Substantial and Effective Commodity Market

Commodity markets are platforms where raw products such as food grains, metals, cotton, and oilseeds are exchanged. Investors use this platform to buy and sell goods; the idea is to earn money through such transactions. These transactions are typically bound by contracts. Each buyer and seller has to respect these contracts.

The Indian commodity market made of two elements; retail as well as the wholesale market.

The commodity market in India allows people with a big investment occasion. India is yet to exploit commodities exchange to the fullest, which is one of the most active and matured markets in developed countries. As the demand for commodities grows, India will also see a subsequent rise in players. The commodity market in India has already gone through a sea change in terms of the number of products that comes under its portfolio and the overall dealings and part.

Commodity trading makes an interesting and financially sound proposition for investors who would like to tap or diversify into new investment options. Stocks, bonds and mutual funds have their own merits but commodities markets offer an exciting new avenue to earn money. Online commodity trading tips are vital for new traders and prevent them from calamities.

Retail investors can now choose from several commodity exchanges that have been set up in India to facilitate trades. The three national exchanges in India are as follows:

1. Multi Commodity Exchange (MCX)

2. National Commodity and Derivatives Exchange (NCDEX)

3. National Multi-Commodity Exchange (NMCE)

Copper price in India is typically based on international spot market rates. The prices are affected by several factors such as.

1. Global demand due to industrial growth.

2. Global financial crisis or recession.

3. Spurt in inflation.

A decade ago India was an importer of copper. But today, the scenario is quite different; it has become a net exporter. The credit for the rise in copper production goes mainly to private companies. As China, India, and Brazil continue to grow rapidly; the consumption of copper in the coming years will rise significantly, pushing the prices further.

Copper is the third most consumed metal after steel and aluminum.

In India, people love gold and silver. No wonder then trading in gold and silver is increasing with each passing day.

Commodity trading is based on futures trading, which gives a trader the option to pay margin money, which is just a fraction of the whole contract value. You do not need to deliver a commodity in physical form.

This option makes trading in commodities like gold and silver a great way to diversify your portfolio. This is the reason why more and more retail investors are now considering gold and silver commodity trading as an exciting investment option.