimated in terms of their potential. This scenario contrasts with worldwide statistics, which indicate that equities have lower turnover rates compared to the FX and commodity markets. But these markets are also gaining traction. Although there are similarities and distinctions between trading commodities and FX, traders must […]
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.
One of the things to understand about commodity trading is that the commodity market hours are much longer.
NCDEX and MCX were formed and became active exchanges for trading in commodities in 2003. In a way, NCDEX and MCX operate like the stock exchanges; the only difference being that they deal in commodities rather than in stocks and equity indices. Both the NCDEX and the MCX were regulated by the Forward Markets commission (FMC) till 2016. In the Union Budget 2016, the government decided to merge the FMC into SEBI and since then the two principal commodity exchanges viz. the NCDEX and the MCX have been regulated by SEBI. Let us first look at some key principles on which both the commodity exchanges operate.
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.
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