The commodity market is the only market where goods and raw material or many products are brought into commodity market for trading, this type of products is exchanged by this market.
Firstly, the commodity product trading was developed in 19 centuries. At that time commodity buying and selling was completed by little clay coins, which were created by baking in summer season. On this time commodity buying & selling involves trading of pigs, sheep and other wheat, cattle and corns. Then after commodity market has converted in very large size and many further things were involved in it. Now commodity market trading is done by online in most of the world.
There are lots of commodities for buying and selling in the commodity trading market with the help of any adviser or broker. They can provide free Commodity Tips and suggestion. Commodity Market includes 2 types of exchanges they are:-
- MCX (Multi Commodity Exchange)
- NCDEX (National Commodity and Derivatives Exchange)
MCX – MCX was developed in the year 2003 in India. MCX is the India’s no. 1 commodity market exchange as it has 84% marketplace share in 2008. In worldwide, it has a 1st ranking in Silver 2nd in Natural gas and 3rd in Gold & Crude oil. MCX contain of following commodities:-
METAL – Aluminum, Lead, Copper, Sponge Iron, Zinc, Nickel, Steel Flat, Steel Long, Tin
BULLION – Gold, Gold HNI, I Gold, Gold M, Silver, Silver M, Silver HNI,
FIBER – Cotton M Staple, Cotton L Staple, Cotton Yarn, Kapas
SPICES – Jeera, Cardamom, Pepper, Red Chili
PULSES – Chana, Yellow Peas, Matur,
CEREALS – Maize
ENERGY – Crude Oil, Natural Gas, Furnace Oil, Plantations, Petrochemicals, Oil & Oil Seeds
NCDEX – It was developed on 23 April 2003 and it is a pure Public Limited Company. NCDEX is managed by FMC for Future Market Trading in Commodity products. It is situated in Mumbai.
Commodities Traded in NCDEX are as follows:-
Agri Based Commodities – Chana, Coffee, Chili, Crude Palm Oil, Cotton Seed, Groundnut, Guar Gum, Groundnut Expelled Oil, Gur, Jeera, Guar Seeds, Masoor Grain Bold, Kidney Beans, Staple cotton, Mulberry Raw Silk, Mentha Oil, Mulberry Green Cocoons etc.
BULLION – Gold 100 gm, Gold 1 KG, Silver 30KG, Silver 5 KG.
ENERGY – Furnace Oil, Brent Crude Oil, Light Sweet Crude Oil
FERROUS METALS – Mild Steel Ingot
PLASTICS – Linear Low Density Polyethylene, Polypropylene, Polyvinyl Chloride
NON-FERROUS METALS – Aluminum Ingot, Nickel Ingot, Copper Cathode, Zinc Cathode
There are lots of Traders, who buy & sell in Commodity Markets with the better Commodity NCDEX Tips, but the ones who Trade for long term only earns in Commodity Markets. Commodity Market is for those who have long term plans regarding investment. To work online in Commodity just Search on Google “Commodity Trading Online” and you will get a lot of information and resources. Also, you can find Brokers in this way, just search “Online Commodity Broker” and you will get no. Of them. If you are a Fresher in Commodity Trading then you should choose a good Advisory Company, which will help you to understand the market and help you to earn a profit.
Some Features of Online Trading & Futures Trading
Online commodity & futures trading are bywords nowadays. But this wasn’t the scene forever. The real commodity marketers belonged to the 1800s. They were now farmers who required selling what they had full-grown on their farming lands. Crops would be returned and produce brought to the marketplace for sale.
Not having the instructive services available in current times, they were not capable to judge, whether the goods and raw martial that they had brought were enough or less in amount. If the capacity was not correct for the buyers, the Agri farmers lost a chance to build more money and profits. If there was surplus quantity, produce such as crop products and dairy products would have to be farm carted back home. In that time, they would rot & spoil. Means, whether there was an extra or a deficiency, the Agri farmer suffered more losses.
Many times, a certain generate would be obtainable off season, but not in as big a quantity as it would be, if it is available during the normal season. Naturally, the Agri products made from this were put up for selling at very high prices.
These are the most important tips for new and old traders that are very beneficial and profitable for trading purpose. Every trader should read this and always keep in mind.
(1) The first and most important point for the online commodity product trading is having a brilliant grasp of how the market works (online or physical) and how the agreement are drawn high for future trade.
(2) Whether to include in online commodity product trading or future market trading, there has to be a creator of goods, raw Martial’s and customer of the similar goods. One is the buyer and another one is the seller in the contract.
(3) Buy and sell today has gone from farming produce and eating products to a lot of more, including monetary instruments. So the buyer and seller have plenty of commerce options.
(4) Online commodity product trading very differs from futures market trading in that goods or product may have to be controlled over physically. A legal receipt is issued to the client, enabling him to walk off to the warehouse and choose up the products and mistrials
(5) Another kind of agreement that has approach into being is the future agreement. This has involved from a forward agreement, which is nothing but a purchaser signing a contract to pay for money and buyer goods at a particular date sometime in the upcoming (generally, the time boundary is 3 months from the date put on the agreement). The goods will be received on that upcoming date.
(6) According to the contract, the purchaser is receiving a commodity not yet accessible. The rate is, Of course, choosing beforehand. Sometimes, the commodity products are priced regarding to future market values; stock trading market indices perform as decision-makers for the worth set on a special commodity.
(7) Another feature of futures market trading is that, neither the market seller is the real supplier of commodity product, nor the purchaser the real user of the commodity goods purchased. Only, if the trader or investor is personally involved with the real commodity purchased, will he give and use it.
(8) Futures agreements are very useful for both buyers & sellers because risks are reduced, plus the both parties get the chance to indulge in a small bit of speculation. There is no replacing of physical goods.
(9) Many types of strategies & plans and Commodity MCX Tips are available for the spot traders as well as future market traders, to build use of rising & falling rates to their top advantage. These strategies or plans can classify as–spread, going short & long.
(10) For the similar commodity, the rates specified in 2 different agreements may not be the similar. The businessman always tries to use the rate difference to his main advantage. This is also called a spread.
(11) Going always short indicates, that the investors are wondering if he can increase a profit from falling rates. The agreement is therefore put up for sold at a higher rate now, to be re-purchased at an inferior rate in the future.
(12) The final strategy or plan for online commodity market trading or futures market trading is going to long. Here, the traders and the investors sign a contract where the consumer is ready to buy the product at a predefined rate. He is accepting that the rate may go up in the future, yielding additional profits.