What is Commodity Market?

What is Commodity Market?

Commodity Market This is a marketplace where investors trade many commodities like spices, precious metals, base metals, energy, crude oil.

What is Commodity Market?

Two types of commodities trading in India…:-

Agri or soft commodities include spices like black pepper, coriander, cardamom, cumin, turmeric and red chili. Apart from this, soya seeds, mentha oil, wheat, gram are also part of this.

Non-agri or hard commodities include gold, silver, copper, zinc, nickel, lead, aluminum, crude oil, natural gas.

Commodity

Difference between Equity Market and Commodity Market?

Shares of companies listed in the equity market are bought and sold. At the same time, raw materials are sold and bought in the commodity market.

The holder of equity is called shareholder, while the holder of commodity is called option.
The shareholder is considered to be the owner of the partial company, but not the commodity owners.

Equity shares do not have an expiry date. Whereas this is not the case in commodities.
Shareholders in the equity market are considered eligible for dividends. On the other hand, there is no provision of dividend in the commodity market.

https://shareinfobazaar.com/dividend/

Major Commodity Exchanges in India :-

There are major exchanges for commodity trading in India. This includes Multi Commodity Exchange (MCX), National Commodity and Derivatives Exchange (NCDEX) as well as Universal Commodity Exchange (UCX), National Multi Commodity Exchange (NMCE), Indian Commodity Exchange (ICEX), ACE Derivatives and Commodity Exchange Ltd.

How is trading done in the commodity market?

To start trading in commodities, a demat account is required. The demat account will secure all your trades and holdings, but you will need to go through a broker to place an order on the exchange.

Also Read :-

https://shareinfobazaar.com/stock-market-chart/
https://shareinfobazaar.com/sensex/
https://shareinfobazaar.com/this-share-give-5400-return-in-five-years/

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