Commodities
What are Commodity Derivatives?
The process of electronically buying and selling commodities in the commodity exchanges is the commodity trading meaning. Commodities are classified into the four categories - bullion, metals, energy, and agriculture. When it comes to commodities trading in India, you can trade in the following. - Bullion - gold and silver - Metals - copper, zinc, aluminium, lead, steel, and nickel - Energy - crude oil and natural gas - Agriculture - cotton, cardamom, crude palm oil, mentha oil, rubber, kapas, chana, barley, bajra, wheat, guar seed, guar gum, castor seed, soybean, turmeric, coriander, moong, maize, paddy, jeera, mustard seeds, sesame seed, gur, and more. You can participate in commodities market either through commodity derivates or through Commodity ETF’s and Commodity Index funds
Why Commodities ?
• Commodity Derivative are inversely proportional to Equity markets hence offers good Diversification to your investment portfolios
• Commodities maintain their value and price and hence provide a perfect Hedge against inflation
• Arbitrage opportunity between spot and future prices
• Trading and investing at nominal costs
• Almost 14-hour trading duration, covering the timings of international commodity exchanges as well
